📖 Word of the Week: RAG (Retrieval-Augmented Generation) - The Legal AI Breakthrough Eliminating Hallucinations. 📚⚖️

What is RAG?

USEd responsibly, rag can be a great tool for lawyers!

Retrieval-Augmented Generation (RAG) is a groundbreaking artificial intelligence technique that combines information retrieval with text generation. Unlike traditional AI systems that rely solely on pre-trained data, RAG dynamically retrieves relevant information from external legal databases before generating responses.

Why RAG Matters for Legal Practice

RAG addresses the most significant concern with legal AI: fabricated citations and "hallucinations." By grounding AI responses in verified legal sources, RAG systems dramatically reduce the risk of generating fictional case law. Recent studies show RAG-powered legal tools produce hallucination rates comparable to human-only work.

Key Benefits

RAG technology offers several advantages for legal professionals:

Enhanced Accuracy: RAG systems pull from authoritative legal databases, ensuring responses are based on actual statutes, cases, and regulations rather than statistical patterns.

Real-Time Updates: Unlike static AI models, RAG can access current legal information, making it valuable for rapidly evolving areas of law.

Source Attribution: RAG provides clear citations and references, enabling attorneys to verify and build upon AI-generated research.

Practical Applications

lawyers who don’t use ai technology like rag will be replaced those who do!

Law firms are implementing RAG for case law research, contract analysis, and legal memo drafting. The technology excels at tasks requiring specific legal authorities and performs best when presented with clearly defined legal issues.

Professional Responsibility Under ABA Model Rules

ABA Model Rule 1.1 (Competence): Comment 8 requires lawyers to "keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology." This mandates understanding RAG capabilities and limitations before use.

ABA Model Rule 1.6 (Confidentiality): Lawyers must "make reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, information relating to the representation of a client." When using RAG systems, attorneys must verify data security measures and understand how client information is processed and stored.

ABA Model Rule 5.3 (Supervision of Nonlawyer Assistants): ABA Formal Opinion 512 clarifies that AI tools may be considered "nonlawyer assistants" requiring supervision. Lawyers must establish clear policies for RAG usage and ensure proper training on ethical obligations.

ABA Formal Opinion 512: This 2024 guidance emphasizes that lawyers cannot abdicate professional judgment to AI systems. While RAG systems offer improved reliability over general AI tools, attorneys remain responsible for verifying outputs and maintaining competent oversight.

Final Thoughts: Implementation Considerations

lawyers must consider their ethical responsibilities when using generative ai, large language models, and rag.

While RAG significantly improves AI reliability, attorneys must still verify outputs and exercise professional judgment. The technology enhances rather than replaces legal expertise. Lawyers should understand terms of service, consult technical experts when needed, and maintain "human-in-the-loop" oversight consistent with professional responsibility requirements.

RAG represents a crucial step toward trustworthy legal AI, offering attorneys powerful research capabilities while maintaining the accuracy standards essential to legal practice and compliance with ABA Model Rules. Just make sure you use it correctly and check your work!

Word of the Week: Synthetic Data 🧑‍💻⚖️

What Is Synthetic Data?

Synthetic data is information that is generated by algorithms to mimic the statistical properties of real-world data, but it contains no actual client or case details. For lawyers, this means you can test software, train AI models, or simulate legal scenarios without risking confidential information or breaching privacy regulations. Synthetic data is not “fake” in the sense of being random or useless—it is engineered to be realistic and valuable for analysis.

How Synthetic Data Applies to Lawyers

  • Privacy Protection: Synthetic data allows law firms to comply with strict privacy laws like GDPR and CCPA by removing any real personal identifiers from the datasets used in legal tech projects.

  • AI Training: Legal AI tools need large, high-quality datasets to learn and improve. Synthetic data fills gaps when real data is scarce, sensitive, or restricted by regulation.

  • Software Testing: When developing or testing new legal software, synthetic data lets you simulate real-world scenarios without exposing client secrets or sensitive case details.

  • Cost and Efficiency: It is often faster and less expensive to generate synthetic data than to collect, clean, and anonymize real legal data.

Lawyers know your data source; your license could depend on it!

📢

Lawyers know your data source; your license could depend on it! 📢

Synthetic Data vs. Hallucinations

  • Synthetic Data: Created on purpose, following strict rules to reflect real-world patterns. Used for training, testing, and developing legal tech tools. It is transparent and traceable; you know how and why it was generated.

  • AI Hallucinations: Occur when an AI system generates information that appears plausible but is factually incorrect or entirely fabricated. In law, this can mean made-up case citations, statutes, or legal arguments. Hallucinations are unpredictable and can lead to serious professional risks if not caught.

Key Difference: Synthetic data is intentionally crafted for safe, ethical, and lawful use. Hallucinations are unintentional errors that can mislead and cause harm.

Why Lawyers Should Care

  • Compliance: Using synthetic data helps you stay on the right side of privacy and data protection laws.

  • Risk Management: It reduces the risk of data breaches and regulatory penalties.

  • Innovation: Enables law firms to innovate and improve processes without risking client trust or confidentiality.

  • Professional Responsibility: Helps lawyers avoid the dangers of relying on unverified AI outputs, which can lead to sanctions or reputational damage.

Lawyers know your data source; your license could depend on it!

ILTACON 2025 Opening: Navigating the Legal Tech Treasure Trove ⚓

Get your legal tech plunder at #ILTACON2025

Ahoy, legal tech voyagers! ⛵ ILTACON 2025 has officially set sail at the magnificent Gaylord National Resort & Convention Center in National Harbor, Maryland, and what a spectacular opening it's been. From August 10-14, over 4,000 legal professionals interested in legal technology are charting their course through the most comprehensive bounty of legal tech innovations ever assembled.

This year's pirate theme couldn't be more fitting. Legal professionals have truly become modern-day treasure hunters, seeking out the digital gold that will transform their practices. The opening reception on Monday morning perfectly captured this spirit, with maritime merriment setting the tone for what promises to be an extraordinary week of discovery.

Among the distinguished crew of attendees, we spotted previous podcast guest Stephen Embry, the brilliant mind behind the TechLaw Crossroads blog and former chair of the American Bar Association’s Law Practice Division. His insights on artificial intelligence adoption and legal technology competency continue to guide practitioners navigating the choppy waters of digital transformation. Also making waves is Brett Burney, Vice President of NextPoint Law Group, whose expertise in bridging the chasm between legal and technology frontiers has made him a sought-after guide for firms embracing Discovery solutions.

The exhibit hall, themed as the "Pirate's Bounty," features over 225 vendors displaying their technological treasures. From AI-powered legal research tools to advanced case management systems, the bounty available to legal professionals has never been more abundant. The challenge isn't finding technology—it's selecting the right tools that will genuinely enhance practice efficiency without overwhelming existing workflows.

What makes ILTACON unique is its peer-driven approach to education. Unlike vendor-heavy conferences, ILTACON sessions are crafted by practitioners who have firsthand experience with the challenges facing legal technology professionals. This year's 80+ educational sessions span eight focus areas, ensuring every legal professional finds relevant insights to take back to their firm.

For firms with limited to moderate technology skills, ILTACON provides the perfect environment to learn from peers who have successfully navigated similar challenges. The networking opportunities alone justify the investment, as connections made here often lead to solutions for specific practice challenges.

The pirate theme extends beyond mere decoration—it represents the adventurous spirit required to succeed in today's legal technology landscape. Legal professionals must be willing to explore uncharted territories, test new solutions, and occasionally take calculated risks to discover the innovations that will give their practices a competitive edge.

#ILTACON2025

As we sail through this week of discovery, remember that the real treasure isn't the technology itself—it's the enhanced client service, improved efficiency, and competitive advantages these tools provide when properly implemented.

May fair winds fill your sails as you navigate this legal tech treasure trove! ⚓

#ILTACON2025

🎙️ Ep. 117: Legal Tech Revolution,  How Dorna Moini Built Gavel.ai to Transform the Practice of Law with AI and Automation.

Dorna Moini, CEO and Founder of Gavel, discusses how generative AI is transforming the way legal professionals work. She explains how Gavel helps lawyers automate their work, save time, and reach more clients without needing to know how to code. In the conversation, she shares the top three ways AI has improved Gavel's tools and operations. She also highlights the most significant security risks that lawyers should be aware of when using AI tools. Lastly, she provides simple tips to ensure AI-generated results are accurate and reliable, as well as how to avoid false or misleading information.

Join Dorna and me as we discuss the following three questions and more!

  1. What are the top three ways generative AI has transferred Gavel's offerings and operations?

  2. What are the top three most critical security concerns legal professionals should be aware of when using AI-integrated products like Gavel?

  3. What are the top three ways to ensure the accuracy and reliability of AI-generated results, including measures to prevent false or misleading information or hallucinations?

In our conversation, we cover the following:

[01:16] Dorna's Tech Setup and Upgrades

[03:56] Discussion on Computer and Smartphone Upgrades

[08:31] Exploring Additional Tech and Sleeping Technology

[09:32] Generative AI's Impact on Gavel's Operations

[13:13] Critical Security Concerns in AI-Integrated Products

[16:44] Playbooks and Redline Capabilities in Gavel Exec

[20:45] Contact Information

Resources

Connect with Dorna:

Websites & SaaS Products:

  • Apple Podcasts — Podcast platform (for reviews)

  • Apple Podcasts — Podcast platform (for reviews)

  • ChatGPT — AI conversational assistant by OpenAI

  • ChatGPT — AI conversational assistant by OpenAI

  • Gavel — AI-powered legal automation platform (formerly Documate)

  • Gavel Exec — AI assistant for legal document review and redlining (part of Gavel)

  • MacRumors — Apple news and product cycle information

  • MacRumors — Apple news and product cycle information

  • Notion — Workspace for notes, databases, and project management

  • Notion — Workspace for notes, databases, and project management

  • Slack — Team communication and collaboration platform 

Hardware:

Other:

📖 Word(s) of the Week (Wow): "Service as a Service" (SaaS) & "Hardware as a Service" (HaaS)!

SaaS vs. HaaS: What Law Firms Need to Know About Service as a Service and Hardware as a Service in 2025 ⚖️💻

Exploring SaaS vs. HaaS in Legal Tech!

Legal practices are rapidly embracing cloud-based solutions, and two models stand out: Software as a Service (SaaS) and Hardware as a Service (HaaS). Understanding these models is essential for law firms seeking efficiency, security, and cost-effectiveness in 2025.

What is SaaS?
SaaS is a cloud-based software delivery model. Instead of buying software outright and installing it on each device, law firms subscribe to web-hosted applications. This means no more managing physical servers or complex installations. Leading SaaS providers handle updates, security, and maintenance, freeing attorneys to focus on clients and cases.

Benefits of SaaS for Law Firms:

  • Centralized, secure document management—enabling paperless workflows and real-time collaboration.

  • Cost savings by eliminating expensive hardware and IT support. Firms pay only for what they use and can scale up or down as needed.

  • Remote access to case files, calendars, and billing from anywhere, supporting hybrid and remote work environments.

  • Automatic updates and improved security, with providers responsible for compliance and data protection.

  • Specialized legal features, such as document automation, calendaring, and legal billing, tailored for law practices.

Legal Considerations for SaaS:
SaaS agreements replace traditional software licenses. They must clearly define service levels, data privacy, and compliance with regulations. SaaS lawyers play a crucial role in drafting contracts, protecting intellectual property, and ensuring regulatory compliance across jurisdictions.

What is HaaS?
HaaS provides physical hardware—like computers, servers, or networking equipment—on a subscription basis. Law firms avoid large upfront purchases and instead pay a monthly fee for access, support, and maintenance. HaaS often includes installation, configuration, troubleshooting, and ongoing monitoring.

Benefits of HaaS for Law Firms:

Knowing your SAAS and Haas agreement terms is essential to maintaining client confidentiality and security

  • Predictable budgeting with no surprise hardware expenses.

  • Up-to-date equipment and proactive maintenance, reducing downtime.

  • Comprehensive support agreements, including warranties and rapid response times.

  • Enhanced security and compliance, as providers manage device updates and data protection.

Legal Considerations for HaaS:
HaaS contracts should specify the scope of services, pricing, service-level agreements (SLAs), liability, data privacy, and dispute resolution. Clear terms protect both the law firm and the provider, ensuring accountability and compliance with industry standards.

Challenges Law Firms Face in Using SaaS and HaaS

Law firms adopting SaaS and HaaS face several notable challenges:

  • Security Vulnerabilities: SaaS platforms can be susceptible to misconfigured access controls, inadequate monitoring, and insufficient threat detection. These weaknesses make law firms prime targets for cyberattacks, such as unauthorized access and data breaches, as seen in high-profile incidents involving major firms.

  • Data Breaches and Compliance Risks: Sensitive client data stored in SaaS environments is at risk if proper security measures are not in place. Breaches can expose confidential information, leading to regulatory penalties, reputational damage, and class action lawsuits if firms fail to notify affected parties promptly.

  • Integration Challenges: As law firms rely on multiple SaaS vendors, integrating various software platforms can become complex. Poor integration may disrupt workflows and reduce efficiency, especially if systems do not communicate seamlessly.

  • Shared Responsibility Confusion: SaaS providers typically secure the platform, but law firms are responsible for data security and access controls. Many firms mistakenly believe vendor security alone is sufficient, which can leave critical data exposed.

  • Reliable and consistent internet access: Reliable and consistent internet access is essential for law firms using SaaS and HaaS, as these cloud-based solutions require an active connection to access software, documents, and case management tools; any internet outage or slow connectivity can disrupt workflows, limit access to critical information, and impact client service. (What if you are on travel and the airplane, hotel, or location does have (reliable) internet connection - how do you get your work done?)

  • Business Email Compromise (BEC): SaaS ecosystems increase the risk of BEC attacks. Compromised email accounts can be exploited for fraud, impersonation, and data theft, often going undetected for extended periods.

  • Data Classification and Visibility Issues: Rapid adoption of SaaS can lead to scattered data across multiple platforms. Without a formal data classification strategy, firms may lose track of where sensitive information resides, complicating compliance and incident response.

  • Legal and Contractual Complexities: SaaS contracts involve nuanced licensing agreements, third-party vendor relationships, and service level commitments. Discrepancies between vendor terms and client expectations can result in disputes and legal challenges.

  • Dependency on Providers: Both SaaS and HaaS models make firms dependent on external vendors for uptime, support, and updates. Service disruptions or vendor instability can directly impact firm operations.

  • Hardware Lifecycle Management: With HaaS, firms avoid upfront hardware costs but must rely on the provider for timely upgrades, maintenance, and support. Poor vendor performance can lead to outdated equipment, downtime, or security gaps.

  • Cost Over Time: While SaaS and HaaS reduce initial capital expenditures, ongoing subscription fees may add up, potentially exceeding the cost of traditional ownership in the long term if not carefully managed.

Lawyers need to know the pros and cons in using saas and haas products!

While SaaS and HaaS offer significant advantages, law firms must address these risks through robust security practices, careful contract negotiation, and ongoing vendor management to protect sensitive data and maintain operational integrity. This may be easier for large law firms but difficult if not nearly impossible for mid- to small- to solo-size law practices.

Why Law Firms Should Care
Both SaaS and HaaS offer flexibility, scalability, and security that traditional IT models cannot match. By leveraging these services, law firms can modernize operations, improve client service, and reduce risk. The right contracts and due diligence are critical to ensure business continuity and compliance in a rapidly evolving legal tech landscape.