Short answer: North Carolina's 2024 Formal Ethics Opinion 1 says that, generally and as of the opinion's date, 'lawyers should avoid inputting client-specific information into publicly available AI resources.' It separates public tools from tools run on firm-owned infrastructure.
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None of these opinions addresses licensing records to an AI training buyer directly. They address lawyers putting client information into generative AI tools. Their reasoning about tools that store inputs or train on them is the closest published guidance, so we summarize what each says and what it implies.
What the opinion says
2024 FEO 1 (adopted November 1, 2024) asks whether an AI program will retain and later use what a user provides, and concludes that 'lawyers should avoid inputting client-specific information into publicly available AI resources' (NC State Bar 2024 FEO 1).
What's different in North Carolina
The opinion treats in-house tools on firm-owned servers differently, but warns that customized programs 'may continue to send information inputted into the firm-specific program back to the central program for additional use or training.'
What it implies for licensing
An AI training buyer is the opposite of an in-house tool. The opinion's caution about client-specific information points to excluding client files from any license.
Program rules still apply
Mode lists minimum team sizes of 10+ employees for legal, 15+ for accounting, medical and finance, and 50+ for all other businesses, for companies based in the US, Canada, the UK or Australia with several years of records they own (Mode). micro1 asks for 30+ employees, mostly English data, and says it is prioritizing US companies (micro1).
This is general information, not legal advice. Talk to your own attorney or compliance advisor before you share or license any records.
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Frequently asked questions
Does North Carolina have a rule specifically about selling firm data to AI?
Not that we found. The published guidance addresses lawyers' use of AI tools; we apply its reasoning.
Is client consent the answer?
Consent can permit disclosure, but it must be informed. Ethics counsel should decide whether consent is practical for your clients.
What about ABA guidance?
ABA Formal Opinion 512 (July 2024) covers lawyers' use of generative AI tools under the Model Rules.
Sources
- North Carolina State Bar, 2024 Formal Ethics Opinion 1 (adopted Nov 1, 2024)ncbar.gov
- ABA Formal Opinion 512 on generative AI tools (July 2024)americanbar.org
- ABA Model Rule 1.6, Confidentiality of Informationamericanbar.org
- Mode / BizBuyData referral pagebizbuydata.com
- micro1 company referral pagemicro1.ai
Referral-fee disclosure: we may be paid by a program if your company signs with it after using this site. General information only, not legal advice.
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