President’s Message: The Impact of AI on the Legal Profession
AI-powered chatbots are well-versed in human language and can guide you through common legal challenges, making legal support easily accessible to everyone. Virtual legal assistants and chatbots, equipped with AI capabilities, are being employed to provide quick and accessible legal information to individuals. While these tools can assist with common legal queries, there are limitations in their ability to fully comprehend complex legal concepts and provide personalized advice. Artificial intelligence (AI) integration has many benefits, but it also raises a number of issues.
They first trialled this with documents relating to Brexit, initially estimating that it would take them 2,500 hours to review and make amendments. Billable hours are one of the key metrics that law firms use to gauge their effectiveness, as all of the time spent working on tasks directly related to a client’s case is considered billable hours. When firms leverage AI to accomplish administrative functions and other tasks that do not qualify as billable hours, they free up their lawyers to be more profitable. Law firms can leverage AI to analyze data on past clients such as how they found the firm, what services they were seeking, and their demographics.
The technological aspect has already made a lot of advancements in legal businesses. For instance, people can submit their arguments and evidence through a dedicated online medium. Thereby moving the judgments to the internet and reducing time in the courtrooms.
For law firms, AI reduces friction to launch new services or expand into new markets. For example, AI potentially can free up time for professionals to identify and evaluate attractive markets for expansion. For corporate departments, AI can free up their time to dedicate to supporting their organization’s strategy and growth objectives. Artificial intelligence is used by law firms and attorneys to assist in legal research, perform contract analysis and generate contracts, agreements and other legal documents. Latch uses GPT-4 to simplify the contact review and redlining process for lawyers. It offers case management, time tracking, billing, and client communication tools, too.
Understanding the technology
Blue J Legal is a brand in itself and leads the industry in developing legal technology powered by machine learning. The company aims to help tax practitioners gain unparalleled visibility into challenging areas of law. According to Deloitte, about 100,000 legal sector jobs are likely to be automated in the next twenty years. Deloitte claims 39% of legal jobs can be automated; McKinsey Global Institute estimates that 23% of a lawyer’s job could be automated. Some estimates suggest that adopting all legal technology (including AI) already available now would reduce lawyers’ hours by 13%. AI will impact the availability of legal sector jobs, the business models of many law firms, and how in-house counsel leverage technology.
It can also help lawyers make more informed decisions by providing them with vital insights and predictions based on data. Ultimately, AI can save legal professionals time and resources and enhance their work efficiency. Keeping up with ever-evolving regulations is a daunting task for legal professionals. AI can help monitor changes in legislation and regulations, helping legal practices stay compliant. Alerts and notifications can be set up to notify lawyers of any relevant legal updates or changes. This saves time and reduces effort but also minimizes the risk of non-compliance, which can lead to costly legal consequences.
Because of this, the red flags that the software has made for possible adjustments still need to be evaluated by a reviewer. Judicata, on the other hand, only serves California state law as of this writing. Its software, Clerk, is said to be capable of reading and analyzing legal briefs.
From agriculture to software development—and nearly every industry in between—AI is taking on menial tasks, sorting data, and finding areas for improvement. “The emergence of these smaller firms will shock the larger legal players, who will scramble to keep their prices and services competitive – much in the same way that stodgy paper-based newspapers had to adjust to digital publishing. Emerj CEO Daniel Faggella believes that broad adoption of AI in law may begin with an ecosystem of small, nimble legal firms will emerge – a group of firms focused from day one on maximal automation and efficiency. The company claims that its average client reduces administrative costs related to payment management by 8 to 12 percent by using the platform’s assisted review feature. The company lists telecom giant Telstra and ride-hailing company Uber among its current marquee clients. Firms in the healthcare space are also utilizing AI for medical billing; this concept is further explained in our article Artificial Intelligence for Medical Billing and Coding.
More recently, AI has begun to be used to help draft contracts, predict legal outcomes, and even recommend judicial decisions about sentencing or bail. Harvey uses a combination of data analytics, machine learning and natural language processing to automate various aspects of practicing law, including contract analysis, regulatory compliance, due diligence and litigation. The platform is built on top of GPT-4, OpenAI’s large language model, which was then enhanced for legal work. In fact, OpenAI’s Startup Fund was among several big name investors to back Harvey with a $21 million Series A round in April 2023. In the context of the legal industry, examples of AI applications inlcude automation in case flow management, contract review, and legal research. This chapter reviews three stages of technological appplication in the legal profession.
- AI remains largely unregulated at the current time, but it is likely that more regulations will be adopted going forward.
- But more importantly, the idea of allowing algorithms to make liberty-depriving decisions may simply be unconscionable.
- Law firms that fail to capitalize on the power of AI will be unable to remain cost-competitive, losing clients and undermining their ability to attract and retain talent.
- The chatbots typically engage with prospective customers in the early phases of the customer journey, helping them to determine what products or services can help to meet their needs.
Facial recognition technology used in law enforcement has faced criticism for potential biases and privacy violations. Striking the right balance between AI’s benefits and ethical considerations is a priority. While AI excels at processing data, it may struggle to fully grasp complex legal concepts, context, and nuances. This limitation could potentially result in inaccuracies or misinterpretations of legal information.
Counsel will want to verify, to the greatest extent possible, that any AI-generated results are accurate before relying on AI with respect to any work product or legal determinations. As AI’s use in the legal profession is still, relatively speaking, in its initial stages, issues will likely arise as the technology progresses and usage is expanded over time. Regarding deep learning AI in the legal industry, it has already been found to have credible applications in contract analysis, legal research, and e-discovery, among other things.
AI technology can empower lawyers by providing them with intelligent tools that streamline and enhance their work. By automating repetitive tasks such as document review and analysis, legal professionals can focus their time and expertise on more strategic and high-value activities. During the due diligence process, lawyers must review vast amounts of contracts, which takes a lot of time and is of the main challenges of law firms.
Improve Your Internal Processes
The legal industry must look toward how lawyers can manage AI and reframe AI technologies as tools that emphasize the value of the human legal decision maker. AI aims to create intelligent machines that can mimic human intelligence or even surpass it in specific tasks. By leveraging AI technologies, industries can automate processes, enhance efficiency, optimize operations, and gain valuable insights from vast datasets. AI has applications in numerous industries, including healthcare, finance, retail, manufacturing, transportation, and, of course, the legal industry. Despite advancements in natural language processing, AI chatbots used in legal services may occasionally provide generic responses or fail to understand specific legal scenarios, requiring human intervention for complex legal advice. Casetext, an AI-based legal research platform, offers advanced algorithms that scour legal databases to provide lawyers with comprehensive research results.
To ensure accuracy, “human-in-the-loop” workflows are crucial to approve AI-generated translations. According to Gartner, solutions that combine staffing and software will account for 30% of all new offerings through 2025. The legal industry is already complex, but when you add international clients and colleagues to the mix, things can get even more complicated.
It can help lawyers conduct legal research more quickly and efficiently, allowing them to find relevant information in minutes instead of hours. Jasper.ai can also help law firms save money by reducing the need for expensive legal research databases and improving the accuracy of legal research. Artificial Intelligence (AI) holds immense potential to improve the internal processes of law firms, leading to increased efficiency and productivity. AI-powered technologies, such as natural language processing and machine learning, can automate time-consuming administrative tasks like document management, scheduling, and data entry. Google Bard is an AI-powered language model that can help lawyers draft legal documents more efficiently. It uses natural language processing (NLP) to suggest legal clauses based on the context of the document and the user’s preferences.
Contact us today to speak with one of our experts and learn more about how we can help you grow your firm. The term “artificial intelligence” was coined in 1956 by John McCarthy, a computer scientist at Dartmouth College. McCarthy, along with other pioneers in computer science, believed that AI would eventually be able to solve problems that were beyond the capabilities of human beings. This could, in turn, increase customer satisfaction and provide a more efficient client onboarding process.
Read more about How AI Is Improving the Legal Profession here.