California SB 574

California's new AI law is a reason to review your firm's setup now

SB 574 was signed on September 30, 2026 and takes effect on January 1, 2027. Here is what the enacted text says, what it does not say, and the practical setup work — tools, access, verification, disclosure and training — that helps your attorneys meet it.

The Short Version

Two dates, and why they are different

Enacted: Approved by the Governor and filed with the Secretary of State on September 30, 2026. It is Chapter 858, Statutes of 2026.

Takes effect: SB 574 is a non-urgency statute with no delayed operative date, so under Government Code section 9600(a) it takes effect on January 1, 2027.

The roughly three months in between are the useful part: enough time to find out which AI tools and features your people actually use, check who can see what goes into them, and put verification and disclosure steps into the workflows that produce court filings.

Enacted
Chapter 858, Statutes of 2026
Takes effect
Non-urgency statute · Gov. Code § 9600(a)
Sources checked
Rechecked before each update

General information about the enacted text, not legal advice. Your attorneys decide how the law applies to your practice; we help with the technical setup and training around those decisions.

What The Enacted Text Says

Five provisions that touch everyday legal work

Summarized from the chaptered bill text. The quoted lines are the statute's own words; follow the section label to read each one in full.

Bus. & Prof. Code § 6068.1(a)(1)–(2) · SEC. 1 of the bill

The attorney stays responsible

Nothing in the section reduces the attorney's duty of reasonable competence and diligence, and an attorney may not hand the practice of law over to generative AI.

An attorney shall not delegate the practice of law to generative artificial intelligence.

Bus. & Prof. Code § 6068.1(a)(3)(A) · SEC. 1 of the bill

Who can access what you put in

Confidential, personal identifying and other nonpublic information may not go into a generative AI system unless access to those inputs is restricted to the attorney and people the attorney has authorized who are bound to protect confidentiality. Subdivision (b)(2) lists what counts as personal identifying information — for example dates of birth, financial and medical information, account numbers, and addresses and phone numbers of parties, victims, witnesses and court personnel.

Not enter confidential, personal identifying, and other nonpublic information into a generative artificial intelligence system for which access … is not restricted to the attorney and persons authorized by the attorney under obligations to protect the confidentiality of the information.

Bus. & Prof. Code § 6068.1(a)(3)(B) · SEC. 1 of the bill

Verify, then correct

Attorneys must take reasonable steps to verify the accuracy of AI output — including all case and statutory citations — and to correct erroneous or hallucinated output in any material they use.

Verify the accuracy of generative artificial intelligence outputs, including, but not limited to, the accuracy of all case and statutory citations.

Bus. & Prof. Code § 6068.1(a)(3)(C) · SEC. 1 of the bill

Two different disclosure rules

For documents submitted to a court, the attorney must disclose the use of generative AI. For content provided to the public, the attorney must consider whether to disclose. One is a requirement; the other is a decision the attorney has to make and should be able to show was made.

Disclose the use of generative artificial intelligence to the court for all documents submitted to the court and consider whether to disclose the use of generative artificial intelligence if it is used to create content provided to the public.

Code Civ. Proc. § 128.7(b)(2)(A) and (g) · SEC. 3 of the bill

Personally verified citations in court papers

A brief, pleading, motion or other paper filed in court may not contain any citation the responsible attorney has not personally verified — whether or not AI produced it. Section 128.7 keeps its own notice-and-sanctions procedure, and subdivision (g) still excludes disclosures and discovery requests, responses, objections and motions.

A brief, pleading, motion, or any other paper filed in any court shall not contain any citations that an attorney responsible for submitting the pleading has not personally verified, including any citation provided by generative artificial intelligence.

Narrower provisions

Arbitrators, ADR providers and the Judicial Council

  • Code Civ. Proc. § 1282.1 — Arbitrators. An arbitrator may not delegate any part of their decisionmaking to a generative AI tool, and may not rely on AI-generated information outside the record without disclosing it to the parties beforehand and, as far as practical, letting them comment.
  • Bus. & Prof. Code § 6173 — State Bar ADR certification complaints. Amends the State Bar's voluntary program for certifying alternative dispute resolution firms, providers and practitioners, mainly to set up confidential complaint procedures. It is not a certification for AI vendors or AI tools.
  • Code Civ. Proc. § 180 — Judicial Council review. Directs the Judicial Council to publicly revisit, and revise as necessary, Standard 10.80 of the California Standards of Judicial Administration to reflect developments in generative AI.

Code websites typically show the amended and new sections after they take effect; until then, the chaptered bill is the authoritative text.

What It Does Not Say

Be wary of anyone selling a requirement the statute doesn't contain

  • It does not name, approve or ban any AI vendor or product.
  • It does not require a document called a "DPA", zero data retention, or local hardware. It sets an access condition; how a firm meets it depends on the product, the feature, the agreement and the settings.
  • It does not require buying a course, a certification or a consultant — including us.
  • It does not create an AI-vendor certification. The certification program in Business and Professions Code section 6173 is for ADR providers.
  • It does not let an AI tool, or a second AI checking the first, perform the attorney's personal citation verification.

What setup work can — and can't — do

Good configuration, documented access settings and trained staff support your attorneys' responsibilities. They do not guarantee compliance, and no website, consultant or product setting can guarantee that privilege or confidentiality is preserved in a particular matter. Those remain legal judgments for the responsible attorney, made on the facts and the agreements that actually apply.

What we can promise is the work itself: an accurate inventory, settings checked against the agreement you signed, workflows that make verification and disclosure steps hard to skip, and training that matches how your firm really works.

Readiness Self-Check

Eight setup questions to discuss with your team

This isn't a compliance score or a legal verdict. It shows which setup areas you have covered and which ones need a closer look. Answers stay in your browser — nothing is sent or stored, and there is nothing to upload.

1. We have a current list of every generative AI tool and built-in AI feature our people use for client work — including ones inside practice-management, research, email and office software.
2. For each tool, we know who can access what we type or upload: the vendor, its staff and subprocessors, connectors, logs and backups — and we have checked that against the agreement and the actual settings, not the marketing page.
3. Staff know which kinds of information may go into which tool, including the personal identifying information the statute lists.
4. Every AI-assisted workflow that produces legal work has a named responsible attorney.
5. Our filing workflow records that the responsible attorney personally verified each citation, against the version actually filed.
6. When an AI error is found, there is a way to correct it in every place the output was used, and to keep a record of the correction.
7. We have a court-disclosure step for AI-assisted filings, and a separate decision step for AI-assisted public content such as articles, posts and marketing.
8. Attorneys, staff and administrators have each had training on their part of this — using our real workflow with synthetic examples first.

An Illustrative Workflow

A paralegal preparing a motion, before and after setup

A fictional example to show the kind of change involved. Your workflow, tools and rules will differ.

Before

  1. Uses a personal chatbot account to summarize the opposing brief, pasting in party names and a witness's phone number.
  2. Asks the same chatbot for supporting cases and copies the citations into the draft.
  3. The attorney reviews the argument but assumes the citations were checked.
  4. Nobody records that AI was used, so the filing has no disclosure decision attached.

After

  1. Uses the firm's approved tool, whose access settings were checked against its agreement; the intake checklist flags personal identifying information before anything is pasted.
  2. Research comes from the firm's research platform; AI-suggested authority lands in a citation list, not straight into the brief.
  3. The responsible attorney personally verifies each citation in the list, and the verification is recorded against the version being filed. A later substantive edit reopens it.
  4. The filing checklist includes the court-disclosure step, prepared for the attorney's review.
Cloud, Local Or Hybrid?

The law sets an access condition, not a deployment model

Section 6068.1(a)(3)(A) asks whether access to what an attorney inputs is restricted to the attorney and authorized people bound to confidentiality. Any of the three approaches can be part of the answer. None of them settles it automatically.

Commercial cloud

Business and enterprise plans differ by product, feature and agreement. We check the agreement that actually applies, the admin settings, and features that change the data path — web search, connectors, file stores, agents and support access — and record what we verified and when.

Local

Running a model on firm hardware can keep prompts off outside servers. It doesn't remove everything else: runtime telemetry, update channels, remote support, backups, connectors and software licenses still need to be examined and set up.

Hybrid

Most firms end up with a mix: a governed commercial plan for general work, the research platform for authority, and sometimes a local model for particular matters or clients. The work is making sure each kind of information has an approved home that people can actually find.

See AI & LLM Adoption for commercial plans and Private & Local AI for on-premises options, including what a local setup still needs.

How We Help

Assess, implement, train — pick the starting point that fits

Each path stands on its own. Scope, fees and what's included are confirmed in writing before work starts.

1. Readiness assessment

  • Inventory of AI tools and built-in AI features in use
  • Data-path map for each tool: who can access inputs, under which agreement and settings
  • Gaps in verification, correction and disclosure workflows
  • A prioritized plan with estimated costs
Request an assessment

2. Implementation

  • Approved tools configured, with settings recorded and dated
  • Citation-verification workbench tied to document versions
  • Disclosure checklist steps for court filings and public content, for your attorneys to adopt
  • Rollback plan and acceptance tests before anyone relies on it
AI implementation

3. Role-based training

  • Attorneys: supervising AI work, personal citation verification, disclosure decisions
  • Staff: what may go into which tool, spotting errors, documenting work
  • Administrators: access, retention, connectors, offboarding
  • Synthetic exercises first, then your real workflow
Training programs

Our training is not MCLE-accredited unless a specific course says so in writing. The State Bar publishes its own generative AI guidance and training toolkit, which we reference with attribution.

Common Questions

SB 574 questions, answered plainly

When does SB 574 take effect?
It was enacted on September 30, 2026, when the Governor approved it and it was chaptered as Chapter 858, Statutes of 2026. It is a non-urgency statute with no delayed operative date, so under Government Code section 9600(a) it takes effect on January 1, 2027.
Who does it apply to?
The new Business and Professions Code section 6068.1 is written for attorneys who use generative AI to assist in the practice of law. The Code of Civil Procedure changes cover citations in papers filed in court and arbitrators' use of generative AI. How it applies to particular people, matters, and courts is a legal question for your attorneys.
Do we have to stop using AI, or move to local AI?
No. The statute doesn't ban AI tools or require a particular vendor, deployment model, or hardware. It conditions what confidential, personal identifying, and other nonpublic information may be entered on access to those inputs being restricted to the attorney and authorized people bound to protect confidentiality — and it requires verification, correction, and disclosure steps.
Does a business AI plan or a DPA satisfy the access rule automatically?
Not automatically. The question is who can actually access the inputs — the vendor and its staff, subprocessors, connectors, logs, backups, support — under the agreement and settings that apply to the specific product and features you use. A business plan, a DPA, no-training terms, or zero retention can each be part of that answer; none settles it by name alone. We map it tool by tool, and your attorneys decide.
Can an AI tool verify our citations for us?
Tools can help — citators, citation lists, and source comparisons make the work faster. But Code of Civil Procedure section 128.7(b)(2)(A) requires that citations in court filings be personally verified by the responsible attorney, including citations an AI produced. A second AI agreeing with the first doesn't count. We design workflows that record the attorney's own verification against the version filed.
Does SB 574 require disclosure on our website or marketing?
For documents submitted to a court, section 6068.1 requires disclosure of generative AI use. For content provided to the public, it requires the attorney to consider whether to disclose. That second rule is a decision step, not an automatic label — we can add it to your content workflow so the decision is made and recorded.
Will working with you make our firm compliant?
We can't promise that, and you should be cautious of anyone who does. Our work — inventory, configuration, workflow, and training — supports your attorneys' responsibilities. Whether the firm meets its legal obligations, and whether privilege or confidentiality is preserved in a given matter, are legal judgments for the responsible attorneys.
Sources And Review

Where this page comes from

Sources last checked . Next scheduled review: before , and whenever the State Bar or Judicial Council publishes related guidance.

  1. SB 574 chaptered text (Chapter 858, Statutes of 2026)Enacted text of every section summarized on this page.
  2. SB 574 status pageApproval and chaptering on September 30, 2026; non-urgency, majority vote.
  3. Government Code section 9600When a regular-session, non-urgency statute takes effect.
  4. State Bar of California — ethics and technology resourcesPractical Guidance for the Use of Generative AI (revision approved May 14, 2026, addressing agentic AI) and the State Bar's own GenAI training toolkit.

Firm Upgrade is a technology consultancy, not a law firm, and is not affiliated with the State Bar of California, the Legislature or the Judicial Council. This page is general information and isn't legal advice.

Use the time before January 1 well.

Start with an assessment of the AI tools your firm actually uses — then implement and train around what it finds.