September 24, 2026
Joshua Wurtzel recently authored an Expert Analysis article for Law360 examining California S.B. 574, the first state statute governing how attorneys and arbitrators use generative artificial intelligence. The legislation would impose requirements concerning confidential information, disclosure of AI use and the delegation of legal work to AI.
In “Calif. Bill Goes Too Far In Trying To Regulate Attorney AI Use,” Joshua argues that while some provisions codify professional responsibilities lawyers already have, others could broadly restrict legitimate uses of AI.
Joshua examines the bill’s confidentiality requirements, noting that its language focuses on who can technically access information rather than how well an AI platform protects it. He explains that this could create problems for attorneys using enterprise AI platforms, writing that “a California lawyer who runs a privileged document through a mainstream enterprise legal AI platform violates the statute as written.”
Furthermore, he questions the scope of the bill’s prohibition on delegating the practice of law to AI. Because the legislation does not define what constitutes the “practice of law” in this context, Joshua notes that it leaves unanswered whether AI-assisted research or drafting would constitute prohibited delegation, even when an attorney reviews and verifies the final work. “This bill doesn't say that use is fine,” he writes. “It leaves open whether any AI-assisted drafting or research is the delegation the statute forbids.”
Joshua also addresses the potential impact on arbitrators, who would face restrictions on delegating any part of their decision-making process to AI. He warns that the legislation could discourage the use of AI for tasks such as reviewing evidence, organizing exhibits and identifying inconsistencies. For attorneys more broadly, he cautions that the legislation could create a “chilling effect on AI usage in the law,” potentially leaving valuable efficiencies on the table.
Joshua concludes that firms should “build supervision and documentation into every AI workflow” as attorneys navigate the new regulatory landscape and questions whether other states will follow California’s approach.
Read the full article here or in Law360 (Subscription may be required).
Joshua Wurtzel is a partner at Schlam Stone & Dolan LLP who focuses his practice on complex commercial, real-estate, and commercial-lending litigation. He has been recognized on the Best Lawyers “Ones to Watch® in America” list in Commercial Litigation and the New York Metro Super Lawyers® "Rising Stars" list in Business Litigation.