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Outside Counsel Guidelines Meet AI: The Hidden Compliance Minefield

UC Berkeley Law's Advanced Program on Law and Innovation (APLI) surfaced a live tension in the market: many outside counsel guidelines (OCGs) contain AI prohibitions drafted in 2022–2023 that now directly conflict with current in-house client expectations that firms use AI to reduce costs.

BY CLIENT INTELLIGENCE DESK · JUNE 2, 2026 · 1 MIN READ

UC Berkeley Law's Advanced Program on Law and Innovation (APLI) surfaced a live tension in the market: many outside counsel guidelines (OCGs) contain AI prohibitions drafted in 2022–2023 that now directly conflict with current in-house client expectations that firms use AI to reduce costs. David Lisson and Chris Mammen flagged that engagement agreement fine print raises unresolved questions about data ownership, precedent rights, and vendor attestation obligations under protective orders. Clients are beginning to require coordination among lawyers, IT, data privacy teams, and outside firms before any AI tool is deployed on a matter — creating a new pre-engagement compliance layer that traditional OCG frameworks were not designed to handle.

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