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AI Use Among Lawyers Hits 80% –
Have you heard about this artificial intelligence thing? AI for short. Like many other industries, the legal profession is swiftly embracing AI. Usage has jumped from 22% in 2024 to 80% in 2025. This finding is courtesy Embroker’s 2025 Risk Index. The survey of 245 US legal professionals reveals that firms are employing AI for a wide range of tasks. From enhancing services, automating client interactions, and strengthening cybersecurity measures, it seems clear when it comes to the legal industry’s AI Adoption – Court is in session.
“Legal professionals are rapidly integrating AI into their workflows,” notes Andy Lea, Chief Insurance Officer at Embroker. “But this surge introduces novel professional liability risks that firms must proactively manage.”
Increased AI Use Brings Heightened Cyber Risks
As law firms widely adopt AI, cybersecurity threats surge. The report highlights key concerns, including malpractice suits linked to wrongful AI use, data privacy breaches, and misuse leading to ethical violations. Specifically, 43% worry that over-reliance on AI will lead to liability claims. Another 38% fear breaches compromising client data.
“Proactive risk management, clarity in protective strategies, and intentional integration of AI will be essential as the profession continues to evolve.”
The Legal Industry’s 2025 Risk Index – Embroker
“It’s critical for firms to ensure they have guidelines governing AI use,” advises Lea. Increased comfort with AI correlates with a clearer understanding of associated cybersecurity challenges, such as the emerging threat of LLMjacking.
Law Firms Face New Threat: LLMjacking
Law firms that have already embraced AI now face LLMjacking threats, where attackers hijack cloud-based AI models. As we have previously reported, LLMjacking involves malicious actors exploiting compromised AI systems for unethical purposes. These can include data poisoning and data theft. Embroker’s findings underscore the importance of specialized cyber insurance covering these new threats, aligning with insurers like QBE’s proactive AI coverage.
Cyber Insurance Protections
With artificial intelligence adoption, law firms are increasingly aware of the importance of cyber insurance protections. Most respondents (77%) are confident that their overall insurance adequately covers them. Dedicated cyber insurance is increasingly viewed as essential, reflecting a clear shift toward better risk management.
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Strategic Shifts Towards Risk and Resilience
In 2025, law firms show greater strategic risk-taking and increased optimism regarding business resilience. Top priorities include infrastructure improvements, technological support, and revenue growth, marking a shift from previous concerns about staffing or networking. Lea explains, “Firms see insurance not merely as protection, but as a strategic asset enabling innovation.”
Internal Challenges: Reputation and Liability
The report reveals that law firms face significant internal challenges, including reputational risks and employment-related claims such as harassment and wrongful termination, which affect 47% of respondents. Equally concerning are public controversies and employee disputes. All of these have replaced “rising cost of business” as top concerns.
Additionally, the increasing number of malpractice suits linked to undisclosed or wrongful AI use highlights evolving professional liability risks, prompting more firms to expand their coverage. Nearly half (45%) of law firms plan to upgrade their insurance, up from just 14% the previous year.
External Risks Shift from Economy to Technology
Externally, law firms cite the adoption of disruptive technology and professional liability as their leading concerns. Embroker notes that economic worries, such as inflation, have fallen sharply, indicating growing concern over adapting to new technologies like AI. The risk of cybersecurity breaches remains significant, coming in third as a concern for 40% of respondents.
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Lawyers Embrace Risk as Opportunity
In a significant shift in attitude, 37% of law firms now view risk as an opportunity for growth. That compares to 18% in the previous year. Another 23% claim they fully embrace risk. Firms strategically embrace new risks presented by technology, insurance coverage, and market opportunities, demonstrating enhanced confidence in navigating potential pitfalls.
Mitigating AI and Cyber Risks
The report emphasizes that proactive risk management, noting clear guidelines for AI, and comprehensive cyber insurance will be crucial as the legal sector further adopts AI.
Strict usage protocols, regular audits, and transparent client communications regarding AI-generated outputs are needed. Insurance must be regularly reviewed and updated to match evolving threats.
Andy Lea summarizes the scenario effectively: “The increased confidence we’re seeing stems from firms becoming strategic about risk, using insurance as a tool for innovation and security.”
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FAQs on Legal Industry AI Adoption & Cyber Risks
What is the current level of AI adoption among legal professionals? AI use increased dramatically from 22% in 2024 to 80% in 2025.
What are the main cybersecurity concerns from increased AI use? Malpractice suits, data breaches, ethical misuse of AI, and emerging threats like LLMjacking.
What is LLMjacking and why is it relevant to law firms? LLMjacking involves attackers hijacking cloud-based AI systems, posing significant cybersecurity threats as firms increase AI adoption.
How has the attitude toward risk shifted among law firms? Firms increasingly view risk strategically, with 37% seeing it as an opportunity for growth.
Are legal professionals confident in their current cyber insurance coverage? Yes, 77% believe their current insurance policies adequately cover their greatest business risks.
What are the top internal challenges for law firms in 2025? Reputational issues and employment-related claims, each affecting 47% of firms.
Embroker’s 2025 Risk Index provides a clear picture of an industry rapidly embracing AI, acknowledging its benefits and risks. As AI adoption surges and becomes a norm, proactive cyber insurance and stringent AI usage policies become increasingly vital. Firms adapting strategically to technology and risk stand ready for sustained resilience in an evolving digital landscape.
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