AI mistakes in litigation have drawn public attention due to visible court filings, while errors in transactional work remain largely unseen because deal documents are private. Roy Hadley of Morris Manning & Martin notes that transactional lawyers often review and edit drafts multiple times, which helps prevent AI-related issues from reaching final agreements. Beverly Rich, Vice president of AI and innovation at UnitedLex, adds that the less adversarial nature of transactional work and its repeated review cycles may allow errors or AI hallucinations to be identified and corrected, though Hadley cautions that lawyers must guard against leaking confidential data into AI models.
Jeffrey Lowe of CenterPeak warns that unnoticed AI mistakes in deals could lead to multimillion- or billion-dollar losses and reputational damage. Stephen Revell of Lexington Consultants explains that while insurers are beginning to discuss AI exposure, they still treat such issues as standard professional negligence. Revell also notes that AI has long been part of transactional practice, but its growing sophistication brings new challenges. John Skakun of Sidley Austin emphasizes the importance of transparency with clients about how AI is used, calling open communication and strong governance key to preventing future problems.
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