Kaufman Ops

AI settings for a small law firm in Kentucky

Checked against the source documents on October 26, 2026

KBA Opinion E-457 tells lawyers to read an AI product's terms of use to learn whether inputs are shared with third parties or used for the provider's own purposes. The settings that answer that are on the main checklist. This page says which ones Kentucky points at, and why.

What Kentucky has said

Kentucky Bar Association Ethics Committee (adopted by KBA Board of Governors under SCR 3.530): KBA E-457, The Ethical Use of Artificial Intelligence (AI) in the Practice of Law, 2024-03-15.

  1. Confidentiality. Continuing duty under SCR 3.130(1.6); do not input client data lacking adequate security; hypotheticals only if client cannot be identified; privilege waiver unresolved, proceed with caution (pp. 8-10).
  2. Competence. SCR 3.130(1.1) cmt. 6 duty to keep abreast of technology; as tools mature, not using an available AI tool may itself be a competence failure (pp. 4-5).
  3. Supervision. Partners and managers under SCR 3.130(5.1) must adopt AI policies covering permitted uses, risks and data protection, and train everyone handling client data; Rule 5.3 not cited by number (pp. 11-12).
  4. Fees. Reduced fee may be appropriate when AI gives a quick on-point result; AI expenses chargeable only with advance written client consent; AI learning costs are overhead (pp. 6-8).
  5. Disclosure. No duty to disclose rote AI research unless outsourced to a third party, client is charged, or court rules require it; check court rules and orders for certification requirements (pp. 1, 5-6, 10-11).
  6. Verification. Hallucinated citations named; lawyers must check pleadings for accuracy of facts and citations and correct and notify the court if an error is found (pp. 3, 10-11).

The line about the tool itself. Review the product's terms of use and provider disclaimers to learn whether inputs are shared with third parties or used for the provider's own purposes; retention by the provider must be secure; written vendor promise not to send data off-site may permit input (p. 9). (p. 9, Confidentiality section, para. 2-4)

One line from it: "There is no ethical duty more sacrosanct" (p. 8, Confidentiality section, opening sentence).

The settings that answer it

  1. Use the business plan, not a personal one. On Claude Pro, Claude Max and ChatGPT Plus, training on chats is each user's own setting. On Claude Team, ChatGPT Business and Microsoft 365 Copilot with a work sign-in, business data is not used for training by default. On the checklist
  2. Turn off the training and feedback exceptions an admin can still turn off (Claude feedback, ChatGPT personal accounts that are still in use). On the checklist
  3. Set retention on purpose instead of taking the default. On the checklist
  4. Turn on single sign-on so a lawyer who leaves loses access the same day. On the checklist
  5. Decide on connectors, apps and agents before staff add them. On the checklist
  6. Pick a rule on memory, and teach temporary or incognito chats for one-off matter questions. On the checklist
  7. Put the vendor's written terms on training, retention, subprocessors and breach notice in the file. On the checklist
  8. Write the one-page staff instruction and a note for each new hire. On the checklist
  9. Keep a verification step before anything is filed. That is a procedure, not a setting, and no vendor sells it. On the checklist
  10. Decide what the engagement letter says about AI use and billing. That is yours to write; I only flag that the opinion raises it. On the checklist

Rules around it

Technology competence: Yes. SCR 3.130(1.1) cmt. 6 (benefits and risks associated with relevant technology), quoted in E-457 p. 4; LawSites lists approval 2017-11-15 effective 2018-01-01

What this page is not

This is a tech settings page, not legal advice. The state document above is the ethics half and it is yours to read and decide on. I am not a lawyer. I link the source so you can check me.

Send me one screenshot

Crop out client names, send me a screenshot of your Claude, ChatGPT or Microsoft 365 admin settings page, and I'll write back what I'd change. Free. I never need a login.

If you want this kept current for your firm, that is the monthly desk: I watch these settings as the vendors change them and as your state changes its guidance, answer staff questions in writing, usually within one business day, and write up setup notes for each new hire. $500 a month, cancel any month.

Email nick@kaufmanops.com

Who wrote this

Nick Kaufman

I'm Nick Kaufman. I've spent six years in customer-facing technical support for SaaS, payments and CRM software, including three years at Tier 2 on a CRM built for financial advisors, whose firms work under SEC and FINRA rules. I'm not a lawyer and I don't give legal advice. I set up software so it does what the people responsible for it decided it should do.

Other states: the full list.