Although Artificial Intelligence (AI) and the Law have intersected for over three decades, recent advancements in AI and Machine Learning (ML) including the emergence of AI Legal Chatbots (from 2016) and the launch of novel Generative AI models like ChatGPT (from late 2022) have significantly transformed the scope and scale of AI Adoption in legal practice.
Examples of AI Usage:
Preliminarily, we must note that AI’s primary purpose is to augment, rather than fully automate tasks. Thus, AI is designed to assist, not replace, legal professionals, enabling them to perform specific tasks more efficiently and accurately.
For instance, AI tools can automate simple routine tasks including timekeeping and billing, whilst supporting critical research tasks, by providing lawyers with important information and insights to effectively draft essential documents and prepare for litigation.
Some tools offered by ‘search providers’ include ‘semantic search’ (to locate pertinent documents) and ‘passage level retrieval’ (to pinpoint and extract portions of documents).
Similarly, ‘e-discovery’ processes have used ‘classification’ (an ML practice) over the past two decades to effectively automate document review.
Contemporarily, AI Chatbots are useful for lead generation, efficiently collecting key information from clients about their legal disputes, thus enabling lawyers to analyse their circumstances and take prompt action (upon acquiring proper instructions).
Generative AI, like ChatGPT may be utilised as an invaluable research tool, drastically simplifying the process of legal research and citation.
The Benefits of Using AI:
- Enhanced Efficiency
AI tools streamline legal research and enable rapid draft (e.g. contracts and agreements) generation, with clear, concise language. Subsequently, they can enable significant time savings for lawyers, whilst reducing the risk of human error when used appropriately.
This, in turn, allows law firms to deliver quicker, more accurate responses to client needs.
- Greater Cost Reductions
Through this substantial time save, client costs may also be significantly reduced (lower billable hours). Clients thus receive greater value in proportion to their spending.
However, legal departments have also witnessed cost savings, as demonstrated by the Association of Corporate Counsel (ACC) and Everlaw report titled: Gen AI and Future Corporate Legal Work: How Ready Are-In House Teams?
The report outlines that ‘through using GenAI… 25 percent… of law departments… experienc[ed] cost savings on operational expenditures’ while ‘58 percent… expect[ed] a reduced relance on outside legal service providers.’
This effectively demonstrates how AI assistance has not only bolstered the internal operational efficiency of law firms but also reduced the need for external legal assistance, thus catalysing greater cost-effectiveness.
- Enhanced Access to Justice
Where properly regulated, AI can grant individuals who can’t afford legal representation, an opportunity to access justice. It also enables them to logically structure their arguments in a concise fashion for appropriate court presentation.
Notably, a plaintiff awarded more than $85,000 in damages following a motorbike crash, utilised ChatGPT to bolster the organisational structure, accuracy and language of their legal submissions.
The Risks of AI:
- Learning and Focus Risk
‘Learning risk’ may be encountered where the legal profession is unable to adequately integrate AI within its operations, thus falling behind emerging technologies that are widely publicly accessible.
Conversely, ‘focus risk’ may transpire where firms become overly reliant on AI, causing a decline in the quality of traditional legal service provision which requires lawyers’ professional experience (i.e. their ability to tailor innovative and versatile legal solutions).
- Data Inaccuracy
Generative AI such as ChatGPT rely on data inputs that power their training and learning processes. Subsequently, contemporarily available Generative AI chatbots have been evidenced to provide inaccurate legal information and should be verified by qualified legal professionals prior to being utilised in legal proceedings.
Notably, a Melbourne Lawyer was recently referred to the Victorian legal complaints body (Victorian Legal Services Board and Commissioner) for inappropriately relying on an AI-generated (via Leap’s software) case citation list. This catalysed the adjournment of a hearing, particularly as the information’s accuracy had not been verified.
Irrespective of the benefits of AI, legal professionals have an ethical obligation to verify the integrity of this AI-generated data and should be consulted where individuals doubt its accuracy.
- Data Privacy Concerns
ChatGPT retains unresolved data privacy concerns, as any client data entered may be subject to unauthorised access via data breach or cyber-attacks.
OpenAI (the company behind ChatGPT) has entered over 300 billion words from various online sources to train the system, some of which include personal information acquired without consent.
Thus, where engaged it is imperative for law firms to be especially cautious of its privacy implications and implement the appropriate safeguards to protect client data.
If you or someone you know has experienced any legal issues over AI-related matters or have had your data tampered with, then please do not hesitate to contact us on 02 8999 9809.