US | Incident Report
Regulatory Action
2026-01-29
California Senate passes SB 574 on lawyer verification and confidentiality for AI use
AI Model: Unspecified generative AI tool LegislationConfidentialityAI GovernanceArbitration
I. Executive Summary
The California Senate passed SB 574, a bill that would codify duties for attorneys using generative AI, including verification of AI-generated material and protections against inputting nonpublic information into public AI systems. The measure also includes constraints for arbitrators on delegating decision-making to generative AI and relying on AI-generated information outside the record without disclosure. The bill moved to the Assembly following Senate passage.
II. Key Facts
- California Senate passed SB 574 and sent it to the State Assembly.• Bill would require attorneys to take reasonable steps to verify AI-generated material and correct hallucinated output.• Bill would restrict entry of confidential/nonpublic information into public generative AI tools.• Bill would prohibit arbitrators from delegating decision-making to generative AI and require disclosure before relying on off-record AI-generated information.
III. Regulatory & Ethical Implications
If enacted, SB 574 would operationalize “human-in-the-loop‘ verification and confidentiality safeguards as statutory duties, increasing compliance obligations and potential discipline/malpractice exposure for negligent AI-assisted work; also sets a legislative model other jurisdictions may emulate.