Texas law firms and AI data licensing: what the ethics guidance says

What Texas ethics guidance on generative AI and client confidentiality implies for a law firm thinking about licensing records to an AI buyer.

Last updated 5 sources cited1 min read

Short answer: Texas Opinion 705 says that if a lawyer isn't reasonably satisfied a generative AI program won't reveal confidential information, the lawyer 'should—at a minimum—not input any confidential information to the program without client consultation and consent.' Texas confidentiality is governed by Rule 1.05.

On this page
  1. Read this first
  2. What the opinion says
  3. What's different in Texas
  4. What it implies for licensing
  5. Program rules still apply
  6. Frequently asked questions
  7. Sources

Read this first

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

The Professional Ethics Committee's Opinion 705 (February 2025) warns that 'self-learning' programs pose 'a risk that the confidential information a lawyer inputs to the program may be stored within the program and revealed in responses to future inquiries by third parties. That is obviously unacceptable' (Texas Opinion 705).

What's different in Texas

Texas uses Rule 1.05, which the opinion says covers both privileged information and 'all other information relating to a client or furnished by the client and acquired by the lawyer during the course of the representation.' The opinion builds on Texas Opinion 680 on cloud computing.

What it implies for licensing

A training license is designed to put records into a model. Under Opinion 705's reasoning, confidential information shouldn't go in without client consultation and consent, which leaves firm-owned operational material as the realistic scope.

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 Texas 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

  1. Professional Ethics Committee for the State Bar of Texas, Opinion 705 (Feb 2025)tcle-web.s3.amazonaws.com
  2. ABA Formal Opinion 512 on generative AI tools (July 2024)americanbar.org
  3. ABA Model Rule 1.6, Confidentiality of Informationamericanbar.org
  4. Mode / BizBuyData referral pagebizbuydata.com
  5. 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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