In the evolving landscape of legal technology, the integration of Artificial Intelligence (AI) is not just altering how tasks are performed but also how they are communicated to clients. During a recent panel at ILTACON 2026, industry experts gathered to discuss the optimal approaches for law firms when their use of AI is questioned by clients.

Donovan Bell, a board member of CLOC and a seasoned legal operations professional, emphasized that merely listing the AI tools at disposal is insufficient. Drawing an analogy to modern education systems where students must explain their problem-solving process, Bell advocates for a similar transparency in law firms' AI utilization. He recalls a particularly effective presentation by an outside counsel that detailed AI's role across the lifespan of a legal matter, showcasing cost reduction and enhanced quality, making a compelling case for deeper client engagement.

The discussion, led by Dennis Garcia, General Counsel at Litera, highlighted the increasing frequency of AI inquiries in various client interactions such as RFPs and security questionnaires. Garcia pointed out that a simplistic disclosure of AI tools used is not enough; firms need to delve deeper into how these tools are applied strategically across different cases.

Another panelist, Rahul Chhabra, Director of Applied AI at Herbert Smith Freehills Kramer, noted the critical role of technology professionals alongside lawyers in client presentations. This multidisciplinary approach not only helps in accurately representing the firm's capabilities but also in aligning with the client's specific needs and challenges.

The panelists unanimously agreed that generic responses could push clients away, urging law firms to tailor their communications about AI tools. They should focus on how AI contributes to risk management, cost optimization, and overall value addition, rather than just being a technological advancement.

Chhabra also pointed to the underutilization of data in legal settings, suggesting that firms can benefit significantly from systems like the Litera Foundation, which centralizes crucial data for more effective client engagements.

As legal firms navigate client expectations and technological advancements, the panel concluded that transparency, detailed explanations, and a clear demonstration of value from AI investments are essential. Understanding and communicating the strategic use of AI not only satisfies client curiosity but also builds a foundation for trust and continued collaboration.

In an industry where technological competence increasingly influences client perceptions and decisions, law firms are urged to refine their communication strategies concerning AI to maintain competitiveness and foster client relationships.