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The Sunday BlindSpot | Issue 04

Updated: Jul 27

AI Washing in Legal Tech – Why Law Firms Should Be Paying Attention

A futuristic robot hangs glowing AI-themed panels on a clothesline using green pegs. The panels display symbols for artificial intelligence, a digital brain, and a circular tech interface. In the lower right, the text reads: “The Sunday BlindSpot #04” with a small green eye logo in the top right corner. The scene has a cool blue tone, suggesting a high-tech environment.

The legal tech world loves a good buzzword. And in 2025, nothing’s generating more excitement – or confusion – than artificial intelligence. From chatbots and document automation to predictive analytics and e-discovery tools, AI is everywhere… or so we’re told.

But what happens when the AI isn’t quite what it seems?

That’s where AI washing comes in – and it’s a growing problem that law firms can’t afford to ignore.


What Is AI Washing?

AI washing is when a company overstates, misrepresents, or outright fabricates the role of artificial intelligence in its product or service. Think of it as the tech-world cousin of greenwashing – making something sound smarter, more cutting-edge, or more automated than it really is.


Some common examples:


  • A “fully AI-powered” platform that actually relies on human reviewers behind the scenes.

  • A product claiming “machine learning” that’s just running on rigid, rule-based logic.

  • Marketing that suggests insight or decision-making from AI that the software simply can’t deliver.


Regulators are taking note. The US Securities and Exchange Commission (SEC) has already penalised companies like Presto Automation, Delphia, and Global Predictions for misleading investors about their AI capabilities. These aren’t isolated cases – they signal a trend.


Why Should Law Firms Care?

At first glance, this might seem like a tech vendor problem. But it has direct implications for law firms – especially those investing heavily in legal tech.

Here’s why it matters:


1. You might not be getting what you paid for.

If you’re choosing a tool based on its shiny AI label – and that AI turns out to be smoke and mirrors – that’s a risk. Time, budget, internal credibility… all on the line.


2. You could (accidentally) mislead clients or regulators.

As firms embed AI into client-facing services (think contract review tools, bots, or virtual assistants), the accuracy of your own messaging becomes critical. If you claim the tool is “AI-powered” and it’s not, that’s a liability – not a feature.


3. Your ethical obligations don’t go away.

Lawyers have a duty to understand the tools they use – especially those that impact advice or outcomes. Relying on unverified claims could land you on the wrong side of professional standards.


This Week’s BlindSpot: The Hype Trap

It’s easy to get swept up in the promise of progress – especially when it’s wrapped in slick branding and buzzwords.


But for many firms, the real blind spot isn’t the technology itself – it’s the uncritical acceptance of what that technology claims to be.


Whether it’s “AI-powered,” “next-gen,” or “transformative,” persuasive marketing can create a false sense of confidence and urgency. That’s how expensive mistakes get made.

This week’s reminder: Don’t confuse ambition with accuracy. Look past the pitch. Ask the awkward questions. And make sure what you’re buying is built on substance – not just sizzle.


What Law Firms Should Be Doing

This isn’t about steering clear of AI. It’s about adopting it smartly – with curiosity, clarity, and a bit of healthy scepticism.


✅ Ask better questions.


Don’t stop at “Is it AI?” Ask:

  • What type of AI is it – machine learning, NLP, large language model?

  • How was it trained, tested, and validated?

  • Is human input still involved?

  • Is it proprietary AI or built on third-party engines (e.g. OpenAI)?


✅ Document your due diligence.


Keep track of what was claimed, what you asked, and how you validated it. It protects you – and gives your team a clearer picture of what the tool actually does.


✅ Be careful with your own messaging.


If you’re telling clients your firm “uses AI to review contracts in seconds,” make sure that’s accurate. Clear communication builds trust. Hype, not so much.


✅ Train your teams.


You don’t need your lawyers to code, but they do need to understand what AI is – and isn’t. A short internal briefing or lunch-and-learn can go a long way.


AI Is Here – But Oversight Matters

We’re moving past the novelty phase of AI in legal. Clients expect it. Vendors promise it. But that also means the bar is higher – for truth, transparency, and accountability.


AI doesn’t need to do everything. Sometimes a reliable, well-designed tool with smart logic is the better choice. The key is knowing what’s under the hood – and choosing based on value, not just vocabulary.


Final Thought:

Don’t fall for the shiny sticker. “AI-powered” is not a guarantee of value – or even accuracy. As legal tech matures, firms that adopt with clarity, care, and common sense will stand out for the right reasons.



Want to discuss the impact of AI in your law firm. Book a free 30-minute discovery consultation, to explore how BLindSpot Solutionscan add value to your legal tech and AI journey.



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