California enacts SB 574, first US law on attorneys' use of generative AI

California Senate Bill 574 is a state law creating the first statutory scheme governing how attorneys use generative AI in legal practice. California Governor Gavin Newsom signed Senate Bill 574, making California the first state in the nation to impose a comprehensive statutory scheme governing attorneys use of generative artificial intelligence, on September 30, 2026, with its duties taking effect January 1, 2027.

What it is

The bill adds Business and Professions Code Section 6068.1 and amends Code of Civil Procedure Section 128.7 to impose professional-conduct duties on California attorneys who use generative AI in legal work.

It was chaptered by the Secretary of State as Chapter 858, Statutes of 2026, after passing both chambers of the Legislature.

The duties apply to all attorneys licensed in California, including in-house counsel, while the citation-verification rule covers every filing in a California court regardless of where the filing attorney is licensed.

The statute does not prohibit attorneys from using generative AI; it establishes standards that attorneys must meet when using such tools for legal work.

What it requires

Attorneys may not delegate the practice of law to generative AI while existing duties of reasonable competence and diligence remain intact.

Attorneys are barred from entering confidential, personally identifying, or other nonpublic information into a generative AI system unless access is restricted to the attorney and persons authorized by the attorney under obligations to protect confidentiality.

They must take reasonable steps to verify the accuracy of generative AI outputs, including the accuracy of all case and statutory citations, and correct any erroneous or hallucinated output in any material used.

Section 6068.1 also requires attorneys who use generative AI in their practice to disclose that use to the court for all documents submitted to the court.

Separately, the law amends Code of Civil Procedure Section 128.7 to prohibit filings in any California court from containing a citation that the responsible attorney has not personally verified.

Violations may result in sanctions under Code of Civil Procedure Section 128.7, including attorney's fees and penalties, and law firms are held jointly responsible absent exceptional circumstances.

What security leaders should do

Security leaders supporting legal departments should map which generative AI tools attorneys and paralegals already use so confidential or personally identifying data is not moved into unapproved systems. Access controls and data governance reviews for any AI platform used by counsel should confirm that only the attorney and authorized, confidentiality-bound personnel can reach submitted information. Security teams should also help build logging and review workflows that make it straightforward for attorneys to demonstrate verification of AI-assisted citations and to document disclosure of AI use in court filings. Finally, outside counsel guidelines and vendor assessments for legal AI tools should be revisited jointly with the legal team before the law's effective date.