German Bar Association Flags Expanding Liability Risks as Generative AI, Cybersecurity Rules Reshape Legal Landscape
15.06.2026 - 00:51:04 | boerse-global.de
The legal profession in Germany faces a convergence of challenges from artificial intelligence, tightening cybersecurity mandates, and shifting company law, delegates heard at the German Lawyers' Association (DAV) annual congress in Freiburg. Stefan von Raumer, the DAV's president, urged practitioners to proactively shape the coming wave of regulatory changes rather than react to them.
Generative AI: A New Liability Frontier
Von Raumer singled out tools like ChatGPT and Microsoft Copilot as both an opportunity and a hazard. While many firms adopt such large language models to boost efficiency, their use creates significant exposure under Europe's General Data Protection Regulation (GDPR) and the forthcoming EU Artificial Intelligence Act. Experts at the congress warned against over-reliance on US technology providers and called for investments in digital sovereignty. Without clear standards and certification frameworks for AI tools, law firms and their clients risk undetermined liability, they argued. The DAV president stressed that the sector must shape the future or be shaped by it.
NIS-2 and Cybersecurity Demands
The EU's NIS-2 Directive on network and information security is generating a surge in advisory work, particularly for small and medium-sized industrial enterprises and energy firms. Compliance requires robust IT baseline protection, formal risk management, and functioning incident-reporting procedures. Attendees noted that deploying large language models introduces additional security gaps. The Open Web Application Security Project's (OWASP) top-10 lists provide essential guidance for management teams seeking to avoid personal liability for cybersecurity failures.
Employment Relationships: Still a Minefield
Even as technology dominates headlines, classic status questions remain a trap for the unwary. Anyone employing family members regularly with fixed hours and an agreed wage must comply with minimum wage laws, working-time recording, and social insurance obligations. Experts recommend written contracts and accurate payroll accounts. The advantages are clear: tax-deductible expenses and the buildup of statutory pension entitlements. Yet errors can trigger substantial back-payments of ancillary wage costs. Small and medium-sized businesses in particular are urged to review their practices carefully.
Company Law: Squeeze-Outs, Delisting, and Minority Rights
In corporate law, the mid-February extraordinary general meeting of Branicks Group AG approved a domination and profit-and-loss transfer agreement. Meanwhile, squeeze-out proceedings continue to occupy the courts. In the BUWOG AG case, the cash compensation per share could climb substantially above initial offers due to recognised synergy effects. The Bundesrat (upper house of parliament) has called for statutory reform in delisting situations, following the Federal Court of Justice's (BGH) abandonment of the earlier Macrotron doctrine. Without legislative intervention, minority shareholders risk losing the value of their voting rights when companies go private. Lawmakers are discussing whether to anchor mandatory compensation offers in the Stock Corporation Act or the Transformation Act.
The advisory landscape in 2026 thus blends perennial status questions with fast-moving technology-related exposures. Deep specialisation, von Raumer concluded, remains the key to managing professional liability.
