header-logo header-logo

AI risk: cyber threat or reputational crisis?

246122
AI has transformed the nature of cyber threats & also widened their audience: Jess Chan weighs up systems failures & erosion of trust

Artificial intelligence (AI) is now embedded in mainstream legal work: research, disclosure, due diligence and drafting. The regulatory conversation has largely centred on competence, supervision and confidentiality. But a more subtle shift is underway.

AI is collapsing the traditional boundary between cyber risk and reputational risk. For law firms, that distinction matters. Cyber incidents were once largely technical events, handled by IT teams and insurers. Today, AI-driven threats have an immediate public dimension: they travel fast, they are difficult to rebut in real time, and they strike directly at a firm’s credibility.

The Solicitors Regulation Authority continues to publish scam alerts involving fake solicitors and cloned identities. In 2025, it warned of a fraudster using the name and image of a genuine partner to target members of the public. Such incidents do not necessarily originate within a firm’s own

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
back-to-top-scroll