Law firms are confronting a growing reality: attorneys and staff are rapidly adopting AI and agentic tools outside formal IT approval, governance frameworks, or risk controls. While this “shadow AI” reflects a strong appetite for innovation and efficiency, it also introduces significant challenges related to confidentiality, data security, regulatory compliance, and firm-wide consistency. Rather than treating unauthorized AI use solely as a compliance failure, this session reframes shadow AI as a strategic signal—and an opportunity. Drawing on real-world examples, panelists will explore how leading firms are identifying informal AI adoption, assessing associated risks, and transforming ad hoc experimentation into governed, scalable, and value-driven AI strategies that strengthen competitiveness while maintaining trust and control. Discussion topics include:

• Why shadow AI is emerging across law firms—and what it reveals about unmet operational needs
• Key risk areas created by unsanctioned AI and agentic tool usage, including data leakage and ethical concerns
• Practical approaches to discovering, assessing, and prioritizing shadow AI use across the firm
• Governance models that balance innovation, usability, and risk management
• How firms can convert grassroots AI experimentation into approved workflows that deliver measurable business value