What do small law firms use AI for?
First drafts
Engagement letters, demand letters, client updates and routine motions from the firm’s own templates, for attorney review.
Summaries
Leases, deposition transcripts, medical records and contracts condensed with page references.
Research
Legal research tools with AI answers, checked against the cited authority.
Intake and inbox
New-matter questionnaires summarized; client email sorted with replies drafted.
Searching your matters
Plain-English questions across the firm’s own documents.
Billing narratives
Time entries tidied into readable descriptions, for review.
Legal AI tools by job, and where client data goes
| Tool type | Examples | Where client data is processed | Usual pricing |
|---|---|---|---|
| General AI assistants | ChatGPT Business, Claude Team, Microsoft 365 Copilot | The vendor’s cloud | Per user per month |
| Legal research AI | AI features from Westlaw and Lexis | The vendor’s cloud | Subscription |
| Contract review and drafting tools | Specialist legal AI products | The vendor’s cloud | Subscription, often per user |
| AI in practice-management software | For example Clio | The vendor’s cloud | Part of a per-user subscription |
| On-site private AI | AdminOnsite | A Mac mini in your office | One flat monthly price for the firm |
Examples are illustrative, not endorsements or a ranking. Check each vendor’s data terms.
What ABA Formal Opinion 512 asks
Opinion 512 applies existing Model Rules to generative AI. In short:
- Competence (Rule 1.1): understand the capabilities and limits of the tool you use, including that it can be wrong.
- Confidentiality (Rule 1.6): know whether information you enter could be disclosed or used by others. For self-learning tools, the opinion says informed consent is generally required before inputting information relating to the representation, and boilerplate in an engagement letter isn’t enough.
- Communication (Rule 1.4): tell clients about AI use when it matters to the representation or they ask.
- Candor and meritorious claims (Rules 3.1, 3.3, 8.4(c)): verify output, especially citations, before relying on it in court.
- Supervision (Rules 5.1, 5.3): set firm policies and train lawyers and staff; vet vendors.
- Fees (Rule 1.5): bill reasonably; don’t bill hourly for time not actually spent.
Our plain-English Opinion 512 checklist turns this into steps.
Running AI on an in-office box for privileged material
With AdminOnsite the models run on a Mac mini in your office, so drafting help and document search work on real matter files without sending them to an AI provider, and the box isn’t training a shared model on your matters. That changes the facts the confidentiality analysis turns on. Whether it satisfies your obligations is for you and your state bar guidance; we’re glad to answer your ethics counsel’s questions.
What doesn’t change: output still needs a lawyer’s review. The IRS’s June 2026 AI guidance notes that courts have sanctioned lawyers for filings containing fake AI-generated citations. See AdminOnsite for law firms.
Questions
Can lawyers use ChatGPT?
Yes, within the duties Opinion 512 describes: competence, confidentiality, communication, verification, supervision and reasonable fees. The confidentiality piece depends on the plan and whether client information goes into it.
Do I need client consent to use AI?
Opinion 512 says informed consent is generally required before inputting information relating to a representation into a self-learning AI tool. Your state’s rules and guidance govern; check them.
What is the best AI for a small law firm?
Research tools for research, practice-management AI for workflow, and a drafting assistant for letters and summaries. For confidential matter files, decide first where the tool may process them.
Does AdminOnsite do legal research?
No. It isn’t a case-law database. It drafts from your templates, summarizes and searches your own documents, and sorts your inbox.
What does it cost?
From $249 a month plus $299 setup for a practice of about five, up to $699 a month for 15–30 people. No per-seat fees.
Sources, checked November 13, 2026
- ABA Standing Committee on Ethics and Professional Responsibility, Formal Opinion 512: Generative Artificial Intelligence Tools (July 29, 2024)
- IRS Office of Professional Responsibility, Issue 2026-19: Introductory Guidelines for Responsible AI Use in Federal Tax Practice (June 24, 2026)
- OpenAI Help Center: ChatGPT Business overview
- Claude Help Center: What is the Team plan?
- Microsoft: Copilot plans and pricing for business