On September 30, 2026, California’s governor signed SB 574, the first state law in the United States that directly regulates how lawyers and arbitrators use generative AI. Lawyers already rely more and more on AI tools in their daily work, including agentic systems.

Among other provisions, SB 574 bars attorneys from delegating the practice of law to AI. Attorneys may enter confidential or personal client information only into AI tools restricted to the attorney and those the attorney authorizes. Attorneys must also verify every citation in their court filings, including those generated by AI, and disclose to the court when they used AI to prepare a document. Arbitrators may not delegate their decision-making to AI or rely on AI-generated information without first disclosing it to the parties.

The law builds on duties lawyers already had, such as competence, confidentiality, candor with the courts, loyalty to clients, and supervision. Some of these duties appear in general terms in procedural rules, such as Federal Rule of Civil Procedure 11 and California Code of Civil Procedure section 128.7. Others come from the American Bar Association (ABA) Model Rules of Professional Conduct and from each state’s ethics rules. ABA Formal Opinion 512 explains how those ethics rules apply to generative AI, and several courts have already issued orders requiring lawyers to disclose AI use and verify their sources.

As AI becomes part of how we practice law, we must act with care, stay competent in the matters we handle, and understand both what it can and cannot do and the rules that govern its use, especially as agentic systems emerge. As with any new technology, it is only as good as the person guiding it, so knowing how it works helps us avoid malpractice, notice when something is off, and apply the sound judgment that raises the bar in an increasingly tech-driven legal profession.

Read the full text of SB 574: https://lnkd.in/eS_dxYS6

The views expressed here are my own and are offered for general informational purposes only. They do not constitute legal advice or create an attorney-client relationship.

Julio Zerecero
Independent Strategic Advisor | Glitch
glitchlex.com | linkedin.com/in/juliozerecero