Beyond the Algorithm: Responsible AI Use for Licensed Professionals

Transcript

Speaker 1: 0:01

This podcast is for educational purposes only, does not constitute legal advice and does not create an attorney-client relationship. If you need legal assistance about a legal problem, contact an attorney.

Speaker 2: 0:13

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 reshaping industries across the board artificial intelligence AI is already being integrated into professional practices in healthcare, legal services, finance and beyond. But as exciting as AI’s potential is, it also brings new compliance challenges, legal risks and ethical considerations that licensed professionals need to be aware of. To help us break this down, I’m joined by two experts from the Bertolino Law Firm. First, we have Sherry Middlemass, chief Operating Officer, who has extensive experience in operations and regulatory compliance. Welcome, sherry. Hey, thanks for having me, simone. Also with us is Troy Bull, your Director of Legal Services for the Bertolino Law Firm. Troy specializes in regulatory compliance and professional license defense, making him the perfect person to help us understand the legal landscape around AI. Thank you for being here, troy.

Speaker 3: 1:18

Thanks, simone, excited to be here and talk about how AI is reshaping the world that we live in.

Speaker 2: 1:25

Yes, so we will just jump into it. Ai is becoming an essential tool for professionals across many different industries. It’s got the potential to improve efficiency and accuracy in so many areas, but what does that actually look like for professionals in their day-to-day practice? Sherry, can you give us an overview of how AI is already being used in licensed professions and some of the benefits that you’ve seen?

Speaker 1: 1:53

Thanks, simone. That’s a great question. So we’ve been using AI technologies within our law firm for several years and most people, whether they realize it or not, are probably using it in theirs as well. So we’re talking about chatbots on websites, self-scheduling, ai automations that integrate with different software programs, workflow automation and these can be very simple automations, but they are AI, and so, as AI has kind of really developed and become more used and more known to the general public over the past what 40 years or so, we’ve really utilized it in so many different ways. So when you’re talking about AI, there’s different AI, and so there’s also generative AI which has become used with ChatGPT and some of the other platforms that are out there.

Speaker 1: 2:48

So from an operations standpoint, yes, automating workflow has been a big one.

Speaker 1: 2:55

We’ve actually utilized AI with a lot of our operational workflows.

Speaker 1: 2:59

That has saved a lot of time for our staff in administrative processes so they can focus on doing more substantive work. From an executive standpoint, it’s been invaluable with helping with from strategic growth, looking at data and helping us do some analytics as far as that goes market trends, competitive analysis so we can kind of take a look at what our competitors are doing. It’s helped us take a look at our practices and what we’re doing performance metrics, kpis where we kind of need to focus. It’s also helped with enhancing our services as far as our menu of services go, allowing us to offer more than what we were offering maybe, say, 18, 24 months ago. And alternative fee arrangements is a great example of that where we’re moving into. Most law firms have moved away from an hourly retainer and we’re into a flat fee environment, so the benefits of our firm. There are several different fee arrangements that we can do, but AI is really great at helping us kind of analyze that and determining some additional menu of services that we can offer.

Speaker 2: 4:18

That’s really interesting. It sounds like AI really does have the potential to streamline those operations and, you know, improve outcomes. It sounds like for clients, patients, potentially, and employees. Like you said, you know implementing it into your own firm, troy. What are some of the specific areas where you are seeing AI integration, particularly in those regulated industries?

Speaker 3: 4:43

Sure.

Speaker 3: 4:43

Thanks, simone. A couple of different areas. I’ll start with legal. I think legal is probably the biggest area where you will see AI and these large language models be potentially disruptive in change of the landscape. So there’s a lot of impact there that you can see, everything from, say, document review to kind of assessment and summarization of large amounts of documents and data. It’s also very helpful, say, for generating contracts. If you’re trying to write contracts, it’s also very helpful in preparing discovery requests and responses and also even in terms of brief writing and legal research. So there’s a lot of applicability to the legal field. Talk more about that in a minute.

Speaker 3: 5:42

Healthcare is a really big one. It can be used to support, you know, critical decision making in terms of diagnostic. You know kind of analysis and also therapeutic options. You know being able to compare a large volume of medical records to the medical literature that’s out there for suggestions on diagnosis and treatment is really big. It’s also very helpful in terms of kind of operations and efficiencies and kind of feeling out where those inefficiencies are and how to fix them and also just some of the basics you know in terms of documentation that needs to go in a file and kind of some of the more clerically oriented things that need to take place.

Speaker 3: 6:37

The last one I want to mention is real estate. Here again, you’ve got client and customer service related issues that can be the benefit from AI. You’ve got the generation and creation of a large amount of marketing and sales oriented material. There’s also analytics, though data analytics and kind of predictive analytics for real estate appraisers doing analysis for value, but also sales agents and brokers who are trying to come up with a competitive price to list property for. So it’s definitely pervasive in a wide range of industries and regulated professions.

Speaker 2: 7:19

Yeah, definitely sounds like it’s got a lot of potential benefits in a lot of different areas. But, as we all know, with new technology always comes some risks, and when it comes to licensed professionals, we know that there are strict rules about compliance and ethical standards. Troy, from that legal perspective, what are some of the biggest compliance risks that professionals should be aware of when they are using AI?

Speaker 3: 7:49

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’re still a professional. It’s still your license on the line. Really need to think about AI as just another tool in the toolbox, right, and so obviously there’s going to be an adjustment period and learning how to incorporate that tool into the bevy of services that you provide. But again, at the end of the day, your obligations, your ethics as a professional remain essentially 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’ve probably, maybe even seen this in the news Lawyers have started using AI and things like ChatGPT and CLAWD to help them with legal research and also writing briefs.

Speaker 3: 8:44

Well, lawyers have a duty and an obligation of due diligence to know what they’re submitting to the court and confirm that those cases are accurate and on point and speak to the legal concepts that they’re claiming they are. And there’ve been some instances where people have used chat, gpt, for example, and the case law either doesn’t exist or doesn’t stand for the proposition that the lawyer made and the court found out and that can actually get lawyers in trouble. They can be sanctioned by the court. There have been referrals to state bar for grievances, so that’s really a big issue. I think that emphasizes hey, at the end of the day, this is a tool and you are the data that you’re using.

Speaker 3: 9:29

Privacy, confidentiality pervades many professions and just because you’re using this AI tool doesn’t mean that those obligations still don’t exist. So it’s really important to consider your confidentiality. What are you putting into chat, gpt? Is it client-specific data? Is it confidential data? You really should take a pause and consider that very carefully. You need to be getting some type of informed client consent for the use of their data and recognize the liability issues that go with potential breaches. You know, if I do upload data with a client’s consent into one of these AI tools and the worst happens and there’s a breach, I may be liable. What do I need to do to address this and protect my clients? Because many licensed professionals like doctors and lawyers and accountants, have those high duties, even fiduciary duties. Overall, I think the best way to approach this is to remember you’re still a professional. You’re still responsible. Ai is just one more tool in your tool bag.

Speaker 2: 10:57

Absolutely right, Troy. You make a really, really great point that you really can’t rely on using AI without human oversight. Sherry, what are some practical steps that license holders can take to ensure that they’re using AI responsibly while staying compliant with Texas regulations?

Speaker 1: 11:17

Well, that’s an easy. Let me just quote with great power comes great responsibility, right? So if you’re going to be utilizing AI and hey, you should be I’ve talked to some law firms and people that are in other businesses and they’re like we’re just going to kind of sit back and we’re not necessarily looking at that. You are going to be left in the dust, your doors are going to be likely closed within a couple of years, because it’s very similar to the people that said the same thing about the internet. Right, it’s like oh, that’s fleeting, that’ll pass, it’s not going to pass, it’s here to stay. And the best thing that you can do is understand it, learn about it and make sure that you implement the proper policies and procedures, whether you’re just a solo practitioner or whether you have a large law office, to make sure that everybody understands what their responsibility is.

Speaker 1: 12:04

If I had to pick the one thing that you should do whether, again, you’re a solo practitioner or you’re a small firm or large firm, from an operations and strategic standpoint, you need to have a policy that governs AI in your business, in your profession, in your firm. What is allowed, what is not allowed, what you’re going to use it for what you’re not going to use it for. And when you initially roll it out, maybe you do it in steps and processes because it is a lot of information. So when we rolled it out with our firm, we were very specific about what it could be used for and once we were able to kind of beta test those areas, get the feedback. If people became more comfortable with it, then we’d move on to utilizing it for other uses is also very important. So train your staff, make sure that your clients are aware and just make sure that you’re being compliant in every aspect of what you’re doing, because that’s a lot of data that you’re putting out there that is confidential, of course.

Speaker 2: 13:08

Yeah, all really great tips, Sherry, thank you. Ai is really evolving so quickly, and so are those rules around it. It’s very likely that we will see more regulations around AI use in professional settings in the coming years. We’re already seeing Texas roll out its Texas Responsible AI Governance Act. Sherry, what are some of these trends that you’re seeing in AI regulation and how might they impact licensed professionals in Texas?

Speaker 1: 13:36

Well, I think the legislation reflects the broader global trends risk-based approach to AI oversights, increased transparency and, again, accountability. I think it’s very important. I think that we all remember when ChatGPT first came out and it went viral. Of course, an attorney I believe it was in New York it went viral. Of course, an attorney I believe it was in New York who just kind of put a case matter through ChatGPT, asked it to write a brief or a motion and took it into court. And you know, chatgpt has a tendency and other large language models do as well to create information if it’s not there, and so you really need to make sure again that what’s coming out of that, that you’re looking at and you’re confirming that it is actually the truth. I also think that, using AI-driven tools, you need to ensure that their systems align with transparency, again, and accountability. Keeping detailed records, conducting impact assessments, being prepared to intervene in AI decisions again, I think is extremely crucial when you’re looking at implementing or utilizing AI.

Speaker 2: 14:51

Yeah, absolutely, and Troy, from a legal perspective, what should professionals do now to prepare for these changes? What should professionals do now 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 is don’t wait. Right, If you want to stay competitive, you need to lean into change right, and you’ve got to do it with some thoughtfulness about legal compliance and what’s coming down the road. You may want to consider getting some legal counsel, some compliance, consulting, assistance and advice so that you can properly integrate it into your business model and where you’re headed in the future, because that’s going to impact your business, your practice, your profession. Watch the legislative and the regulatory activity carefully. You know you want to talk to your representatives, talk to your regulators and provide your input and feedback. Right, what do you think works, what doesn’t work? Make your voice heard. You know, kind of like our podcast talks about Engage right, Because you can’t complain if you’re not part of the process. Because you can’t complain if you’re not part of the process Like you alluded to Simone, House Bill 1709, the Texas Responsible Artificial Intelligence, where the focus is on responsible and reasonable care to protect consumers, or if you’re a developer, as the bill calls it, and you have to give certain disclosures to potential people who are going to be using that.

Speaker 3: 16:36

So, again, it’s really important you know a lot of your baseline obligations confidentiality, fiduciary duties, disclosure, standard of care. Those things aren’t changing just because you’re using a different tool that’s helping you with analytics or helping you draft things. You really just need to look at the future and say, okay, how am I going to be integrating this into this AI tool, into my world and make sure it’s covered? And that’s where the potential for getting some assistance from legal counsel in a proactive way can really be beneficial.

Speaker 3: 17:15

I do think, as time goes forward, we’re going to see more courts, more regulators, weigh in specifically on the use of AI in businesses, and you see it with that new House, Bill 1709. Texas and other courts across the nation have started to weigh in too. So you do see some local court rules specifying what practitioners lawyers have to do in front of those particular judges or courts when they’re utilizing AI. Some of them, like the Fifth Circuit, have said hey, we’re not going to set any specific rules because, at the end of the day, you’re the professional responsible. But other courts have set very specific rules and some of them even require the lawyer to sign a certification affirming certain things. So it’s definitely something that people need to keep their head on the swivel about and, like I said, lean into that change and engage with your regulator and with the people that are making policy impacting you.

Speaker 2: 18:17

Absolutely, Troy. It’s very clear that AI is not going away. You Absolutely, Troy. It’s very clear that AI is not going away, so it is really critical for professionals to understand how to use it responsibly and stay aware of those changes that their lawmakers may be making. Before we wrap up, I want to ask each of you what’s one key piece of advice that you would give to licensed professionals who are considering using AI in their practice. 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 of operational oversight, the key piece of advice for licensed professionals considering AI in their practice is to prioritize transparency and human oversight and yes, those are two separate ones, but they are really connected right. Do your due diligence Thoroughly. Vet all AI tools that you’re going to be using. Confirm that they’re compliant with industry regulations. Maintain human involvement in high-stakes decisions. Again, AI is an aid. It is not a replacement for professional 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 that your competitors have overtaken you or that the regulatory landscape has changed because you haven’t made your voice heard. Get involved, realize what’s going on and see how it’s going to impact your business. And then the second thing is take ownership right. Like I’ve been saying, you’re the professional. At the end of the day, you’re the one responsible for use of this new tool and you need to figure out practically how you’re going to be using this in your business, what the legal compliance for use of this new tool, and you need to figure out practically how you’re going to be using this in your business, what the legal compliance implications of that are, and then, like Sherry was stressing, develop a plan and that’s where consulting with legal counsel can really be valuable so that you don’t have any missteps or any missed legal compliance matters that come back to bite you later.

Speaker 2: 20:22

Fantastic advice y’all. Thank you so much for being here today sharing your expertise, and thank you to our listeners. If you found this episode helpful, please be sure to subscribe to Know your Regulator for more discussions on the evolving landscape of professional regulations, Visit our website in the link below for more information and, until next time, stay informed and continue engaging with your regulatory agency.

Speaker 1: 20:48

Know your Regulator. The podcast that inspires you to engage.