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L0 · AI basics for legal leaders7 min read

Why AI can sound right and be wrong about the law

Lawyers are trained to trust confident, well-structured writing that cites authority. Generative AI produces exactly that style, whether or not the content is true. This is why AI mistakes are dangerous in law.

Where the errors come from

  • Prediction, not lookup. A model writes what is likely to come next. If the true answer is rare or the question is unusual, it may produce something plausible but wrong.
  • Out-of-date knowledge. A model's training stops at a date. New cases, amendments and guidance may be missing.
  • Misgrounding. Legal research tools retrieve real documents and ask the model to answer from them. The model can still misread a source, cite the wrong one or state a proposition the source doesn't support.
  • Jurisdiction blur. Models mix rules from different jurisdictions unless you are specific.
  • Agreeableness. Ask a leading question and the model tends to agree with you.

How often?

A 2024 Stanford RegLab and HAI study tested leading legal research tools on a set of legal questions. Lexis+ AI and Ask Practical Law AI gave incorrect information more than 17% of the time; Westlaw AI-Assisted Research more than 34%. General chatbots did worse. The tools have changed since, and the vendors disputed parts of the method, but the lesson stands: even purpose-built legal AI makes mistakes that need a lawyer to catch.

What reduces the risk

  • Use tools that show their sources and click through to them.
  • Ask narrow questions with the jurisdiction and date.
  • Give the tool the actual documents rather than asking from memory.
  • Verify every authority before it is relied on.
  • Match the review level to the stakes (more on this in L2).

What this means for the General Counsel

What this means for a General Counsel

Treat AI output as an unverified draft, always. The risk is not that AI is usually wrong; it is that it is wrong occasionally and convincingly, and the cost of one error in a filing or board paper is high.

Two decisions follow:

  • Buy tools that show their work (linked sources, quotes from the document) so verification is fast.
  • Make verification a process, not a hope: who checks, what they check and how it is recorded. When a vendor claims "hallucination-free", ask for their test results on questions like yours.

Real example

In 2024, researchers from Stanford RegLab and the Stanford Institute for Human-Centered AI tested AI legal research tools on a benchmark set of legal queries. Lexis+ AI and Thomson Reuters' Ask Practical Law AI produced incorrect information more than 17% of the time, and Westlaw AI-Assisted Research more than 34% of the time, even though vendors had promoted retrieval-based tools as avoiding hallucinations. A peer-reviewed version was published in the Journal of Empirical Legal Studies in 2025. Source: Stanford HAI — AI on Trial: Legal models hallucinate in 1 out of 6 (or more) benchmarking queries (May 2024) ↗ · Magesh et al. — Hallucination-Free? Assessing the Reliability of Leading AI Legal Research Tools (arXiv) ↗

Use it

Quick check · 3 questions

  1. 1.A legal research tool uses retrieval from a real case database. What does that guarantee?

  2. 2.Which prompt is most likely to get a reliable answer?

  3. 3.A vendor says its legal tool is 'hallucination-free'. What should you ask for?

0 of 3 answered

Sources

Last reviewed 2026-10-01.