Artificial intelligence has moved from a theoretical legal risk to an active source of malpractice claims, according to EPIC Insurance Brokers & Consultants. The finding comes from the firm’s 16th Annual Lawyers’ Professional Liability Claims Survey.
The survey gathered input from senior claims executives at 13 lawyers’ professional liability insurers. Together, those insurers cover more than 80% of firms in the Am Law 200.
Seven of the 13 insurers reported an increase in AI-related claims over the past year. EPIC said insurers are tracking those claims alongside higher severity and continued losses above $100 mn.
Eileen Garczynski, principal of EPIC Law Firm Group and author of the survey, said the main concern is that AI-related malpractice exposure has become real. She said lawyers cannot delegate the duty of competence to technology.
The findings come as AI adoption spreads through the legal sector. Research from the International Bar Association found law firms increasingly use AI for administrative and operational work.
Larger firms are also using AI in more client-facing tasks. The association said lawyers expect AI to affect firm structures, hiring, and business models, which puts more pressure on training and oversight.
The survey also points to a broader shift in the malpractice environment. Garczynski said legal malpractice claim frequency is rising again after five years of relative stability.
She said severity continues to accelerate. The drivers include economic pressure, more complex work, and new risk sources such as AI that law firms are still learning to manage.
Eight of the 13 insurers reported higher claim frequency compared with the previous year. Respondents also cited continued growth in large-loss claims.
Some matters were reserved or paid above $100 mn. The survey said nine-figure legal malpractice claims are no longer viewed as rare outliers.
Insurers linked many of the largest losses to complex transactional matters. In those cases, one mistake can produce major financial consequences.
AI is drawing attention, but older malpractice exposures still drive many losses. Conflicts of interest remained the leading cause of legal malpractice claims.
Among surveyed insurers, 46% ranked conflicts as the first- or second-most common error. EPIC said conflicts remain dangerous because firms often miss them, document them poorly, or fail to revisit them as matters change.
Garczynski said courts and clients have little tolerance for conflict failures. The risk is often not intentional, but the consequences can be severe.
