Security and Compliance in Enterprise Legal AI

Law firms handle some of the most sensitive information in the world: privileged communications, trade secrets, confidential business strategies, and personal data subject to strict regulatory requirements. When adopting AI tools, security and compliance must be non-negotiable priorities.

Why Security Matters More in Legal AI

Unlike other industries, law firms face unique security challenges:

Professional obligations: Lawyers have ethical duties to protect client confidentiality. A data breach can trigger professional conduct proceedings and disciplinary action, alongside the business damage.

High-value targets: Law firms hold valuable information about M&A transactions, litigation strategies, and corporate secrets. This makes them attractive targets for sophisticated attackers.

Regulatory complexity: Firms must comply with overlapping obligations under data protection laws (GDPR, UK GDPR, state privacy laws), professional conduct rules, and client-specific security requirements.

Essential Security Requirements

When evaluating legal AI vendors, look for these baseline requirements:

Data Encryption

• Encryption in transit: All data should be encrypted using TLS 1.2 or higher when moving between systems
• Encryption at rest: Data stored on servers should be encrypted using AES-256 or equivalent
• Key management: Understand who controls encryption keys and how they're protected

Access Controls

• Role-based access: Users should only see the matters they're authorised to access
• Multi-factor authentication: MFA should be mandatory, not optional
• Audit logs: Every access should be logged for security review and compliance

Infrastructure Security

• Data residency: Know where your data will be physically stored – this matters for regulatory compliance
• Physical security: Data centres should have appropriate physical access controls
• Network security: Firewalls, intrusion detection, and regular penetration testing

Key Compliance Certifications

Several certifications demonstrate that a vendor takes security seriously:

SOC 2 Type II

This is the gold standard for SaaS security. A SOC 2 Type II audit examines the effectiveness of security controls over an extended period (typically 6-12 months). Ask to see the actual report, not just a badge on a website.

GDPR Compliance

If you handle data from EU or UK clients, GDPR compliance is essential. This includes proper data processing agreements, data subject rights procedures, and appropriate technical measures.

ISO 27001

This international standard demonstrates a comprehensive, ongoing approach to information security management. It's particularly relevant for large enterprise deployments.

Critical Questions to Ask

When evaluating legal AI vendors:

1. Can we see your latest SOC 2 Type II report? A reputable vendor will share this with prospective customers under NDA.

2. Where will our data be stored? You may need data to remain in specific jurisdictions.

3. Do you use client data to train your AI models? The answer should be an unequivocal "no" for enterprise legal AI.

4. What happens to our data if we terminate the contract? You need clear data deletion procedures.

5. What are your data retention policies with LLM providers? Look for zero data retention agreements with underlying model providers and exemptions from anti-abuse monitoring to ensure no human review of your data.

Red Flags to Watch For

Be wary of vendors who:

• Can't provide security certifications or are vague about them
• Won't share details about their infrastructure and data handling
• Don't offer data residency options
• Use client data to train models without explicit consent
• Have unclear data retention and deletion policies

The Bottom Line

Your clients trust you with their most sensitive information. You have a professional obligation to extend that same care to the technology vendors you choose. Security should be a baseline requirement, not something to negotiate away for a lower price.

At Crimson, we built security into our platform from day one because we understand what's at stake. We're SOC 2 Type II attested, GDPR compliant, and we never use client data to train our models. Your data remains yours.