The use of artificial intelligence in the legal industry
The use of Artificial Intelligence (AI) is revolutionising several sectors, and the legal industry is certainly no exception. AI is changing how legal professionals interact with clients, conduct research and manage cases, amongst others. This article considers the applications, benefits and challenges of AI within the legal sector, with a focus on its impact in Victoria, Australia.
The use of AI in the legal industry
There are various ways in which law firms are using AI as their new virtual assistant, including, amongst others:
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Contract review
Instead of manually sifting through hundreds of pages of legal jargon, AI systems can very quickly review and analyse contracts whilst removing the element of human error from the equation. Whilst analysing contracts, AI can ensure compliance with relevant laws and identify potential risks.
- Virtual legal assistants
AI can handle those time-consuming administrative tasks such as client communication, scheduling and document management, which allows the legal professionals to focus on the strategic side of their role.
- Document review and legal research
AI has the ability to review a multitude of legal documents, including legislation and case law, all while deciphering legal jargon. This enables lawyers to concentrate on the complex and strategic aspects of their work.
- E-discovery
AI can automate the discovery process by identifying relevant, discoverable documents and information more accurately and quickly than conventional systems. AI e-discovery is specifically useful in litigation, where large amounts of documents need to be reviewed.
Benefits of AI in the legal industry
AI continues to enhance the legal industry in numerous ways, enhancing efficiency, accuracy and accessibility. The below lists some key benefits.
- Improved accuracy
Not only can AI analyse large volumes of data a lot quicker than humans can, AI does it with a high degree of accuracy, thus reducing the risk of human error in document review and legal research.
- Increased efficiency
AI can complete time-consuming repetitive tasks more efficiently and accurately than humans resulting in increased efficiency and productivity in legal practices.
- Enhanced client services
A common complaint made about lawyers is their delayed response times. AI can provide clients with not only quicker, but more accurate replies to their questions, which results in improved client satisfaction.
- Cost reduction
By automating the routine tasks usually completed by humans, it reduces the costs associated with the legal services, which if passed on to the client, makes them more accessible to a larger range of clients.
Challenges and ethical considerations of AI in the legal industry
Whilst AI in the legal industry does come with great benefits, it also comes with challenges and ethical considerations which need to be considered whenever opting to use AI, including:
- Data privacy and security
When using AI within the legal industry, there are concerns regarding data privacy and security. Accordingly, it is imperative that legal professionals ensure that the AI systems they purport to use comply with the relevant data protection laws and regulations.
- Regulatory compliance
Much like data privacy and security, the legal industry is regulated heavily, and as such, the use of AI must adhere to the existing laws and regulations. It is important that legal professionals remain informed and up to date with the regulatory landscape and ensure that AI systems are used responsibly.
- Bias and fairness
AI systems are known to perpetuate existing biases in legal data, which has the potential to lead to unfair outcomes. Therefore, when developing and implementing AI systems, it is crucial that you develop systems which are transparent and unbiased.
- Job displacement
Unfortunately, the automation of routine tasks by AI may result in job displacement for some legal professionals, namely the support staff. Before implementing AI systems, it is important to consider the impact that AI may have on the workforce and develop ways to mitigate the potential negative effects.
Misuse of AI in legal practice
New York law firm misuses Chat GPT
A New York lawyer, Steven A. Schwartz, his colleague Peter LoDuca and their law firm Levidow & Oberman relied upon research for a personal injury case produced from ChatGPT which unfortunately contained fake citations. The Judge determined that the lawyer’s actions were in bad faith. Levidow & Oberman received a US$5,000 fine for filing the fake citations.
The Supreme Court of Victoria guidelines for the responsible use of Artificial Intelligence in litigation
The Supreme Court of Victoria has provided guidelines for the used of AI in litigation which are designed to assist legal practitioners and self-represented litigants.
The principles for the use of AI by litigation include:
- Parties using AI must ensure they understand how AI works and the limitations.
- Parties are required to be aware of the privacy and confidentiality of information and data provided to an external program. The information may not be secure.
- The use of AI programs must not indirectly mislead another party as to the nature of the work undertaken. In some circumstances, the use of AI is required to be disclosed to the other parties and the court.
- When using AI to assist with tasks, it must be done subject to the legal practitioner’s obligations which includes the obligation of candour and the obligations imposed by the Civil Procedure Act 2010 whereby legal practitioners represent that documents prepared and submissions made have a proper basis.
- Self-represented litigants who use AI to assist with the preparation of documents are encouraged to notify the other parties by including a statement which advises which AI tool was used
Conclusion
Whilst the integration of AI in the legal industry has benefits of increased efficiency, improved accuracy and cost reduction, it presents challenges regarding data privacy, biases, job displacement and compliance. Users ought to remain informed about its implications and be sure to check that the work completed by AI is accurate.
