The Worst AI Nightmares Have Nothing To Do With Hallucinations

Above The Law's Joe Patrice covered insights from Coheso COO Manish Agnihotri at the ILTA Evolve panel, highlighting an important perspective: while hallucinations get the headlines, other AI risks deserve more attention.

Beyond the Hallucination Headlines

Media coverage of AI often focuses on hallucinations—instances where models generate plausible-sounding but incorrect information. While this is a real concern, Manish argued that other risks are potentially more damaging and less discussed.

The Risks That Keep Legal Teams Up at Night

The coverage highlighted several concerns that should rank higher than hallucinations:

1. Data security — How is sensitive information protected when using AI systems?
2. Privacy compliance — Do AI implementations meet regulatory requirements like GDPR?
3. Vendor lock-in — What happens if an AI provider changes terms or shuts down?
4. Shadow AI — Are employees using unauthorized AI tools with company data?

Why This Perspective Matters

Legal teams evaluating AI tools often focus on accuracy metrics while overlooking infrastructure and security considerations. This approach misses critical risk factors:

Security Architecture

Enterprise AI deployment requires:

• Clear data handling policies
• Encryption at rest and in transit
• Access controls and authentication
• Audit logging and monitoring

Compliance Considerations

Legal departments must ensure AI implementations comply with:

• Client confidentiality obligations
• Data protection regulations
• Industry-specific requirements
• Internal governance policies

Coheso's Approach to AI Risk

At Coheso, we address these concerns through:

• Enterprise-grade security — SOC 2 compliance, encryption, and access controls
• Data isolation — Customer data remains separate and protected
• Transparency — Clear documentation of how AI is used and what data it accesses
• Human oversight — AI assists but doesn't replace attorney judgment

The Evolving Risk Conversation

As AI adoption accelerates in legal, the industry needs mature conversations about risk that go beyond viral examples of AI mistakes. Understanding the full risk landscape helps organizations make informed decisions about AI implementation.

This story was originally covered by Above The Law. Read the full article →