North Carolina AI Ethics Rules for Attorneys

North Carolina has taken a proactive approach to regulating attorney use of artificial intelligence, with the North Carolina State Bar issuing formal ethics opinions and guidance that establish clear expectations for lawyers integrating AI tools into their practice. The state’s framework emphasizes informed client consent and robust verification requirements, reflecting North Carolina’s commitment to protecting both client interests and the integrity of the legal profession.

North Carolina State Bar Overview

#

Regulatory Authority

#

The North Carolina State Bar is the state agency established by the North Carolina General Assembly to regulate the practice of law. Unlike many states where the bar association is a voluntary membership organization, the North Carolina State Bar has mandatory membership and disciplinary authority over all licensed attorneys.

Key Contacts:

• Website: ncbar.gov
• Ethics Hotline: (919) 828-4620
• Address: 217 E. Edenton Street, Raleigh, NC 27601

Ethics Committee

#

The North Carolina State Bar’s Ethics Committee issues formal ethics opinions interpreting the North Carolina Rules of Professional Conduct. These opinions provide authoritative guidance on emerging issues, including AI use in legal practice.

AI Ethics Guidance Status

#

Current Position

#

North Carolina has addressed AI use through its existing ethics framework, applying traditional rules to new technology. The State Bar has emphasized that:

• Existing rules apply to AI use without requiring new regulations
• Attorneys must exercise professional judgment that cannot be delegated to AI
• Informed consent from clients is required for AI use affecting their matters
• The duty of competence extends to understanding AI tools before using them

Formal Ethics Opinions

#

While North Carolina has not issued a standalone AI guidance document like California, the State Bar has addressed technology use through various formal ethics opinions that apply to AI:

• 2011 FEO 6: Cloud computing and data storage obligations
• 2012 FEO 7: Lawyer websites and advertising technology
• 2019 FEO 1: Electronic communication and confidentiality

These opinions establish principles directly applicable to AI systems, including data security, third-party vendor relationships, and confidentiality protections.

Core Ethical Obligations

#

Confidentiality (Rule 1.6)

#

North Carolina Rule of Professional Conduct 1.6 imposes stringent confidentiality obligations:

Affirmative Duties:

• Make reasonable efforts to prevent inadvertent or unauthorized disclosure
• Vet AI providers for adequate security measures
• Understand how AI systems process and store client data
• Ensure AI platforms do not use client data for training or improvement

Practical Requirements:

• Review Terms of Service before using any AI platform
• Verify data encryption and security certifications
• Confirm data retention and deletion policies
• Consider using enterprise AI solutions with enhanced privacy protections

Risk Assessment: North Carolina attorneys should evaluate:

• Sensitivity of the information being inputted
• Likelihood of disclosure by the AI platform
• Potential harm to the client if disclosure occurs
• Feasibility of additional safeguards

Competence (Rule 1.1)

#

North Carolina Rule 1.1 requires attorneys to provide competent representation, which includes:

Technical Competence:

• Understanding the capabilities and limitations of AI tools
• Recognizing that AI can produce plausible but incorrect information
• Knowing when AI use is appropriate or inappropriate for specific tasks

Verification Requirements:

• Independently verify all citations generated by AI
• Confirm quoted language matches original sources
• Check legal propositions against authoritative sources
• Shepardize or KeyCite all cited cases

Continuing Education: The North Carolina State Bar encourages attorneys to:

• Attend CLE programs on legal technology
• Stay current with AI developments in legal practice
• Develop firm-wide AI competency standards

Supervision (Rules 5.1 and 5.3)

#

North Carolina places significant emphasis on supervisory responsibilities:

Partner and Manager Obligations (Rule 5.1):

• Establish firm-wide AI policies and procedures
• Ensure adequate training on AI tools and limitations
• Create verification checkpoints before AI-generated content is filed
• Monitor compliance with AI use guidelines

Supervision of Nonlawyers (Rule 5.3):

• AI systems should be treated as nonlawyer assistants requiring supervision
• Attorneys remain responsible for AI outputs used in client matters
• Establish quality control measures for AI-assisted work
• Document verification procedures for malpractice defense

Candor to the Tribunal (Rule 3.3)

#

North Carolina Rule 3.3 prohibits:

• Making false statements of fact or law to a tribunal
• Offering evidence the lawyer knows to be false
• Failing to correct false statements previously made

AI-Specific Application:

• AI hallucinations constitute false statements if not caught
• Attorneys cannot blame AI for fabricated citations
• Verification is required before any court submission

North Carolina Rules of Professional Conduct Implicated

#

Informed Consent Requirements

#

Client Communication Obligations

#

North Carolina emphasizes the importance of client communication regarding AI use:

When Disclosure Is Required:

• AI use that materially affects the representation
• Input of confidential information into AI systems
• AI-generated content in client-facing documents
• When clients specifically ask about AI use

Elements of Informed Consent:

• Explanation of how AI will be used
• Description of potential risks and safeguards
• Discussion of alternatives to AI use
• Opportunity for client to decline AI use

Engagement Letter Provisions

#

North Carolina attorneys should consider including AI provisions in engagement letters:

• Scope of AI use in the representation
• Types of AI tools that may be employed
• Confidentiality protections in place
• Verification procedures for AI outputs
• Fee arrangements related to AI assistance

Billing Considerations

#

Fee Reasonableness Under Rule 1.5

#

North Carolina Rule 1.5 requires fees to be reasonable. For AI-assisted work:

Permissible Billing:

• Time spent crafting prompts and refining inputs
• Time spent reviewing and verifying AI outputs
• Time spent editing and improving AI-generated content
• Actual time invested in completing the work

Prohibited Billing:

• Billing for time saved by AI efficiency
• Charging manual rates for automated work
• Billing for unverified AI outputs as final work product

Client Communication:

• Discuss AI billing arrangements upfront
• Explain how AI may affect fee estimates
• Consider alternative fee arrangements for AI-assisted matters

Practical Compliance Steps for North Carolina Attorneys

#

North Carolina Court Considerations

#

Local Court Rules

#

North Carolina attorneys should monitor local court rules for AI-related requirements:

• Some federal courts in North Carolina have adopted AI disclosure requirements
• State courts may adopt similar requirements
• Check standing orders in your assigned courts
• Comply with any certification requirements for AI use

Risk of Sanctions

#

North Carolina courts have the authority to sanction attorneys for:

• Filing documents with fabricated citations
• Making false representations based on AI hallucinations
• Failing to exercise adequate supervision over AI tools
• Frivolous filings based on unverified AI content

Malpractice Insurance Implications

#

North Carolina attorneys should review their professional liability coverage:

Coverage Considerations:

• Review policy exclusions for technology-related claims
• Confirm coverage for AI-generated errors
• Disclose AI use if required by insurer
• Document verification procedures for defense purposes

Risk Management:

• Maintain detailed records of AI use and verification
• Implement firm-wide quality control measures
• Consider cyber liability coverage for data breaches
• Stay current with insurer guidance on AI use

Frequently Asked Questions

#

Resources

#

• North Carolina State Bar
• North Carolina Rules of Professional Conduct
• North Carolina State Bar Ethics Opinions
• ABA Formal Opinion 512 - National guidance on attorney AI use
• AI Hallucinations in Courts - Sanctions cases and verification requirements