In January, The American Lawyer analyzed 41 of the United States’ highest-grossing firms (AM Law 100) to evaluate how these businesses use generative artificial intelligence (GAI) to expedite their legal work and promote business operations. Many of the country’s top firms agree that GAI will make legal practice more efficient while maintaining that there are potential risks involving the use of confidential, client-specific information. Let’s get into the details.
Background
The American Lawyer is doing a series examining how top law firms use GAI based on reporting and feedback from legal industry leaders. The reporting is based on 41 AM Law 100 firms interviewed about using GAI, working with tools built by third-party vendors, and “supplementing these services with their software development efforts.” According to the report, the consensus surrounding GAI is an “attitude of cautious innovation,” complicated by the “evolving relationship the world’s top law firms have with generative AI.”
The legal industry has always been slow to technological change as practitioners often hesitate to use new tools that could jeopardize client confidentiality and pose privacy risks. However, the reporting indicates that many of the nation’s top firms have begun employing GAI tools in their legal practice, and the early results suggest that GAI makes the practice of law more efficient –albeit the drawbacks concerning “hallucinations” and data reliability. Overall, incorporating GAI into firm practice seems to signify an upturn in efficiency for both the legal and business side of operations.
Readily Applicable Uses of Gen AI in Law Firms
Many of the firms interviewed by The American Lawyer indicated several early use cases for GAI showcasing the technology’s benefits. For example, “lawyers are employing gen AI to research matters, draft documents and generate transcripts, while on the business side, professionals are saving hours upon hours by using it to create marketing materials and other content.”
According to the report, the most cited opportunities and impacts on top law firms involve cutting down on attorney time spent on non-billable tasks, drafting and summarizing legal material, legal research and querying documents for information extraction, E-discovery for document production for litigation, and researching a client’s industry.
Firm leaders tend to agree on the benefits of GAI and restrict its use “to functions that don’t require the input of client-specific information and instead rely on public data. In the last year, large firms have deployed generative AI to create client alerts about regulatory and statutory updates, research laws relevant to a client’s case, and generate first drafts of marketing and legal materials.”
Potential Risks and Drawbacks of Gen AI in Law Firms
Though members from top law firms indicated that they are optimistic about GAI, some are still weary over its potential risks. Though GAI makes completing tasks more efficient, it is also susceptible to security risks and data breaches –potentially putting confidential client information at risk. Another complication is that sometimes GAI “hallucinates” and outputs false or misleading information. This is why experts emphasize that a human should always double-check and confirm any GAI-generated work product to ensure accuracy.
Furthermore, some firms indicated another drawback to GAI is the “extent to which it will displace the work of legal professionals” and “firm leaders say it could undermine the traditional business model of large law firms.” Some raise concerns about the training of junior associates and the disruption of young lawyers’ professional development if GAI can perform those tasks typically delegated to new associates at the firm.
Most top firms are cautiously optimistic about GAI and its vast potential to make law practice more efficient. Though GAI poses some risk to the foundational business structure firms are built upon (such as billable hours), the technology –when used effectively –improves workflow, allowing legal professionals to dedicate their time to higher-level client-centered work.
Universal Agreement Over Gen AI Benefits
The report indicates that most “firm leaders universally agree generative AI will make legal operations more efficient, reducing the time lawyers spend on non-billable tasks and low-value commoditized legal work.” However, it also indicates that AI development is still in its infancy and has potential risks.
Technology is only as good as the data that creates it and the human that utilizes it. Lorie Almon, Seyfarth Shaw chair and managing partner, stated in the report that “right now, generative AI isn’t as good about facts as it is about creating content and drafting,” emphasizing that there needs to be a crucial balance between human intelligence and machine learning –and understanding its limits.
Top law firms tend to agree that GAI will revolutionize the legal industry, and this type of rapid technological advancement has not been seen since the dawn of the internet. The integration of legal tech into law firms has permanently changed how business is practiced, and it’ll be interesting to see how GAI developments foster a new era of legal practice.
Ready for Gen AI to Streamline Your Workflow?
Navigating AI technology is critical as there are many platforms to choose from. AI software is only as good as its data. The legal industry –from the courts to the clients depends on factually and legally accurate data –as reliable information is the bedrock of legal practice. If you are a legal professional considering incorporating AI into your workflow but are weary of AI-generated content –check out Trellis!
Trellis is an AI-driven, state trial court research and analytics platform. We make the fragmented US state trial court system searchable through a single interface, and we provide practitioners with analytical insights on judges, cases, and opposing counsel so that they can make actionable decisions in Court. Save time on legal research and writing by tracking lawsuits throughout various states and staying updated with documents from ongoing litigation. Request a demo today and experience the ease of our analytics and API, providing you with the tools needed –backed by data you can trust –to streamline your legal practice.
Sources:
https://www.law.com/americanlawyer/2024/01/31/clients-common-sense-drive-big-law-gen-ai-policies
https://legal.thomsonreuters.com/blog/how-ai-transformed-the-legal-profession-in-2023
Music: Disruptor’s Dance by Anka Mason
Blog Narration: Anka Mason