Hunton Employment & Labor Perspectives

Overview

SB 574 is a California bill that would set specific duties for attorneys who use generative artificial intelligence and would restrict how arbitrators may use such tools in decision-making. It would amend provisions in the Business and Professions Code and the Code of Civil Procedure to address confidentiality, accuracy, bias, and citation verification for attorneys, and to prohibit delegation of arbitral decision-making to AI while adding disclosure and responsibility requirements for arbitrators.

What SB 574 Would Require of Attorneys

The proposed bill would require attorneys to protect client confidentiality, verify all AI-generated content, and avoid discriminatory or biased outputs.

Confidentiality: Attorneys using generative AI must ensure that confidential, personal identifying, or other nonpublic information is not entered into a public generative AI system. Personal identifying information includes items such as driver’s license numbers, dates of birth, Social Security numbers, contact information of parties and court personnel, medical or psychiatric information, financial information, account numbers, and any content sealed by court order or deemed confidential by rule or statute.

Accuracy and Accountability: Attorneys must take reasonable steps to verify the accuracy of AI-generated material, correct erroneous or hallucinated output, and remove biased, offensive, or harmful content in any AI material they use, including work prepared on their behalf by others.

Anti-Discrimination: Attorneys must ensure their use of AI does not unlawfully discriminate against or disparately impact protected classes, including categories such as age, race, gender identity, disability, national origin, religion, sexual orientation, socioeconomic status, and other classifications protected by federal or state law.

Public-Facing Content: Attorneys must consider whether to disclose AI use when AI is used to create content provided to the public.

Citation Verification in Court Filings: Attorneys must read and verify every citation in court filings, including citations provided by generative AI.

What SB 574 Would Require of Arbitrators

Under the proposed bill, arbitrators cannot delegate decision-making to AI, must independently analyze evidence, and must disclose any use of AI-generated information outside the record.

No Delegation to AI: Arbitrators may not delegate any part of their decision-making process to generative AI, and AI use cannot replace their independent analysis of facts, law, and evidence. Arbitrators must avoid delegating tasks to AI if such use could influence procedural or substantive decisions.

Limits on Extra-Record AI Information: Arbitrators may not rely on AI-generated information outside the record without first making appropriate disclosures to the parties and, as practical, allowing comment. If an AI tool cannot cite independently verifiable sources, the arbitrator may not assume such sources exist or are described accurately.

Responsibility for Awards: Arbitrators must assume responsibility for all aspects of an award regardless of any AI assistance used in the process.

Bottom Line

SB 574 would not ban legal professionals from using AI. Rather, it would set guardrails that reinforce confidentiality, accuracy, fairness, transparency, and personal accountability in both litigation and arbitration contexts.

As the bill moves through the Assembly, attorneys and arbitrators should begin preparing for a future where technology and human judgment work hand in hand.