Regulatory Compliance

SRA & CLC
AI guidance.

What your regulator expects when your firm uses AI — and how to stay on the right side of it.

SRA: What solicitors need to know

The Solicitors Regulation Authority hasn't banned AI — far from it. They've authorised the first purely AI-based law firm (Garfield.Law Ltd). But they do expect firms to demonstrate that they understand and manage the risks.

Key SRA principles for AI use

  • Client confidentiality (Principle 6) — You must ensure client data is not disclosed to third parties via AI tools without proper safeguards
  • Competence (Principle 2) — You must understand the AI tools you use, including their limitations and risks
  • Best interests of client (Principle 7) — AI must serve the client's interest, not just save the firm time
  • Proper governance — Firms should have policies covering AI use, staff training, and data handling
  • Accuracy of outputs — All AI-generated work must be checked by a qualified professional before submission or reliance
  • Self-reporting — If you've used AI in a way that breaches confidentiality, you must report this to the SRA

The SRA and CLC's position is clear: you can use AI, but you must be able to demonstrate competent, supervised, and compliant use. Ignorance is not a defence — and as the Upper Tribunal has shown, firms that get it wrong will face regulatory consequences.

CLC: Guidance for conveyancers

The Council of Licensed Conveyancers regulates the conveyancing profession separately from the SRA. While the CLC's specific guidance on AI is still evolving, the same fundamental principles apply:

CLC compliance considerations

  • Client care — AI tools must not compromise the quality of service or the client's understanding of their transaction
  • Data protection — Property transactions involve significant personal data. AI tools must comply with GDPR and the CLC's own data handling requirements
  • Transparency — Clients should be informed if AI is being used in their matter, particularly for substantive work like contract review
  • Professional indemnity — Check your PI policy covers AI-assisted work. Not all policies do
  • Supervision — Junior staff using AI tools must be adequately supervised by qualified practitioners

As AI becomes more common in property transactions — from automated title checks to AI-assisted contract reviews — CLC-regulated firms need to be ahead of the curve, not behind it.

Your compliance checklist

Whether you're SRA or CLC regulated, here are the steps every firm should take before (or alongside) adopting AI:

  • Audit your current AI use — You'd be surprised how many staff are already using AI tools without telling anyone. Find out what's actually happening.
  • Create an AI usage policy — Set clear rules about what tools can be used, for what purposes, and with what safeguards
  • Train your team — Every person in the firm needs to understand the difference between safe and unsafe AI use
  • Inform your PI insurer — Notify them that you're using (or plan to use) AI tools. Ask whether your policy covers AI-assisted work
  • Update your privacy notice — If AI tools process client data, your privacy notice should reflect this
  • Establish review processes — All AI-generated outputs must be reviewed by a qualified professional before use
  • Keep records — Document which tools you use, how you assessed them, and what training you've provided
  • Review regularly — AI tools change fast. Policies should be reviewed at least quarterly

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