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AI risk: cyber threat or reputational crisis?

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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

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MOVERS & SHAKERS

Haynes Boone—Jeremy Cross

Haynes Boone—Jeremy Cross

Firm strengthens global fund finance practice with London partner hire.

DWF—Stephen Webb

DWF—Stephen Webb

Partner and head of national planning team appointed

mfg Solicitors—Nick Little

mfg Solicitors—Nick Little

Corporate team expands in Birmingham with partner hire

NEWS
Contract damages are usually assessed at the date of breach—but not always. Writing in NLJ this week, Ian Gascoigne, knowledge lawyer at LexisNexis, examines the growing body of cases where courts have allowed later events to reshape compensation
The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts
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