Will AI Transform the Legal Industry?
/
Get ready: The use of artificial intelligence may bring meaningful changes to the way lawyers work
The legal industry is experiencing an innovation boom. What once were considered revolutionary technologies are becoming mainstream, and AI-powered software is leading the charge.
According to Bloomberg Law’s 2020 Legal Technology survey, AI-driven tech is used "heavily" in law firms and in-house legal departments, with legal research, e-discovery, and document review among its most common applications. But when the respondents were asked, "how well do you feel you understand the underlying technology used in your daily workflows,” 39% replied “not very well” or “not well at all.”
Many working in the legal profession lack a clear understanding of the prevalence of AI in their workplace—and remain uncertain about the ethical dilemmas it may pose. Here's an attempt at demystifying AI and some ways lawyers are using it.
AI is all around us
A common way to define AI is as technology that “teaches” a computer to think as humans would, given the same data and instructions. Machine learning, a term used interchangeably with AI, is a component of AI that focuses on the study of algorithms. It enables computers to perform tasks using multiple data points to identify patterns over time, at ever-increasing speeds.
Devices using artificial intelligence are not new and have steadily become a part of most consumers’ daily lives, used in everything from smartphones and smart speakers to navigation systems and appliances.
Still, many people across multiple industries have legitimate concerns about the widespread adoption of AI and machine learning. Some worry that machines will displace human labor, and others debate AI’s ethical implications.
AI adoption throughout the legal industry
While the legal industry had been comparatively slow to adopt AI in its workstreams, there are signs that it is changing. But the path to fully adopting AI-enabled technology is full of obstacles. It requires planning, dedicated resources, and a cultural shift that won’t happen overnight.
The primary benefit of using AI for routine tasks is proven: AI increases efficiency. Time-intensive work such as keyword research, planning, data organization, and file management can be streamlined. The basics of practice management, including time-tracking, billing, and client communications, are more efficient with the application of AI. The cost-effectiveness of innovations in these areas gives law firms that adopt these technologies a competitive edge.
Many firms and legal departments are also using AI-based systems to conduct research and review legal documents. The use of machine learning to handle M&A due diligence and e-discovery, for example, is growing.
AI can analyze bulk sets of documents, including contracts, more quickly and easily than humans can. The AI software can be "trained" to pick up errors and inconsistencies. It is not hard to imagine how that could cut expenses for a law firm or legal department and perhaps even safeguard its reputation for paying attention to detail.
Some legal professionals are even using AI for insight on how to best advise their clients. When given relevant data from similar proceedings, algorithms driven by AI can make predictions about the outcome of a specific case. Lawyers can be armed with information about the probability of success when deciding to take a new case and, once engaged, guidance on how best to proceed.
Drawbacks and concerns related to the use of AI in law
Those objecting to the use of AI within their firm or legal department cite concerns about compromising their clients' privacy or the potential of the technology to minimize billable hours. Some worry about the steep learning curve presented by certain AI-enabled software programs and a loss of productivity because of time dedicated to training staff.
Some also are anxious about their job security if AI is widely used to handle work typically assigned to groups of humans. However, given the nature of law and its reliance on higher-level, creative, nuanced thinking capable only by humans (at least, for now), most legal professionals surveyed welcome the potential efficiencies of AI without the worry of being replaced. The technology is only as good as the humans controlling it.
The ethical and moral implications of using AI in the legal industry are harder to dismiss. Output from non-human technologies is subject to claims of bias and lack of transparency. The use of AI by legal professionals requires strict adherence to established guidelines.
In 2019, the American Bar Association (ABA) developed several resolutions regarding the use (and non-use) of AI by lawyers. States are also in the process of passing or revising regulations on how legal professionals can use AI and other new technologies.
One of the most discussed concerns in the legal profession is the use of these technologies by non-lawyers. The ABA addresses the threat posed “by those outside the profession to provide the same services, with all the combined learning of law libraries, precedent and risk analysis, reliably and instantaneously, but without the training, rigor and regulation of the legal profession.”
To one degree or another, legal professionals face a future shaped by artificial intelligence. Many experts see it as an inevitable component for long-term growth and profitability. Leaders are charged with achieving a sustainable balance of automation and human input. Those who quickly adopt these efficiencies may succeed in meeting their clients' expectations over those more reluctant to innovate.
Carrington Legal Search is celebrating 20 years in business: we were in the trenches with our clients during 9/11 and 2008. We partner with our clients to identify leaders and mission-critical talent to shore up and grow companies even during the most challenging times. We are here for you! To make our nationwide network work for you, get in touch at 512-627-7467 or email carrie@carringtonlegal.com.