California SB 574: AI rules for lawyers from 2027
California has turned part of the AI ethics guidance into a statute. SB 574 was signed into law on September 30, 2026, and it takes effect on January 1, 2027. Here is what it covers, as summarized by the firms that have read the enacted text.
What it covers
- No delegating the practice of law to AI. The act adds a section to the Business and Professions Code saying a lawyer may not hand the practice of law to generative AI.
- Confidential information stays protected. Confidential, personal identifying or other nonpublic information should not go into a system that people other than the lawyer and those authorized can reach.
- Output gets checked. Lawyers are expected to review AI output and correct what is wrong.
- Citations are personally verified. A court filing should not contain a citation the responsible lawyer has not personally verified, including ones an AI tool supplied.
- Arbitrators too. Arbitrators may not delegate their decision-making to generative AI.
Commentators also point to questions the act leaves open, such as how privilege and work product apply to AI-generated material. Whether and when AI use must be disclosed changed during the bill’s drafting, so read the enacted text on that point.
How it fits with the bar’s guidance
The State Bar of California updated its practical guidance on generative AI in May 2026, adding a section on agentic AI, tools that carry out tasks on their own. The guidance is advisory. SB 574 is law. Firms in California now have both, and a firm outside California with California matters or lawyers admitted there should read both.
What a firm should be able to show by January
Each duty above is easier to meet, and to demonstrate, with a record kept as the work happens:
- which AI tools are approved, and what information may go into each;
- a check before client details are pasted into an outside tool;
- on which matter AI was used, and by whom;
- who checked the citations in a filing, and when, with the responsible lawyer’s sign-off.
The record behind each of those duties.
Candor screens text before it goes to an AI tool, logs each use to the matter, flags citations that may need a second look, and records the attorney’s sign-off. Whether your firm met the statute is a judgment for its lawyers. Candor keeps the record they will use to show it.
This is a reference summary compiled from the sources linked above. It is not legal advice and does not quote the statute. Read the enacted text of SB 574 for the exact requirements. Candor is software, not a law firm.