The Verification Premium: How AI Is Changing Legal Ethics, Billing, and Professional Competence

 

The Verification Premium: Ethics, Billing, and Competence in the Age of Generative AI

By Alfred R. Rego Jr.    (c) March 28, 2026

As artificial intelligence accelerates legal drafting, the real professional cost may lie not in creation—but in verification.

Introduction

Artificial intelligence is rapidly changing how lawyers research, draft, and analyze legal issues. Tasks that once required hours of manual labor can now be initiated in seconds. Yet, this efficiency has produced an unexpected consequence: while AI reduces drafting time, it often exponentially increases the time required for rigorous verification.

This emerging reality is the “verification premium”—the additional professional time required to confirm the accuracy of AI-assisted work before it can be ethically relied upon or filed with a court. This development presents both a practical and ethical question for the Rhode Island bar: If AI increases efficiency but also increases the need for professional oversight, how should lawyers think about billing, supervision, and competence?

The answer lies not in inventing new rules, but in applying longstanding professional responsibility principles to these powerful new tools.

Defining the Verification Premium

The verification premium reflects a structural shift in how legal work is performed. AI may dramatically reduce the time required to generate a first draft, but that time savings is often partially offset by the lawyer’s non-delegable duty to independently confirm the accuracy of the output.

A common example illustrates the point: An AI system may produce a complex litigation motion in thirty minutes that might otherwise take several hours to draft. The lawyer must then spend significant time:

• Verifying each legal citation for accuracy;

• Confirming the context of quoted authority;

• Checking specific jurisdictional and procedural requirements; and

• Ensuring no “hallucinated” or fabricated authorities have been included.

The result is a paradox familiar to modern practitioners: work product is generated faster, yet total billable time may not decrease proportionally because professional verification remains an essential, human-led safeguard. Understanding and explaining this distinction to clients will likely become a cornerstone of billing transparency in the coming years.

Judicial Reaction and Emerging Risk

Recent sanctions decisions1 across multiple jurisdictions demonstrate that courts have little tolerance for unverified AI submissions. Attorneys have faced sanctions, fee awards, and reputational harm after submitting filings containing fabricated cases or “hallucinated” quotations.

While some courts have begun requiring specific AI-use certifications, the underlying judicial message is clear: The use of AI does not reduce a lawyer’s professional responsibility. Courts continue to treat AI errors no differently than any other failure of diligence or competence. Responsibility remains solely with the attorney whose name appears on the signature line.

Ethical Framework Under the Rhode Island Rules of Professional Conduct

The ethical questions raised by AI largely fall within existing professional responsibility principles.

Rule 1.1 – Competence

Rhode Island Rule 1.1 requires competent representation, which necessitates the legal knowledge, skill, thoroughness, and preparation reasonably necessary for the representation. Nationally, the ABA and many other jurisdictions have formally adopted a “technology clause” into Comment [8] of Rule 1.1, requiring lawyers to keep abreast of the benefits and risks associated with relevant technology. While Rhode Island has not yet formally incorporated this specific language into its comments, the underlying duty of thoroughness and preparation remains the governing standard. In the AI context, this duty inherently includes understanding the risk of “hallucinations” and implementing rigorous verification procedures before relying on AI-assisted work product.

Rules 5.1 & 5.3 – Supervisory Responsibility

Rule 5.1 requires firms and supervising lawyers to implement practices reasonably designed to ensure compliance with professional obligations. Furthermore, Rule 5.3 requires appropriate supervision of non-lawyer assistance. AI tools function similarly to junior research assistants and therefore require identical professional oversight. Lawyers must independently review AI output and remain responsible for all work submitted under their name.

• As of this writing, Rhode Island has not yet issued formal AI ethics guidance, placing responsibility squarely within existing Rules of Professional Conduct.

Risks and Benefits: A Balanced Integration

AI adoption presents real risks that require careful management, including:

• Hallucinations: Confidently presented but entirely nonexistent cases or statutes.

• Skills Degradation: The risk of weakening foundational research and synthesis skills among newer attorneys.

• Billing Scrutiny: Increased client questioning regarding how AI efficiency is reflected in final invoices.

Despite these risks, the benefits drive adoption. AI can improve access to legal services by lowering barriers for high-volume matters, enhance research by identifying overlooked patterns in litigation analytics, and improve administrative efficiency in routine tasks like contract review and discovery organization.

Practical Ethics Checklist for Lawyers Using AI

To mitigate exposure, lawyers should adopt simple risk-management habits before relying on AI-assisted work:

• Verify all citations and quoted authority against primary sources.

• Confirm key legal conclusions through independent research.

• Check for jurisdictional and procedural accuracy specific to Rhode Island courts.

• Protect confidential client information by ensuring AI tools are secure and non-public.

• Bill transparently for both the drafting efficiency and the essential verification time.

Conclusion

Lawyers have seen technological change before. From typewriters to word processors, from bookshelves to online research, each innovation promised efficiency. None altered the fundamental obligation that the lawyer—not the tool—remains responsible for the work.

Generative AI is simply the newest example of that pattern. It may change how quickly we draft, how broadly we research, and how efficiently we organize information. What it cannot change is the professional duty to ensure that what we file, advise, and bill for is accurate, defensible, and worthy of the trust placed in us.

The real divide ahead may not be between lawyers who use AI and those who do not, but between those who treat it as a shortcut and those who treat it as a tool requiring professional discipline. In that environment, speed will be common. Judgment will remain rare.

The verification premium is therefore not a temporary inconvenience. It is the modern expression of an old professional truth: the value of a lawyer has never been measured by how quickly words are produced, but by the confidence that those words can be relied upon.

References

1. See Mata v. Avianca, Inc., 678 F. Supp. 3d 443 (S.D.N.Y. 2023); Park v. Kim, 91 F.4th 610 (2d Cir. 2024) (imposing sanctions and disciplinary referrals on counsel who cited ChatGPT-generated non-existent cases without conducting reasonable inquiry under Rule 11).

2, Rhode Island Rules of Professional Conduct, Rule 1.1.

3. Rhode Island Rules of Professional Conduct, Rule 5.1.

4. Rhode Island Rules of Professional Conduct, Rule 5.3.

5. ABA Model Rules of Professional Conduct Rule 1.1, Comment [8].

6. R.I. Exec. Order No. 2024-03 (Establishing the Committee on AI and the Courts).

* Shannon McKeen, Students Can Generate Anything With AI. But Can They Tell What’s True?, Forbes (Dec. 29, 2025) (the term “verification premium” has been used to describe the increasing value of validation skills in AI-generated content environments). Mario Thomas (Ai/software engineering, board advisory) – in late 2025 – early 2026, uses “verification premium” to describe the economic advantage held by experts who can verify AI-generated code and outputs, both on his blog and in LinkedIn. Anton Tyshko (software engineering commentary) – popularizes the slogan “Code = Commodity, Verification = Premium,” applying the same idea in LinkedIn.

About the Author

Alfred R. Rego Jr. is a Rhode Island attorney practicing in Bristol since 1976, concentrating in real estate, land use, probate, and litigation matters. 

This article was prepared with the assistance of artificial intelligence research and drafting tools. All cited authorities, quotations, and legal propositions were independently confirmed by the author. AI outputs were treated as preliminary research only and were subject to traditional legal verification. 

Helpful Estate Planning Tips: Why Having a Plan Matters More Than You Think

Helpful Estate Planning Tips: Why Having a Plan Matters More Than You Think

Estate planning is not just for the wealthy. It is for anyone who wants to protect their family, avoid unnecessary legal complications, and make sure their wishes are carried out.

Yet many people delay planning because they believe they have plenty of time or think their situation is too simple to require legal documents. Unfortunately, when no plan exists, the law—not your family—decides what happens next.

Why Estate Planning Matters

Without proper planning, several problems can arise:

• The State determines who receives your assets

• Family members may face delays in Probate Court

• Unnecessary legal expenses can reduce what your heirs receive

• Individuals you would not have chosen may end up managing your affairs

• Family disputes can develop due to unclear intentions

Estate planning is not really about documents. It is about making life easier for the people you care about.

Start With a Will

If you have no estate plan at all, the first and most important step is preparing a will.

A properly drafted will allows you to:

• Decide who receives your assets

• Name the person responsible for administering your estate

• Nominate guardians for minor children

• Reduce confusion and disputes among family members

• Provide clear written instructions instead of leaving difficult decisions to others

Without a will, your estate is distributed according to state intestacy laws, which may not reflect your wishes.

Common Situations Where Planning Is Critical

Estate planning becomes especially important if you:

• Have children (particularly minor children)

• Own real estate

• Have retirement accounts or investments

• Own a business

• Are part of a blended family

• Want to leave assets to specific individuals or charities

Even simple estates benefit from clear written instructions.

Estate Planning Is More Than Just a Will

A complete estate plan often includes additional documents such as:

• Durable Power of Attorney

• Health Care Directive or Health Care Proxy

• Living Will

• Trust planning where appropriate

These documents help manage financial and medical decisions if incapacity occurs—not just at death.

A Practical Rule of Thumb

A good estate plan should answer three basic questions:

Who manages things if I cannot?

Who receives my assets?

How can I make things easier for my family?

If your current documents do not clearly answer these questions, your plan may need updating.

The Bottom Line

Estate planning is not about preparing for death. It is about protecting your family, maintaining control, and avoiding preventable legal problems.

The best time to create a plan is before it becomes necessary.

Rego & Rego Practice Tip

Estate plans should be reviewed periodically, especially after major life events such as:

• Marriage or divorce

• Birth of children or grandchildren

• Purchase or sale of real estate

• Retirement

• Significant financial changes

Even well-prepared plans should be reviewed every 3–5 years.

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Living Will vs Health Care Proxy in Rhode Island: What Medical Directives Do You Really Need?

Living Will vs. Health Care Proxy vs. Medical Directives: What Every Family Should Understand Before a Medical Crisis Occurs

One of the most common misunderstandings in estate planning is the belief that a Living Will, a Health Care Proxy, and medical directives are the same document. They are not. Each serves a distinct purpose, and together they form the legal foundation of incapacity planning.

Unfortunately, many families only discover the differences during a medical emergency, when decisions must be made quickly and emotions are already high. Proper planning avoids uncertainty and ensures that medical decisions reflect your wishes—not guesswork.

The Purpose of Advance Medical Directives

Advance directives allow you to maintain control over medical decisions if you become unable to communicate due to illness, injury, or cognitive decline.

The two most important documents are:

• Living Will

• Durable Power of Attorney for Health Care (Health Care Proxy)

Together, these documents answer two critical questions:

What are your wishes?

Who speaks for you if you cannot?

Both questions must be answered to create a complete plan.

The Living Will: Your Written Medical Instructions

A Living Will is a formal legal document that expresses your wishes concerning life-sustaining treatment in serious medical circumstances. Typically, it becomes operative when a person is terminally ill or permanently unconscious.

Rhode Island law provides guidance regarding execution requirements, including proper witnessing, and certain individuals are disqualified from serving as witnesses, including treating physicians, facility employees, heirs, and spouses.

A properly prepared Living Will commonly addresses:

• Life support and mechanical ventilation

• Dialysis treatment

• CPR and DNR instructions

• Artificial nutrition and hydration

• Pain management and comfort care

• Organ and tissue donation

• End-of-life treatment preferences

A critical point often misunderstood is this:

Declining aggressive life-prolonging treatment does not mean refusing medical care.

Most individuals still elect:

• Pain control

• Antibiotics when appropriate

• Comfort measures

• Nutrition

• Palliative care

The distinction is whether treatment is intended to prolong life at all costs or to preserve comfort and dignity.

The Health Care Proxy: Your Decision-Maker

Even the most carefully drafted Living Will cannot anticipate every medical situation. Medicine does not operate in predictable checklists.

This is why the Durable Power of Attorney for Health Care is often the most important document in incapacity planning.

This document allows you to appoint a trusted person to act as your medical decision-maker if you cannot act for yourself.

This person becomes your legal voice.

Typical authority granted to a health care agent may include:

• Making medical decisions not specifically addressed in your Living Will

• Consulting with physicians

• Accessing medical records (HIPAA authority)

• Approving or declining treatment

• Arranging transfers between facilities

• Ensuring your stated wishes are followed

• Addressing disputes if they arise

• Authorizing visitation

• Coordinating care providers

The practical reality is simple:

Documents provide instructions.

Agents provide judgment.

Both are necessary.

Why Experienced Estate Planning Always Includes Both

In practice, a Living Will without a Health Care Proxy is incomplete. Likewise, a Health Care Proxy without guidance can leave an agent uncertain.

Used together:

The Living Will provides direction.

The Health Care Proxy provides flexibility.

Without these documents, families may face delays, disagreements, or even the need for court guardianship proceedings simply to make routine medical decisions.

Proper planning prevents this outcome.

Choosing the Right Agent: A Practical Standard

The best health care agent is not always the closest relative. The best choice is the person most capable of carrying out your wishes.

Consider someone who:

• Can remain objective under stress

• Will advocate for your instructions

• Can communicate with medical providers

• Can manage family dynamics

• Understands your values

Equally important:

You should have a direct conversation with your agent about your wishes.

No document replaces that discussion.

Practical Implementation Steps

Once these documents are prepared:

• Provide copies to your physician

• Provide copies to your agent

• Inform close family members

• Keep accessible originals

• Review periodically

• Update after major life changes

Planning is not a one-time event. It is part of responsible lifetime legal maintenance.

A Practitioner’s Observation

After decades of practice, one pattern becomes clear: families rarely regret preparing these documents. They frequently regret waiting too long.

Advance medical directives are not simply legal forms. They are one of the few estate planning tools that protect both your personal dignity and your family’s emotional well-being.

The goal is simple:

To make sure your voice is heard even when you cannot speak.

That is what proper planning accomplishes.

Firm Educational Notice

This article is provided for general educational purposes and is not intended as specific legal or medical advice. Individuals should consult qualified professionals regarding their particular circumstances.

Alfred R. Rego, Jr.

Rego & Rego Attorneys at Law

Bristol, Rhode Island

#Estate Planning #Probate Administration #Real Estate #Business Law

Power of Attorney in Rhode Island: Mistakes to Avoid and Planning Tips

Power of Attorney Mistakes That Can Cost Families Thousands — And How Proper Planning Prevents Them

What you should know before giving someone legal authority over your finances or property

One of the most common estate planning mistakes is treating a Power of Attorney like a routine form. In reality, it is one of the most powerful legal documents a person will ever sign.

A properly drafted Power of Attorney can allow someone you trust to manage your affairs if you become ill, unavailable, or incapacitated. Without one, even a spouse or adult child may have no legal authority to act without going to court.

Many families only discover this problem during a crisis — when it is already too late to plan easily.

Good planning avoids that situation entirely.

Why a Power of Attorney Is Really a Protection Document

Most people associate estate planning with what happens after death. A Power of Attorney deals with something equally important — what happens if you are alive but unable to act.

Without a valid POA:

• Bills may go unpaid

• Accounts may become inaccessible

• Real estate transactions may be delayed

• Tax matters may go unattended

• Family members may need guardianship proceedings

Guardianship proceedings are often avoidable with proper planning, but without a POA they may become the only option.

The Three Most Common Types of Powers of Attorney

Understanding the structure of your document matters because each type serves a different purpose.

General Power of Attorney

Provides broad authority over financial and legal matters.

Limited Power of Attorney

Used for specific transactions such as real estate closings or defined business matters.

Durable Power of Attorney

Remains effective if incapacity occurs. This is the document most commonly used in estate planning because it ensures continuity of financial management.

Selecting the correct structure is more important than most people realize.

The Biggest Mistake: Choosing the Wrong Person

In practice, most POA problems do not come from fraud. They come from poor selection of the agent.

The right person should be:

• Trustworthy

• Financially responsible

• Organized

• Available when needed

• Able to communicate with institutions

• Capable of handling pressure

Equally important is naming successor agents in case your first choice cannot act.

This is simple planning that prevents complicated problems.

Other Common Power of Attorney Mistakes

Based on years of estate planning experience, the most frequent problems include:

• Using outdated documents

• Using generic online forms

• Failing to name backup agents

• Giving authority that is too broad or too vague

• Failing to coordinate with estate plans

• Not updating after major life changes

• Documents rejected by banks due to poor drafting

Most of these problems are preventable with careful preparation.

Why Careful Drafting Matters More Today

Financial institutions are much more cautious than they were even ten years ago. Many will closely review POAs before honoring them.

Documents often fail because they do not clearly address authority over:

• Banking and financial accounts

• Real estate authority

• Investment transactions

• Tax matters

• Digital assets

• Gift authority

• Government benefits

A document that works in theory but fails in practice defeats its purpose.

Good drafting focuses on usability, not just legality.

When You Should Review Your Power of Attorney

A POA should be reviewed periodically, particularly after:

• Marriage or divorce

• Death of an agent

• Major financial changes

• Retirement

• Relocation

• Health changes

• Changes in family relationships

Many attorneys suggest reviewing estate planning documents every 3–5 years as a practical rule.

A Practical Estate Planning Reality

The goal of a Power of Attorney is not complexity. It is continuity.

The best documents are rarely noticed because they work smoothly when needed. The problematic ones are usually those created quickly, downloaded online, or never reviewed again.

Good estate planning is less about documents and more about preventing predictable problems.

Final Thought

A Power of Attorney is ultimately a document built on trust, but supported by careful legal structure. Taking the time to prepare it properly is one of the simplest ways to protect yourself and your family from unnecessary legal complications.

Planning ahead is almost always easier than fixing problems later.

About the Author

Alfred R. Rego Jr.

Rego & Rego Attorneys at Law

Bristol, Rhode Island

Attorney Rego has over five decades of experience representing Rhode Island individuals and families in real estate, estate planning, probate, and business matters. His practice focuses on practical legal planning designed to prevent disputes and protect long-term interests.

Educational Notice: This article is provided for general informational purposes only and is not legal advice. Readers should consult qualified legal counsel regarding their individual circumstances.

© 2026 Alfred R Rego Jr.

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