AI in Privacy Practice: Legal Applications, Compliance and Litigation Challenges

Overview of Legal Tech and AI in Practice

Legal tech serves as a platform that bridges the gap between law and technology, offering clear, practical insights by translating complex digital regulations. The company actively shares its resources, frameworks, and real cases to connect both students and professionals. Their communication channels include LinkedIn content and podcast interviews, providing accessible information and education. The role of a tech lawyer is diverse, spanning from in-house positions to consultancy roles, and encompasses a wide range of professional responsibilities.

We were then guided through a guided exercise where a client has proposed a project to incorporate an online game branded as "Guxxti Al Game" onto their website, featuring the client's name and logo. The aim of the game is to engage visitors in an investigative challenge, utilising a chat-based interface through which participants answer questions to solve the investigation. The development and implementation are managed by an external provider, "Ubitest", which is responsible for designing the game and using the collected data for training purposes.

What we learned through this game Is that It is important to consider potential risks and strategies to prevent issues from arising in such projects, particularly regarding data protection and compliance.

Key Considerations and Best Practices in AI Adoption

The panel told us that to fully understand the case, attention should be paid to the key questions posed. On top of that currently, 69% of individual legal professionals use AI, while only 21% of firms have officially adopted it. Top concerns include accuracy (75%), reliability (56%), and data privacy (47%). Adherence to firm policies is essential for avoiding mistakes during AI adoption.

Proper use of AI tools involves learning how they function, verifying outputs, refraining from uploading confidential data, and documenting the process to ensure transparency and traceability of conclusions.

Regulatory Framework and the KYT Principle

According to Legge 132/2025, AI use in intellectual professions is permitted solely as a support tool. To maintain the fiduciary relationship, professionals must disclose which AI tools are being utilised. The KYT ("Know Your Tech") principle emphasises the importance of understanding the full spectrum of technology regulations, not just GDPR. For example, automated AI tools and applications such as automatic driving require careful consideration of data protection, location sharing, and compliance with strict employability laws, particularly in countries like Italy. Mastery of data protection involves both technical knowledge and legal expertise.

Litigation in the Digital Space

Emerging laws in the digital sphere bring new challenges, such as the need to explain technological concepts (like cookies) to judges. This generational gap presents difficulties in litigation and compliance.

Class actions within the EU, especially those related to GDPR, are governed by recently introduced laws: In the Bindl vs Commission case, the European General Court ruled in January 2025 that the European Commission must pay €400 in damages to Thomas Bindl for unlawful data transfers. The ruling established that using third-party logins (e.g., Facebook) on EU websites without adequate safeguards constitutes a violation of GDPR-level data protection.

The Somi vs Meta case involves ongoing litigation concerning AI training, indicating the growing importance of litigation in future legal practice.

AI Training and Pricing Litigation

We were told that on platforms like Instagram, it is possible to create chatbots from scratch. AI models are trained on content found across Meta social channels, which can be addictive. Determining the price of litigation has emerged to be challenging.