Banks' AI access ban warns firms

Some of Britain's largest banks, including HSBC and Barclays, have implemented restrictions on AI agents accessing customer accounts. This has raised concerns within the legal profession regarding the management of client funds, as highlighted by Shieldpay, a payments provider partnered with over 40 top UK law firms. The firm points to incidents in the legal sector where AI mismanagement has led to disciplinary actions, a clear indication of potential pitfalls as AI adoption grows.

Shieldpay's Chief Technology Officer Simon Goodyear commented that the adoption of AI across law firms has reached unprecedented levels, creating simultaneous benefits and risks. He noted: “The uptake of AI among law firms has been stratospheric, but it is also creating risks for the industry.” Goodyear also expressed that the rise of agentic AI, which operates independently of human input, might create significant challenges, especially regarding how law firms secure mandates for bots tasked with processing client payments. The risk of bots acting beyond their permissions is a central concern, given several recent cases of unauthorised AI system access.

Goodyear remarked: “Firms need to be clear about the risks, because mistakes could prove costly.” As many legal professionals recognise the benefits of generative AI—with 94% reportedly utilising it—there is an increasing need for stringent oversight. Given the overarching trend of firms acting on behalf of clients, he noted that law firms could be strategically positioned to manage these emerging technologies effectively.

Despite banks’ proactive measures to curtail AI presences, Goodyear anticipates that AI agents will soon play a role in authorising payments, stating, “I think we will see agents authorising payments in the near future. Customers will want it, and they will most likely get it.” He cautioned, however, that while AI presents opportunities, it also entails substantial risks for client money management. “An agent working within a clear mandate doesn’t get tired at 5pm on a Friday or skip a check under pressure.”

For law firms unsure of safe AI integration, Shieldpay encourages a review of the Solicitors Regulation Authority's guidance regarding technology use, emphasising the importance of understanding the associated risks. As legal professionals navigate these advances, they must balance the push for innovation with the fundamental need to protect client interests.