Dan Rosenberg-Legal Considerations for AI Use in Construction

In this episode of Constructed Futures, host Hugh Seton sits down with Dan Rosenberg, principal at Much Shellist Law, to explore the legal implications of AI use in the construction industry. Dan, who brings a unique blend of in-house and private practice experience from firms like McHugh, argues that while AI is a powerful tool for efficiency—especially in contract review and project team access to legal information—it cannot replace the human elements of negotiation, persuasion, and judgment that define skilled legal work. He emphasizes that AI tools are currently best suited for identifying issues and providing information, not for making strategic decisions or navigating complex human dynamics. The conversation delves into critical legal risks, including the potential waiver of attorney-client privilege when using AI to draft communications, as seen in a recent federal case, and the dangers of confidentiality breaches when sensitive project data is uploaded to public AI platforms. Dan warns that contractors who rely on AI to interpret or modify design documents risk violating the Spear and Doctrine, thereby assuming liability for errors they didn’t create. He stresses the importance of training, governance, and human oversight to ensure AI is used responsibly and ethically. Key takeaways include: AI should be used to augment, not replace, legal and project teams; contractors must understand the limits of AI, especially regarding privilege and confidentiality; any AI-generated interpretation of design documents must be verified against the original, and any deviations should be flagged via formal RFIs; and organizations must implement clear policies to prevent accidental data leaks. The episode concludes with a strong call for balanced, informed AI adoption—leveraging its benefits while respecting its constraints and the irreplaceable value of human expertise in construction law and project execution.