AI Isn’t Always Confidential: A Word of Caution for Real Estate Attorneys

In a rapidly evolving legal and tech landscape, AI tools like ChatGPT, Google Gemini, and other free online assistants are revolutionizing how we draft, review, and manage information. They offer speed, convenience, and powerful capabilities. But as real estate attorneys, we must ask a critical question: Are these tools safe for client data?

🔐 The Temptation: Free Tools, Big Productivity Gains

It's easy to see why these tools are so appealing. Need help drafting a contract clause? Want a quick summary of a lease agreement? Just copy, paste, and get results in seconds.

But here’s the catch: what you input into these tools may not be as private as you think.

⚠️ The Risk: Confidentiality and Data Exposure

Free AI tools often come with terms of service that allow the provider to store, analyze, and even use your input data to improve their models. That means when you paste a buyer’s full contract, personal financials, or details of a property dispute into a free AI tool, that information might be stored on a third-party server.

This can violate attorney-client privilege, local privacy laws, and even your state’s Rules of Professional Conduct.Especially in real estate transactions—where deals often involve sensitive financial, legal, and property data—the stakes are too high.

📜 Ethical Considerations: What the Rules Say

The ABA’s Model Rules of Professional Conduct (and many state-specific counterparts) stress a lawyer’s duty to protect client confidentiality. Using unvetted tools—particularly ones with unclear data policies—may unintentionally breach that duty.

You wouldn’t leave a stack of client files on a park bench. Think of unprotected AI tools the same way.

✅ Safer Alternatives for Attorneys

If you want to incorporate AI into your workflow responsibly:

• Use vetted, legal-specific AI tools that guarantee confidentiality (e.g., Lexis+ AI, Harvey AI, etc.).

• Check for “no data retention” policies or tools that allow you to opt out of data training.

• Never upload identifiable client documents into open-access tools.

• Use internal, firm-approved AI solutions that run on encrypted or closed systems.

  
  

🏛️ Bottom Line: Use Caution, Not Just Convenience

AI is an incredible tool, and it’s here to stay—but for real estate attorneys, confidentiality should always come before convenience. Know the risks, read the fine print, and always protect your client’s trust.

If you're unsure about a tool, don’t use it—your clients (and your license) will thank you.