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Unleashing the Power of AI in the Legal Profession: A Comprehensive Overview
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Unleashing the Power of AI in the Legal Profession: A Comprehensive Overview

By: Dan Hauck

Dan Hauck is a former practicing lawyer and is passionate about delivering enabling technology to the legal industry. At NetDocuments, he is the Chief Product Officer and responsible for all products and the user experience across the platform. Dan also develops the strategic vision and roadmap for the company. Previously, Dan was the founder and CEO of the ILTA-award-winning company ThreadKM, a knowledge management and messaging platform for professionals. ThreadKM was acquired by NetDocuments in November 2017. Dan has spoken at numerous events about legal technology, including ILTACON, Lawtech, and LexThink.

The legal profession is undergoing a significant transformation, largely driven by the advent of artificial intelligence (AI). As AI technologies continue to evolve, they are fundamentally altering how legal professionals operate, making processes more efficient and outputs more predictable. This overview explores the transformative impact of AI on the legal industry, focusing on large language models and their application in legal tasks.

AI-Powered Automation: A Good Place to Start

To meet heightened productivity demands, legal professionals are turning to next- generation automation technologies. When leveraged strategically, these tools have the potential to optimize workflows, automate repetitive tasks, and enable teams to deliver greater strategic value. In fact, according to a recent survey by PwC, businesses can save between 30%-40% of the hours typically spent manually inputting, mining, and extracting information from documents by elevating automation to the next level with the help of AI. Some teams are seeing as much as a 90% shift in time savings on particular tasks.

Successfully integrating technological capabilities that align with specific needs is crucial for law firms and legal teams. However, determining which technologies will have the most significant impact can be challenging. Simply adopting technology for its own sake may not enhance productivity or client satisfaction. It’s essential to discern where automation can genuinely revolutionize efficiency without sacrificing the human touch.

To fully realize the benefits of new technologies, map out the business processes and identify the workflows you are trying to address so you can select the most suitable technology to meet those needs.

Customizable AI Tools for Legal Workflows

Modern AI tools are not only about automating tasks; they are also about augmenting the capabilities of legal professionals. Customizable AI tools allow legal professionals to create bespoke automations tailored to their workflows. For instance, AI tools can:

  • Extract key data points from documents: AI can automatically extract key data points from documents, such as the parties involved in a contract or the key terms of a lease agreement. 
  • Generate new documents based on prior precedents: AI can use extracted data to generate new documents, such as demand letters, based on prior precedents. This not only speeds up the drafting process but also ensures the generated documents are in line with the firm’s standards.
  • Automate repetitive tasks: AI can automate repetitive tasks, freeing up legal professionals to focus on more complex and strategic work.

And so much more.

Understanding AI and Large Language Models

Powered by large language models (LLMs), generative AI gives people with expertise and knowledge the ability to create, analyze, and innovate with unprecedented speed and accuracy, transforming work and enhancing productivity. This is made possible through a process called vector embedding, which allows the AI to identify and understand the most important words in a sequence of text.

Large language models can:

  • Draft legal documents: AI can generate drafts of legal documents, saving valuable time and reducing the risk of human error.
  • Analyze large volumes of text: AI can quickly and accurately analyze large volumes of legal text, identifying key points and trends.
  • Enhance Client Services: By automating routine communications and providing initial client consultations, LLMs can enhance client service by ensuring quick, consistent, and informative responses to client queries. They can also help in creating personalized updates for clients on the status of their cases, ensuring that lawyers maintain regular and efficient communication.

Kim Konotchick of Microsoft emphasizes the unique opportunities AI presents for the legal industry, stating, “The legal industry has large documents. Very unique and intricate language in those documents, and that’s perfect for today’s large language model and generative AI.”

The Ethical Considerations of AI in the Legal Profession

While the adoption of AI in the legal profession is growing, it’s important to approach it responsibly. Legal professionals need to understand the capabilities and limitations of AI tools and ensure they are used ethically and appropriately. Key considerations include:

  • Transparency: Legal professionals should understand how AI tools work and be transparent with clients about their use.
  • Accuracy: While AI can improve efficiency and reduce errors, it’s not infallible. Legal professionals should always review AI-generated work for accuracy.
  • Confidentiality: AI tools should be used in a way that respects client confidentiality and privacy. Most AI providers will tell you that your client information or intellectual property will not be used to train their model(s), but it is important to ask deeper questions. For how long are the inputs and outputs to those models stored? Are inputs and outputs subject to algorithmic or human oversight in what is commonly known as “abuse monitoring” programs? To preserve confidentiality, seek zero-day retention and exemption to systematic or human oversight.

Why the Cloud Is More Important Than Ever

Organizations have recognized the benefits of the cloud over on-premises systems in terms of cost, agility, resiliency, and capabilities of cloud-first strategies. AI is further encouraging a shift because it relies on the capabilities of the cloud.

An organization’s data, both structured and unstructured, serves as the fuel for powering any generative AI technology used in legal work. The more data you can access as an organization, the better positioned you are for success when introducing AI to legal tech. For this reason, AI workloads demand an infrastructure that can process the appropriate amounts of data at speed. And for legal organizations, all this must be done in a way that is highly secure and maintains appropriate confidentiality, access controls, and ethical walls.

Gaining buy-in from decision makers, carefully evaluating cloud providers, and promoting adoption across the organization are critical steps for a successful transition to a cloud-first strategy. By embracing the cloud and integrating AI technologies, legal professionals can streamline workflows, increase productivity, and deliver greater value to their clients in today’s rapidly evolving legal landscape.

AI’s Living Up to the Hype

The AI revolution in the legal industry is not just hype — it’s a paradigm shift that’s transforming the way legal professionals work. By harnessing the power of AI, legal professionals can improve efficiency, reduce errors, and deliver better results for their clients.

As AI continues to evolve, so too will the opportunities it presents for the legal profession. Embracing AI is not about replacing legal professionals but about equipping them with powerful tools that can enhance their work and deliver superior results.

As we look to the future, it’s clear that AI will continue to play an increasingly important role in the legal profession. By understanding and embracing these technologies, legal professionals can stay ahead of the curve and ensure they are ready for the future of law.

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