Daily legal AI news

Legal AI news Monday, October 26, 2026

Catch-up: Three stories from Oct. 21–22 that we had not covered yet. Each item shows its own date.

3 stories on AI in courts, ethics rules, regulation and legal software, each in a sentence or two with a link to the original source.

News

Appeals court reassigns diversity, equity and inclusion case to a different judge after AI errors

The Fifth Circuit on Oct. 22 vacated a Mississippi federal judge's injunction against the state's diversity, equity and inclusion (DEI) law and ordered the case reassigned to a different judge. The court said the judge's orders contained invented facts and a nonexistent case, errors the judge had blamed on a law clerk's use of AI.

Source: ca5.uscourts.gov (opens in a new tab)

News

Labor board finds fake citations in HHS brief, warns filers about AI

The Federal Labor Relations Authority said on Oct. 21 that 35 of 42 legal or record citations in a Health and Human Services brief were fictitious, erroneous or irrelevant, and that the agency may have used a generative AI tool.

Source: flra.gov (opens in a new tab)

News

8am data: small and midsize firms still bill by the hour far more than flat fees

8am, maker of MyCase and LawPay, said on Oct. 22 that 48% of the more than 60,000 law firms using those products billed only by the hour in the first half of 2026, compared with 10% that used only flat fees (vendor data). Flat fees made up 88% of invoices at traffic firms and 64% at immigration firms.

Source: 8am.com (opens in a new tab)

Summaries are written by our team from the linked sources. They are news, not legal advice.