The New York State Bar Association released its NYSBA Task Force Report on AI in April 2024, producing one of the most comprehensive AI ethics frameworks in the country. New York's guidance is a benchmark -- when other states eventually address AI, they will be measured against what NYSBA published.
The report matters beyond New York's borders. New York is the largest legal market in the United States, home to the majority of Am Law 100 firms, and a jurisdiction that other state bars look to for guidance. The task force addressed billing, confidentiality, disclosure, and competence with the kind of specificity that managing partners and general counsel need to build firm-wide policies.
What the Bar Says
The NYSBA Task Force Report on AI (April 2024) is among the most detailed AI ethics documents any state bar has produced. It does not create new rules but provides comprehensive interpretive guidance on how existing New York Rules of Professional Conduct apply to AI.
Key positions: AI use is permitted and increasingly expected under the competence duty (Rule 1.1). Attorneys must verify AI output and cannot delegate professional judgment to AI tools. The report frames AI as equivalent to a junior associate -- useful for drafting and research, but requiring supervision and review. The task force also endorses the growing number of New York courts that require AI disclosure in filings.
Billing Implications
New York's guidance provides the most comprehensive billing framework of any state. Key principles: fees must be reasonable under Rule 1.5, AI cost pass-through to clients must be transparent, and value billing is encouraged over hourly billing for AI-assisted work.
The practical impact: attorneys cannot bill AI processing time at hourly rates. If AI reduces a 10-hour research project to 2 hours of attorney time (directing, reviewing, editing), the client should be billed for approximately 2 hours of attorney work -- not 10. AI tool subscription costs can be passed through as expenses, but only with transparency and client consent. Firms using flat-fee or value-based models avoid the hourly-rate complication entirely, which is why the task force explicitly encourages these models.
Confidentiality Rules
New York's guidance sets a high bar for confidentiality compliance. The report includes detailed requirements for protecting client data, a vendor vetting checklist, and a clear prohibition on using consumer AI tools for confidential work.
Specific requirements: attorneys must evaluate AI vendor data handling practices before use, understand whether tools retain or train on input data, execute appropriate data protection agreements, and maintain documentation of vendor evaluations. The report prohibits inputting confidential client information into consumer-grade AI platforms (free ChatGPT, Gemini, etc.) and requires enterprise-tier tools with contractual protections. This is the most prescriptive confidentiality guidance any state bar has issued.
What's Still Unclear
The task force report is advisory -- it has not been adopted as binding ethics rules by the New York courts. This creates a gap between what the bar recommends and what is enforceable. The New York Court of Appeals has not issued AI-specific rules, though individual courts have acted independently.
Multiple New York federal and state courts already require AI disclosure in filings, but the requirements vary by courthouse. There is no uniform statewide disclosure rule. The report also does not address emerging issues like AI in e-discovery, AI-generated evidence authentication, or AI use in mediation and arbitration. These gaps will need future guidance.
The Bottom Line: New York's April 2024 task force report is the national benchmark -- comprehensive billing, confidentiality, and disclosure guidance that every firm should read regardless of jurisdiction.
AI-Assisted Research. This piece was researched and written with AI assistance, reviewed and edited by Manu Ayala. For deeper takes and the perspective behind the research, follow me on LinkedIn or email me directly.
