March 18, 2025 • 20 mins
Navigating the intersection of artificial intelligence and professional licensing presents both unprecedented opportunities and complex challenges. As AI transforms industries like healthcare, legal services, and real estate, professionals must understand how to harness these powerful tools while maintaining compliance with regulatory standards and ethical obligations.
This conversation with experts from Bertolino Law Firm, Sheri Middlemas and Troy Beaulieu, reveals how AI is already revolutionizing professional workflows through automations, analytics, and document preparation. Beyond mere efficiency gains, AI enables enhanced service delivery and strategic business growth. However, as Troy eloquently states, "You really need to think about AI as just another tool in the toolbox," emphasizing that professionals ultimately remain responsible for all work produced, even when assisted by intelligent systems.
Recent cases where attorneys faced sanctions for submitting AI-generated content with fabricated case citations serve as stark warnings about the risks of over-reliance on these technologies. Our experts stress the critical importance of maintaining client confidentiality when using AI platforms and developing comprehensive policies governing AI implementation in professional settings. As Sheri advises, "If you're going to be utilizing AI—and hey, you should be—with great power comes great responsibility." Those who fail to adapt thoughtfully to AI integration may find themselves unable to compete in rapidly evolving professional landscapes.
Looking toward the future, the Texas Responsible AI Governance Act (TRAIGA) signals increasing regulatory attention to AI applications in professional settings. Whether you're already incorporating AI into your practice or just beginning to explore its potential, this episode provides essential guidance for maintaining compliance while leveraging technological innovation. Subscribe to Know Your Regulator for more insights on navigating the evolving regulatory landscape and ensuring your professional practice remains both cutting-edge and compliant.
Get more information, details and resources on Know Your Regulator - https://www.belolaw.com/know-your-regulator
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
This podcast is for educational purposes only, does
not constitute legal advice anddoes not create an
attorney-client relationship.
If you need legal assistanceabout a legal problem, contact
an attorney.
Speaker 2 (00:13):
Howdy and welcome to Know your Regulator, the podcast
that inspires you to engage.
I am your host, simone Murphy,and today we are diving into a
topic that is reshapingindustries across the board
artificial intelligence AI isalready being integrated into
professional practices inhealthcare, legal services,
(00:33):
finance and beyond.
But as exciting as AI'spotential is, it also brings new
compliance challenges, legalrisks and ethical considerations
that licensed professionalsneed to be aware of.
To help us break this down, I'mjoined by two experts from the
Bertolino Law Firm.
First, we have SherryMiddlemass, chief Operating
(00:54):
Officer, who has extensiveexperience in operations and
regulatory compliance.
Welcome, sherry.
Hey, thanks for having me,simone.
Also with us is Troy Bull, yourDirector of Legal Services for
the Bertolino Law Firm.
Troy specializes in regulatorycompliance and professional
license defense, making him theperfect person to help us
(01:14):
understand the legal landscapearound AI.
Thank you for being here, troy.
Speaker 3 (01:18):
Thanks, simone, excited to be here and talk
about how AI is reshaping theworld that we live in.
Speaker 2 (01:25):
Yes, so we will just jump into it.
Ai is becoming an essentialtool for professionals across
many different industries.
It's got the potential toimprove efficiency and accuracy
in so many areas, but what doesthat actually look like for
professionals in theirday-to-day practice?
Sherry, can you give us anoverview of how AI is already
(01:48):
being used in licensedprofessions and some of the
benefits that you've seen?
Speaker 1 (01:53):
Thanks, simone.
That's a great question.
So we've been using AItechnologies within our law firm
for several years and mostpeople, whether they realize it
or not, are probably using it intheirs as well.
So we're talking about chatbotson websites, self-scheduling,
ai automations that integratewith different software programs
(02:14):
, workflow automation and thesecan be very simple automations,
but they are AI, and so, as AIhas kind of really developed and
become more used and more knownto the general public over the
past what 40 years or so, we'vereally utilized it in so many
(02:37):
different ways.
So when you're talking about AI, there's different AI, and so
there's also generative AI whichhas become used with ChatGPT
and some of the other platformsthat are out there.
So from an operations standpoint, yes, automating workflow has
been a big one.
We've actually utilized AI witha lot of our operational
(02:58):
workflows.
That has saved a lot of time forour staff in administrative
processes so they can focus ondoing more substantive work.
From an executive standpoint,it's been invaluable with
helping with from strategicgrowth, looking at data and
helping us do some analytics asfar as that goes market trends,
(03:23):
competitive analysis so we cankind of take a look at what our
competitors are doing.
It's helped us take a look atour practices and what we're
doing performance metrics, kpiswhere we kind of need to focus.
It's also helped with enhancingour services as far as our menu
(03:44):
of services go, allowing us tooffer more than what we were
offering maybe, say, 18, 24months ago.
And alternative feearrangements is a great example
of that where we're moving into.
Most law firms have moved awayfrom an hourly retainer and
we're into a flat feeenvironment, so the benefits of
our firm.
There are several different feearrangements that we can do,
(04:09):
but AI is really great athelping us kind of analyze that
and determining some additionalmenu of services that we can
offer.
Speaker 2 (04:18):
That's really interesting.
It sounds like AI really doeshave the potential to streamline
those operations and, you know,improve outcomes.
It sounds like for clients,patients, potentially, and
employees.
Like you said, you knowimplementing it into your own
firm, troy.
What are some of the specificareas where you are seeing AI
(04:39):
integration, particularly inthose regulated industries?
Speaker 3 (04:43):
Sure.
Thanks, simone.
A couple of different areas.
I'll start with legal.
I think legal is probably thebiggest area where you will see
AI and these large languagemodels be potentially disruptive
in change of the landscape.
So there's a lot of impactthere that you can see,
(05:06):
everything from, say, documentreview to kind of assessment and
summarization of large amountsof documents and data.
It's also very helpful, say,for generating contracts.
If you're trying to writecontracts, it's also very
helpful in preparing discoveryrequests and responses and also
(05:31):
even in terms of brief writingand legal research.
So there's a lot ofapplicability to the legal field
.
Talk more about that in aminute.
Healthcare is a really big one.
It can be used to support, youknow, critical decision making
in terms of diagnostic.
(05:52):
You know kind of analysis andalso therapeutic options.
You know being able to comparea large volume of medical
records to the medicalliterature that's out there for
suggestions on diagnosis andtreatment is really big.
It's also very helpful in termsof kind of operations and
(06:16):
efficiencies and kind of feelingout where those inefficiencies
are and how to fix them and alsojust some of the basics you
know in terms of documentationthat needs to go in a file and
kind of some of the moreclerically oriented things that
(06:36):
need to take place.
The last one I want to mentionis real estate.
Here again, you've got clientand customer service related
issues that can be the benefitfrom AI.
You've got the generation andcreation of a large amount of
marketing and sales orientedmaterial.
There's also analytics, thoughdata analytics and kind of
(07:00):
predictive analytics for realestate appraisers doing analysis
for value, but also salesagents and brokers who are
trying to come up with acompetitive price to list
property for.
So it's definitely pervasive ina wide range of industries and
regulated professions.
Speaker 2 (07:19):
Yeah, definitely sounds like it's got a lot of
potential benefits in a lot ofdifferent areas.
But, as we all know, with newtechnology always comes some
risks, and when it comes tolicensed professionals, we know
that there are strict rulesabout compliance and ethical
standards.
Troy, from that legalperspective, what are some of
(07:43):
the biggest compliance risksthat professionals should be
aware of when they are using AI?
Speaker 3 (07:49):
Well, sure, a couple of different things that I think
are worth pointing out here,and the first thing is you know,
at the end of the day, you'restill a professional.
It's still your license on theline.
Really need to think about AIas just another tool in the
toolbox, right, and so obviouslythere's going to be an
adjustment period and learninghow to incorporate that tool
(08:13):
into the bevy of services thatyou provide.
But again, at the end of theday, your obligations, your
ethics as a professional remainessentially the same, and even
though you may be using a tool,you're still the one on the hook
.
You're the one responsible.
Great example of that You'veprobably, maybe even seen this
in the news Lawyers have startedusing AI and things like
(08:38):
ChatGPT and CLAWD to help themwith legal research and also
writing briefs.
Well, lawyers have a duty and anobligation of due diligence to
know what they're submitting tothe court and confirm that those
cases are accurate and on pointand speak to the legal concepts
that they're claiming they are.
(09:00):
And there've been someinstances where people have used
chat, gpt, for example, and thecase law either doesn't exist
or doesn't stand for theproposition that the lawyer made
and the court found out andthat can actually get lawyers in
trouble.
They can be sanctioned by thecourt.
There have been referrals tostate bar for grievances, so
(09:23):
that's really a big issue.
I think that emphasizes hey, atthe end of the day, this is a
tool and you are the data thatyou're using.
Privacy, confidentialitypervades many professions and
just because you're using thisAI tool doesn't mean that those
(09:45):
obligations still don't exist.
So it's really important toconsider your confidentiality.
What are you putting into chat,gpt?
Is it client-specific data?
Is it confidential data?
You really should take a pauseand consider that very carefully
.
You need to be getting sometype of informed client consent
(10:06):
for the use of their data andrecognize the liability issues
that go with potential breaches.
You know, if I do upload datawith a client's consent into one
of these AI tools and the worsthappens and there's a breach, I
may be liable.
What do I need to do to addressthis and protect my clients?
Because many licensedprofessionals like doctors and
(10:41):
lawyers and accountants, havethose high duties, even
fiduciary duties.
Overall, I think the best wayto approach this is to remember
you're still a professional.
You're still responsible.
Ai is just one more tool inyour tool bag.
Speaker 2 (10:57):
Absolutely right, Troy.
You make a really, really greatpoint that you really can't
rely on using AI without humanoversight.
Sherry, what are some practicalsteps that license holders can
take to ensure that they'reusing AI responsibly while
staying compliant with Texasregulations?
Speaker 1 (11:17):
Well, that's an easy.
Let me just quote with greatpower comes great responsibility
, right?
So if you're going to beutilizing AI and hey, you should
be I've talked to some lawfirms and people that are in
other businesses and they'relike we're just going to kind of
sit back and we're notnecessarily looking at that.
You are going to be left in thedust, your doors are going to
be likely closed within a coupleof years, because it's very
(11:39):
similar to the people that saidthe same thing about the
internet.
Right, it's like oh, that'sfleeting, that'll pass, it's not
going to pass, it's here tostay.
And the best thing that you cando is understand it, learn
about it and make sure that youimplement the proper policies
and procedures, whether you'rejust a solo practitioner or
whether you have a large lawoffice, to make sure that
(12:01):
everybody understands what theirresponsibility is.
If I had to pick the one thingthat you should do whether,
again, you're a solopractitioner or you're a small
firm or large firm, from anoperations and strategic
standpoint, you need to have apolicy that governs AI in your
business, in your profession, inyour firm.
What is allowed, what is notallowed, what you're going to
(12:24):
use it for what you're not goingto use it for.
And when you initially roll itout, maybe you do it in steps
and processes because it is alot of information.
So when we rolled it out withour firm, we were very specific
about what it could be used forand once we were able to kind of
beta test those areas, get thefeedback.
If people became morecomfortable with it, then we'd
(12:45):
move on to utilizing it forother uses is also very
important.
So train your staff, make surethat your clients are aware and
just make sure that you're beingcompliant in every aspect of
what you're doing, becausethat's a lot of data that you're
putting out there that isconfidential, of course.
Speaker 2 (13:08):
Yeah, all really great tips, Sherry, thank you.
Ai is really evolving soquickly, and so are those rules
around it.
It's very likely that we willsee more regulations around AI
use in professional settings inthe coming years.
We're already seeing Texas rollout its Texas Responsible AI
Governance Act.
Sherry, what are some of thesetrends that you're seeing in AI
(13:31):
regulation and how might theyimpact licensed professionals in
Texas?
Speaker 1 (13:36):
Well, I think the legislation reflects the broader
global trends risk-basedapproach to AI oversights,
increased transparency and,again, accountability.
I think it's very important.
I think that we all rememberwhen ChatGPT first came out and
it went viral.
Of course, an attorney Ibelieve it was in New York it
(13:57):
went viral.
Of course, an attorney Ibelieve it was in New York who
just kind of put a case matterthrough ChatGPT, asked it to
write a brief or a motion andtook it into court.
And you know, chatgpt has atendency and other large
language models do as well tocreate information if it's not
(14:18):
there, and so you really need tomake sure again that what's
coming out of that, that you'relooking at and you're confirming
that it is actually the truth.
I also think that, usingAI-driven tools, you need to
ensure that their systems alignwith transparency, again, and
accountability.
Keeping detailed records,conducting impact assessments,
(14:39):
being prepared to intervene inAI decisions again, I think is
extremely crucial when you'relooking at implementing or
utilizing AI.
Speaker 2 (14:51):
Yeah, absolutely, and Troy, from a legal perspective,
what should professionals donow to prepare for these changes
?
What should professionals donow to prepare for these changes
?
Speaker 3 (15:00):
Well, definitely a couple of key things, I think,
and the first thing I'd say isdon't wait.
Right, If you want to staycompetitive, you need to lean
into change right, and you'vegot to do it with some
thoughtfulness about legalcompliance and what's coming
down the road.
You may want to considergetting some legal counsel, some
compliance, consulting,assistance and advice so that
(15:25):
you can properly integrate itinto your business model and
where you're headed in thefuture, because that's going to
impact your business, yourpractice, your profession.
Watch the legislative and theregulatory activity carefully.
You know you want to talk toyour representatives, talk to
your regulators and provide yourinput and feedback.
(15:47):
Right, what do you think works,what doesn't work?
Make your voice heard.
You know, kind of like ourpodcast talks about Engage right
, Because you can't complain ifyou're not part of the process.
Because you can't complain ifyou're not part of the process
(16:23):
Like you alluded to Simone,House Bill 1709, the Texas
Responsible ArtificialIntelligence, where the focus is
on responsible and reasonablecare to protect consumers, or if
you're a developer, as the billcalls it, and you have to give
certain disclosures to potentialpeople who are going to be
using that.
So, again, it's really importantyou know a lot of your baseline
obligations confidentiality,fiduciary duties, disclosure,
(16:45):
standard of care.
Those things aren't changingjust because you're using a
different tool that's helpingyou with analytics or helping
you draft things.
You really just need to look atthe future and say, okay, how
am I going to be integratingthis into this AI tool, into my
world and make sure it's covered?
(17:07):
And that's where the potentialfor getting some assistance from
legal counsel in a proactiveway can really be beneficial.
I do think, as time goes forward, we're going to see more courts
, more regulators, weigh inspecifically on the use of AI in
businesses, and you see it withthat new House, Bill 1709.
(17:29):
Texas and other courts acrossthe nation have started to weigh
in too.
So you do see some local courtrules specifying what
practitioners lawyers have to doin front of those particular
judges or courts when they'reutilizing AI.
Some of them, like the FifthCircuit, have said hey, we're
(17:50):
not going to set any specificrules because, at the end of the
day, you're the professionalresponsible.
But other courts have set veryspecific rules and some of them
even require the lawyer to signa certification affirming
certain things.
So it's definitely somethingthat people need to keep their
head on the swivel about and,like I said, lean into that
change and engage with yourregulator and with the people
(18:14):
that are making policy impactingyou.
Speaker 2 (18:17):
Absolutely, Troy.
It's very clear that AI is notgoing away.
You Absolutely, Troy.
It's very clear that AI is notgoing away, so it is really
critical for professionals tounderstand how to use it
responsibly and stay aware ofthose changes that their
lawmakers may be making.
Before we wrap up, I want toask each of you what's one key
piece of advice that you wouldgive to licensed professionals
who are considering using AI intheir practice.
(18:40):
Sherry, we'll start with you.
Speaker 1 (18:42):
Okay, this is going to sound repetitive, but we've
got to drill it in.
So, from the position ofoperational oversight, the key
piece of advice for licensedprofessionals considering AI in
their practice is to prioritizetransparency and human oversight
and yes, those are two separateones, but they are really
connected right.
Do your due diligenceThoroughly.
(19:03):
Vet all AI tools that you'regoing to be using.
Confirm that they're compliantwith industry regulations.
Maintain human involvement inhigh-stakes decisions.
Again, AI is an aid.
It is not a replacement forprofessional judgment.
Speaker 2 (19:19):
Great advice, Sherry and Troy, what would you say?
Speaker 3 (19:25):
Two key words.
One engage right.
We've talked about that already.
Don't let this pass you by.
Don't wake up and find thatyour competitors have overtaken
you or that the regulatorylandscape has changed because
you haven't made your voiceheard.
Get involved, realize what'sgoing on and see how it's going
(19:46):
to impact your business.
And then the second thing istake ownership right.
Like I've been saying, you'rethe professional.
At the end of the day, you'rethe one responsible for use of
this new tool and you need tofigure out practically how
you're going to be using this inyour business, what the legal
compliance for use of this newtool, and you need to figure out
practically how you're going tobe using this in your business,
what the legal complianceimplications of that are, and
(20:07):
then, like Sherry was stressing,develop a plan and that's where
consulting with legal counselcan really be valuable so that
you don't have any missteps orany missed legal compliance
matters that come back to biteyou later.
Speaker 2 (20:22):
Fantastic advice y'all.
Thank you so much for beinghere today sharing your
expertise, and thank you to ourlisteners.
If you found this episodehelpful, please be sure to
subscribe to Know your Regulatorfor more discussions on the
evolving landscape ofprofessional regulations, Visit
our website in the link belowfor more information and, until
(20:43):
next time, stay informed andcontinue engaging with your
regulatory agency.
Speaker 1 (20:48):
Know your Regulator.
The podcast that inspires youto engage.
This podcast is for educational purposes only, does
not constitute legal advice anddoes not create an
attorney-client relationship.
If you need legal assistanceabout a legal problem, contact
an attorney.
Speaker 2 (00:13):
Howdy and welcome to Know your Regulator, the podcast
that inspires you to engage.
I am your host, simone Murphy,and today we are diving into a
topic that is reshapingindustries across the board
artificial intelligence AI isalready being integrated into
professional practices inhealthcare, legal services,
(00:33):
finance and beyond.
But as exciting as AI'spotential is, it also brings new
compliance challenges, legalrisks and ethical considerations
that licensed professionalsneed to be aware of.
To help us break this down, I'mjoined by two experts from the
Bertolino Law Firm.
First, we have SherryMiddlemass, chief Operating
(00:54):
Officer, who has extensiveexperience in operations and
regulatory compliance.
Welcome, sherry.
Hey, thanks for having me,simone.
Also with us is Troy Bull, yourDirector of Legal Services for
the Bertolino Law Firm.
Troy specializes in regulatorycompliance and professional
license defense, making him theperfect person to help us
(01:14):
understand the legal landscapearound AI.
Thank you for being here, troy.
Speaker 3 (01:18):
Thanks, simone, excited to be here and talk
about how AI is reshaping theworld that we live in.
Speaker 2 (01:25):
Yes, so we will just jump into it.
Ai is becoming an essentialtool for professionals across
many different industries.
It's got the potential toimprove efficiency and accuracy
in so many areas, but what doesthat actually look like for
professionals in theirday-to-day practice?
Sherry, can you give us anoverview of how AI is already
(01:48):
being used in licensedprofessions and some of the
benefits that you've seen?
Speaker 1 (01:53):
Thanks, simone.
That's a great question.
So we've been using AItechnologies within our law firm
for several years and mostpeople, whether they realize it
or not, are probably using it intheirs as well.
So we're talking about chatbotson websites, self-scheduling,
ai automations that integratewith different software programs
(02:14):
, workflow automation and thesecan be very simple automations,
but they are AI, and so, as AIhas kind of really developed and
become more used and more knownto the general public over the
past what 40 years or so, we'vereally utilized it in so many
(02:37):
different ways.
So when you're talking about AI, there's different AI, and so
there's also generative AI whichhas become used with ChatGPT
and some of the other platformsthat are out there.
So from an operations standpoint, yes, automating workflow has
been a big one.
We've actually utilized AI witha lot of our operational
(02:58):
workflows.
That has saved a lot of time forour staff in administrative
processes so they can focus ondoing more substantive work.
From an executive standpoint,it's been invaluable with
helping with from strategicgrowth, looking at data and
helping us do some analytics asfar as that goes market trends,
(03:23):
competitive analysis so we cankind of take a look at what our
competitors are doing.
It's helped us take a look atour practices and what we're
doing performance metrics, kpiswhere we kind of need to focus.
It's also helped with enhancingour services as far as our menu
(03:44):
of services go, allowing us tooffer more than what we were
offering maybe, say, 18, 24months ago.
And alternative feearrangements is a great example
of that where we're moving into.
Most law firms have moved awayfrom an hourly retainer and
we're into a flat feeenvironment, so the benefits of
our firm.
There are several different feearrangements that we can do,
(04:09):
but AI is really great athelping us kind of analyze that
and determining some additionalmenu of services that we can
offer.
Speaker 2 (04:18):
That's really interesting.
It sounds like AI really doeshave the potential to streamline
those operations and, you know,improve outcomes.
It sounds like for clients,patients, potentially, and
employees.
Like you said, you knowimplementing it into your own
firm, troy.
What are some of the specificareas where you are seeing AI
(04:39):
integration, particularly inthose regulated industries?
Speaker 3 (04:43):
Sure.
Thanks, simone.
A couple of different areas.
I'll start with legal.
I think legal is probably thebiggest area where you will see
AI and these large languagemodels be potentially disruptive
in change of the landscape.
So there's a lot of impactthere that you can see,
(05:06):
everything from, say, documentreview to kind of assessment and
summarization of large amountsof documents and data.
It's also very helpful, say,for generating contracts.
If you're trying to writecontracts, it's also very
helpful in preparing discoveryrequests and responses and also
(05:31):
even in terms of brief writingand legal research.
So there's a lot ofapplicability to the legal field
.
Talk more about that in aminute.
Healthcare is a really big one.
It can be used to support, youknow, critical decision making
in terms of diagnostic.
(05:52):
You know kind of analysis andalso therapeutic options.
You know being able to comparea large volume of medical
records to the medicalliterature that's out there for
suggestions on diagnosis andtreatment is really big.
It's also very helpful in termsof kind of operations and
(06:16):
efficiencies and kind of feelingout where those inefficiencies
are and how to fix them and alsojust some of the basics you
know in terms of documentationthat needs to go in a file and
kind of some of the moreclerically oriented things that
(06:36):
need to take place.
The last one I want to mentionis real estate.
Here again, you've got clientand customer service related
issues that can be the benefitfrom AI.
You've got the generation andcreation of a large amount of
marketing and sales orientedmaterial.
There's also analytics, thoughdata analytics and kind of
(07:00):
predictive analytics for realestate appraisers doing analysis
for value, but also salesagents and brokers who are
trying to come up with acompetitive price to list
property for.
So it's definitely pervasive ina wide range of industries and
regulated professions.
Speaker 2 (07:19):
Yeah, definitely sounds like it's got a lot of
potential benefits in a lot ofdifferent areas.
But, as we all know, with newtechnology always comes some
risks, and when it comes tolicensed professionals, we know
that there are strict rulesabout compliance and ethical
standards.
Troy, from that legalperspective, what are some of
(07:43):
the biggest compliance risksthat professionals should be
aware of when they are using AI?
Speaker 3 (07:49):
Well, sure, a couple of different things that I think
are worth pointing out here,and the first thing is you know,
at the end of the day, you'restill a professional.
It's still your license on theline.
Really need to think about AIas just another tool in the
toolbox, right, and so obviouslythere's going to be an
adjustment period and learninghow to incorporate that tool
(08:13):
into the bevy of services thatyou provide.
But again, at the end of theday, your obligations, your
ethics as a professional remainessentially the same, and even
though you may be using a tool,you're still the one on the hook
.
You're the one responsible.
Great example of that You'veprobably, maybe even seen this
in the news Lawyers have startedusing AI and things like
(08:38):
ChatGPT and CLAWD to help themwith legal research and also
writing briefs.
Well, lawyers have a duty and anobligation of due diligence to
know what they're submitting tothe court and confirm that those
cases are accurate and on pointand speak to the legal concepts
that they're claiming they are.
(09:00):
And there've been someinstances where people have used
chat, gpt, for example, and thecase law either doesn't exist
or doesn't stand for theproposition that the lawyer made
and the court found out andthat can actually get lawyers in
trouble.
They can be sanctioned by thecourt.
There have been referrals tostate bar for grievances, so
(09:23):
that's really a big issue.
I think that emphasizes hey, atthe end of the day, this is a
tool and you are the data thatyou're using.
Privacy, confidentialitypervades many professions and
just because you're using thisAI tool doesn't mean that those
(09:45):
obligations still don't exist.
So it's really important toconsider your confidentiality.
What are you putting into chat,gpt?
Is it client-specific data?
Is it confidential data?
You really should take a pauseand consider that very carefully
.
You need to be getting sometype of informed client consent
(10:06):
for the use of their data andrecognize the liability issues
that go with potential breaches.
You know, if I do upload datawith a client's consent into one
of these AI tools and the worsthappens and there's a breach, I
may be liable.
What do I need to do to addressthis and protect my clients?
Because many licensedprofessionals like doctors and
(10:41):
lawyers and accountants, havethose high duties, even
fiduciary duties.
Overall, I think the best wayto approach this is to remember
you're still a professional.
You're still responsible.
Ai is just one more tool inyour tool bag.
Speaker 2 (10:57):
Absolutely right, Troy.
You make a really, really greatpoint that you really can't
rely on using AI without humanoversight.
Sherry, what are some practicalsteps that license holders can
take to ensure that they'reusing AI responsibly while
staying compliant with Texasregulations?
Speaker 1 (11:17):
Well, that's an easy.
Let me just quote with greatpower comes great responsibility
, right?
So if you're going to beutilizing AI and hey, you should
be I've talked to some lawfirms and people that are in
other businesses and they'relike we're just going to kind of
sit back and we're notnecessarily looking at that.
You are going to be left in thedust, your doors are going to
be likely closed within a coupleof years, because it's very
(11:39):
similar to the people that saidthe same thing about the
internet.
Right, it's like oh, that'sfleeting, that'll pass, it's not
going to pass, it's here tostay.
And the best thing that you cando is understand it, learn
about it and make sure that youimplement the proper policies
and procedures, whether you'rejust a solo practitioner or
whether you have a large lawoffice, to make sure that
(12:01):
everybody understands what theirresponsibility is.
If I had to pick the one thingthat you should do whether,
again, you're a solopractitioner or you're a small
firm or large firm, from anoperations and strategic
standpoint, you need to have apolicy that governs AI in your
business, in your profession, inyour firm.
What is allowed, what is notallowed, what you're going to
(12:24):
use it for what you're not goingto use it for.
And when you initially roll itout, maybe you do it in steps
and processes because it is alot of information.
So when we rolled it out withour firm, we were very specific
about what it could be used forand once we were able to kind of
beta test those areas, get thefeedback.
If people became morecomfortable with it, then we'd
(12:45):
move on to utilizing it forother uses is also very
important.
So train your staff, make surethat your clients are aware and
just make sure that you're beingcompliant in every aspect of
what you're doing, becausethat's a lot of data that you're
putting out there that isconfidential, of course.
Speaker 2 (13:08):
Yeah, all really great tips, Sherry, thank you.
Ai is really evolving soquickly, and so are those rules
around it.
It's very likely that we willsee more regulations around AI
use in professional settings inthe coming years.
We're already seeing Texas rollout its Texas Responsible AI
Governance Act.
Sherry, what are some of thesetrends that you're seeing in AI
(13:31):
regulation and how might theyimpact licensed professionals in
Texas?
Speaker 1 (13:36):
Well, I think the legislation reflects the broader
global trends risk-basedapproach to AI oversights,
increased transparency and,again, accountability.
I think it's very important.
I think that we all rememberwhen ChatGPT first came out and
it went viral.
Of course, an attorney Ibelieve it was in New York it
(13:57):
went viral.
Of course, an attorney Ibelieve it was in New York who
just kind of put a case matterthrough ChatGPT, asked it to
write a brief or a motion andtook it into court.
And you know, chatgpt has atendency and other large
language models do as well tocreate information if it's not
(14:18):
there, and so you really need tomake sure again that what's
coming out of that, that you'relooking at and you're confirming
that it is actually the truth.
I also think that, usingAI-driven tools, you need to
ensure that their systems alignwith transparency, again, and
accountability.
Keeping detailed records,conducting impact assessments,
(14:39):
being prepared to intervene inAI decisions again, I think is
extremely crucial when you'relooking at implementing or
utilizing AI.
Speaker 2 (14:51):
Yeah, absolutely, and Troy, from a legal perspective,
what should professionals donow to prepare for these changes
?
What should professionals donow to prepare for these changes
?
Speaker 3 (15:00):
Well, definitely a couple of key things, I think,
and the first thing I'd say isdon't wait.
Right, If you want to staycompetitive, you need to lean
into change right, and you'vegot to do it with some
thoughtfulness about legalcompliance and what's coming
down the road.
You may want to considergetting some legal counsel, some
compliance, consulting,assistance and advice so that
(15:25):
you can properly integrate itinto your business model and
where you're headed in thefuture, because that's going to
impact your business, yourpractice, your profession.
Watch the legislative and theregulatory activity carefully.
You know you want to talk toyour representatives, talk to
your regulators and provide yourinput and feedback.
(15:47):
Right, what do you think works,what doesn't work?
Make your voice heard.
You know, kind of like ourpodcast talks about Engage right
, Because you can't complain ifyou're not part of the process.
Because you can't complain ifyou're not part of the process
(16:23):
Like you alluded to Simone,House Bill 1709, the Texas
Responsible ArtificialIntelligence, where the focus is
on responsible and reasonablecare to protect consumers, or if
you're a developer, as the billcalls it, and you have to give
certain disclosures to potentialpeople who are going to be
using that.
So, again, it's really importantyou know a lot of your baseline
obligations confidentiality,fiduciary duties, disclosure,
(16:45):
standard of care.
Those things aren't changingjust because you're using a
different tool that's helpingyou with analytics or helping
you draft things.
You really just need to look atthe future and say, okay, how
am I going to be integratingthis into this AI tool, into my
world and make sure it's covered?
(17:07):
And that's where the potentialfor getting some assistance from
legal counsel in a proactiveway can really be beneficial.
I do think, as time goes forward, we're going to see more courts
, more regulators, weigh inspecifically on the use of AI in
businesses, and you see it withthat new House, Bill 1709.
(17:29):
Texas and other courts acrossthe nation have started to weigh
in too.
So you do see some local courtrules specifying what
practitioners lawyers have to doin front of those particular
judges or courts when they'reutilizing AI.
Some of them, like the FifthCircuit, have said hey, we're
(17:50):
not going to set any specificrules because, at the end of the
day, you're the professionalresponsible.
But other courts have set veryspecific rules and some of them
even require the lawyer to signa certification affirming
certain things.
So it's definitely somethingthat people need to keep their
head on the swivel about and,like I said, lean into that
change and engage with yourregulator and with the people
(18:14):
that are making policy impactingyou.
Speaker 2 (18:17):
Absolutely, Troy.
It's very clear that AI is notgoing away.
You Absolutely, Troy.
It's very clear that AI is notgoing away, so it is really
critical for professionals tounderstand how to use it
responsibly and stay aware ofthose changes that their
lawmakers may be making.
Before we wrap up, I want toask each of you what's one key
piece of advice that you wouldgive to licensed professionals
who are considering using AI intheir practice.
(18:40):
Sherry, we'll start with you.
Speaker 1 (18:42):
Okay, this is going to sound repetitive, but we've
got to drill it in.
So, from the position ofoperational oversight, the key
piece of advice for licensedprofessionals considering AI in
their practice is to prioritizetransparency and human oversight
and yes, those are two separateones, but they are really
connected right.
Do your due diligenceThoroughly.
(19:03):
Vet all AI tools that you'regoing to be using.
Confirm that they're compliantwith industry regulations.
Maintain human involvement inhigh-stakes decisions.
Again, AI is an aid.
It is not a replacement forprofessional judgment.
Speaker 2 (19:19):
Great advice, Sherry and Troy, what would you say?
Speaker 3 (19:25):
Two key words.
One engage right.
We've talked about that already.
Don't let this pass you by.
Don't wake up and find thatyour competitors have overtaken
you or that the regulatorylandscape has changed because
you haven't made your voiceheard.
Get involved, realize what'sgoing on and see how it's going
(19:46):
to impact your business.
And then the second thing istake ownership right.
Like I've been saying, you'rethe professional.
At the end of the day, you'rethe one responsible for use of
this new tool and you need tofigure out practically how
you're going to be using this inyour business, what the legal
compliance for use of this newtool, and you need to figure out
practically how you're going tobe using this in your business,
what the legal complianceimplications of that are, and
(20:07):
then, like Sherry was stressing,develop a plan and that's where
consulting with legal counselcan really be valuable so that
you don't have any missteps orany missed legal compliance
matters that come back to biteyou later.
Speaker 2 (20:22):
Fantastic advice y'all.
Thank you so much for beinghere today sharing your
expertise, and thank you to ourlisteners.
If you found this episodehelpful, please be sure to
subscribe to Know your Regulatorfor more discussions on the
evolving landscape ofprofessional regulations, Visit
our website in the link belowfor more information and, until
(20:43):
next time, stay informed andcontinue engaging with your
regulatory agency.
Speaker 1 (20:48):
Know your Regulator.
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