California SB 574: The First State Law on Lawyers' AI Use Starts January 2027

By The Professions Cloud Editors Updated October 2026 · 5 sources · 3 min read

Prices and facts checked October 13, 2026. We don't accept payment for rankings.

What happened: on September 30, 2026, Governor Gavin Newsom signed SB 574, described as "first-in-the-nation legislation" regulating how attorneys and arbitrators use generative AI (Bloomberg Law, Sep 30, 2026). It takes effect January 1, 2027 (Rev). Earlier in 2026, the State Bar also replaced its 2023 AI guidance with a version covering agentic AI (Mondaq, Jul 30, 2026).

Why it matters today: California lawyers have under three months to make sure no confidential data goes into public AI tools, that someone personally verifies every citation, and that AI use in filings is disclosed.

What SB 574 requires of attorneys

Sources: Bloomberg Law; Farella Braun + Martel.

The citation duty amends Code of Civil Procedure § 128.7, and the confidentiality duty adds Business and Professions Code § 6068.1. Courts get parameters for sanctions (Farella).

What it requires of arbitrators

Arbitrators can't delegate decision-making to AI, must verify AI-supplied sources independently, and must disclose AI-generated information from outside the record in advance, letting parties comment where practical (Farella).

The State Bar's 2026 guidance

The updated Practical Guidance, which replaces the 2023 version, adds:

• Agentic AI: systems that carry out multistep tasks, like drafting pleadings or handling intake, need meaningful human review and control
• No delegating judgment: "a lawyer cannot delegate professional judgment to AI"
• Confidentiality: review vendor terms and privacy policies before using AI on client matters
• Client communication: consider disclosing AI use at the start of and during a representation
• Billing: bill actual time; general AI subscriptions are overhead; matter-specific AI costs need fee-agreement disclosure, with no markup without informed written consent

Source: Mondaq.

Why California moved

California's courts adopted Rule 10.430 in July 2025, requiring courts that allow generative AI to have written policies. In September 2025, Noland v. Land of the Free produced a $10,000 sanction for fabricated citations (Rev; Proskauer). See the AI hallucination cases.

Your January 2027 checklist

1. Audit your AI tools: sort them into "public" and "restricted" under the statute's language, and block public tools for client work.
2. Update your cite-check process so the responsible attorney personally verifies, and records it.
3. Add an AI-disclosure step to your filing checklist, and check local rules for the format.
4. Update engagement letters to cover AI use and AI costs.
5. Train staff and contract attorneys on all of the above.

For the national baseline, see ABA Formal Opinion 512.

FAQ

Does SB 574 ban AI tools like ChatGPT?

No. It bars confidential information in public AI tools. Tools restricted to you and authorized people with confidentiality obligations are allowed.

Does it apply to non-California lawyers?

It applies to attorneys under California law and filings in California courts. Lawyers elsewhere should expect similar rules.

Is the State Bar guidance binding?

No, it's guidance. SB 574 is statute. The Bar is also considering AI amendments to the Rules of Professional Conduct.

Changelog: Oct 13, 2026: first published.