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Government legal teams expand AI adoption as confidentiality concerns deepen

Government legal agencies are rapidly expanding AI use to offset staffing shortages, but a new Thomson Reuters Institute report shows adoption is uneven and risk-laden. Only a third of agencies use legal-specific generative AI, and just 7% use agentic AI. Nearly 80% of government lawyers worry about confidential data exposure and 73% about AI accuracy. Shadow AI is also growing, with 27% of government professionals using unauthorized tools. Smaller budgets often push agencies toward third-party SaaS or vendor-built options, raising PII exposure risks under the Privacy Act of 1974.

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