Artificial Intelligence (AI) can initially sound like an unknown and scary proposition.  It garners images of robots taking over the world or even a post-apocalyptic dystopia, like the movie the Matrix. However, the truth is that AI is becoming a transformative force across numerous industries, and the legal field is no exception. As technology advances, AI’s integration into legal practices is revolutionizing how lawyers, judges and the legal profession as a whole, operates. Additionally, it has the potential to revolutionize how legal services are delivered, and how justice is administered. Today, we are exploring the development, applications, benefits, challenges, and future prospects of AI in the legal domain.

Development of Artificial Intelligence

There are many moral, legal and philosophical questions that arise when discussing the development of AI. Specifically, what are the guidelines and laws that should be enacted for those companies and individuals who work on the development and use of AI? Some people advocate for strong regulation of these technologies and others are more supportive of a “free market” that would self-regulate. Either way, there is a lot of discussion around the use of AI today, and the legal field is no exception. And, lawyers are still under obligations to follow the rules set forth by the state that issues their license to practice law. This includes any rules on the use of AI. The American Bar Association and state bar associations are beginning to issue opinions, rules and recommendations on using AI. 

Development and Evolution of AI in Law

One of the primary objectives of using AI in the law is to leverage tools and immense computing power to improve legal processes. Some of the early uses of AI in the law  focused on document management and research, but recent advances have changed and focused on more complex functionalities such as predictive analytics, natural language processing (NLP), and machine learning algorithms. These innovations now allow AI systems to understand, analyze, and generate legal information with increasing accuracy and efficiency.

Benefit–Legal Research

AI tools can go through vast amounts of information much faster than human beings. For example, AI can go through legal databases, reviewing case law, statutes, regulations, and other legal precedents much faster and possibly with greater accuracy than a human. Additionally, AI – using ChatGPT or something similar – could be used to do a first draft of a complex legal document. Then, an attorney or a member of their staff could review what was AI-generated and “clean up” the document before submission to the court or other legal entity. Using AI to initially generate a draft can save substantial time and cost for an attorney, who could then pass those time savings along to their client. 

Benefit–Document Review

AI tools can also assist in reviewing documents during litigation, discovery, or even due diligence processes. The tools can be used to identify pertinent clauses, phrases–and similar to legal research can be more cost effective and accurate than a human’s review. This could also be possible for us in analyzing contracts, flagging potential risks and even suggesting amendments. 

Benefit—Predictive Analytics

AI tools and models can analyze historical case data to predict litigation outcomes. This could help lawyers come up with strategies on how to present their client’s case or even advise a client on the likelihood of success, versus accepting a settlement. This predictive capacity also extends to settlement negotiations and risk assessment.

Benefit–Legal Assistance and Inquiries:

AI-powered chatbots could provide initial legal advice, answer common legal questions, and guide people through the legal process. These tools could provide greater access to information on the justice system.

Benefit–E-Discovery:

During litigation, AI facilitates electronic discovery by automating the identification, collection, and review of relevant electronic documents, enabling faster case preparation and better compliance.

Challenge–Confidentiality and Data Privacy. One of the pillars of practicing law as an attorney is maintaining client confidentiality. Using AI could potentially compromise this, if for example an open-source technology is used. Even if the attorney doesn’t use the client’s name or is using an open-source technology for assistance, the facts and circumstances could potentially identify the client. If that happens, the attorney may be breaking the rule of confidentiality, therefore compromising their client’s case or even the attorney’s law license. This could also raise data privacy concerns for the client and attorney.

Challenge—Displacement of Legal Jobs

As with other professions where automatic or AI may be used, there is always a concern of AI displacing jobs. This could include paralegals, legal assistants, law clerks and court clerks. 

In 2024, the American Bar Association (ABA) Standing Committee on Ethics and Professional Responsibility released its first formal opinion covering the growing use of generative artificial intelligence (GAI) in the practice of law, pointing out that model rules related to competency, informed consent, confidentiality and fees principally apply. The Opinion states that to ensure clients are protected, lawyers and law firms using GAI must “fully consider their applicable ethical obligations,” which includes duties to provide competent legal representation, to protect client information, to communicate with clients and to charge reasonable fees consistent with time spent using GAI. Additionally, the opinion “identifies some ethical issues involving the use of GAI tools and offers general guidance for lawyers attempting to navigate this emerging landscape.” It added that the ABA committee and state and local bar association ethics committees will likely continue to “offer updated guidance on professional conduct issues relevant to specific GAI tools as they develop.”

If you or your business is considering using AI or GAI in the legal profession, the most important thing to do is to consult the jurisdiction where your business is located and determine the governing rules for its use. While AI and GAI can initially seem like an unknown and futuristic tool, the truth is that it is becoming a transformative tool that will continue to shape the modern world. Additionally, its benefits, if considered and weighted against risks and drawbacks, could significantly improve the justice system and the way that humans receive legal services.