The legal landscape is on the verge of tremendous change with the rise of artificial intelligence (AI). Even now, it helps optimize work by handling routine tasks and processing large volumes of documents. AI increases the efficiency of law firms, reduces operational costs, and minimizes the risk of various errors.
Table of Contents For Law Firms Using AI
By offloading the day-to-day workload, AI enables lawyers to concentrate on more complex legal cases that demand in-depth analysis. The American Bar Association (ABA) reports that 30% of law firms have adopted AI, while Clio indicates that nearly 80% of lawyers are leveraging AI in their legal practice.
Though AI is positively reshaping the legal field, law firms aren’t immune to its associated complications. This article covers the top 7 emerging challenges for law firms using AI, from data security to integration with existing tools.
Data Privacy and Security
Data privacy and security are of paramount importance as lawyers and law firms deal with clients at all levels. Attorneys possess a wide variety of highly confidential information about clients, such as personally identifiable information (PII), case files, litigation particulars, financial data, etc. All this should be well-protected due to the attorney-client privilege, the violation of which could entail various moral and legal implications.
The usage of artificial intelligence (AI) tools in the legal sphere shouldn’t compromise security and should comply with data protection protocols to prevent data loss. It’s virtually impossible to refuse the use of generative AI in the era of technology, since artificial intelligence boosts efficiency and enables optimization of various legal processes.
Explore the options for ensuring data integrity and confidentiality of legal clients when deploying AI tools from our law firm, Benton Accident & Injury Lawyers:
- Train employees on cybersecurity fundamentals
- Always check an AI vendor and their conditions regarding the processing of the information you enter
- Make sure AI software and tools use reliable encryption mechanisms such as the Advanced Encryption Standard (AES)
- Update the security protocols.
- Customize content and comply with regulations using in-depth IP address data with IPWhois.io;
- Perform an information security audit: penetration testing (pentest), configuration check, and security event log analysis
Resistance to Adopting AI Technology
Whereas a lot of industries have shifted direction to the implementation of AI practically in all workflows, the legal landscape takes its time and continues resisting the adoption of AI. That’s because legal cultures are conservative and try to minimize potential losses. Moreover, lawyers are afraid of putting clients’ trust at risk and face barriers to innovation.
Attorney Brian White noted that modern problems require modern solutions, and law firms cannot afford to remain passive. To implement artificial intelligence into the work of law firms in an eco-friendly way, demonstrate its advantages, and explain how it can reshape the future of legal practice. Offer employees basic training or courses where they can personally see the feasibility of AI.
Ethical and Bias Concerns
AI delivers results based on its training data. So, the output will be as objective as the input data.
AI systems can introduce algorithmic bias and a lack of transparency, which makes it difficult to understand their reasoning process.
There is also the risk of incorrect or even completely fabricated results. This can lead to significant reputational damage and other negative consequences. Nevertheless, AI brings benefits to the legal landscape when properly managed and monitored.
Cost Considerations
The legal AI market is vast and still keeps growing. While AI facilitates work with document review and case analysis, law firms have to consider their monthly expenses. It’s not worth giving preference to overblown and expensive software and tools, hoping they will meet the requirements.
You may find that it can take a significant amount of time to fully integrate it into daily use. Consider using more user-friendly and cost-effective solutions.
An important aspect of considering the cost of AI tools for law firms is focusing on the company’s goals and requirements. To accurately calculate ROI, firms must assess initial expenditure, monthly fees, and anticipated training costs against the projected benefits.
Threat of AI Replacing Human Work
The threat of AI replacing human work is widely publicized. Legal professionals may feel distrustful when using AI tools. Using AI in the legal field is a supplement to human work that can improve accuracy, productivity, and insights. Besides, automating repetitive tasks reduces labor intensity and execution time.
It’s challenging to claim that GenAI can entirely replace lawyers, as it doesn’t possess interpersonal skills, attention to detail, professional ethics, empathy, or emotional intelligence. These indispensable skills are crucial for successful interaction with clients, witnesses, judges, and opposing parties.
Lack of Expertise and Training
It is entirely expected that legal professionals and law staff currently lack proficiency in utilizing artificial intelligence. The absence of hands-on expertise is the first barrier companies encounter.
Keep in mind that AI is a supportive instrument- a reliable assistant, not a complete solution to a problem. Therefore, selecting more streamlined and accessible automation tools tailored to your firm’s operations is essential. Choose a solution with a clean, intuitive interface so the team can get started quickly without hassle.
Don’t overlook using demo versions and free trials offered by AI developers for legal professionals, but also train employees on cybersecurity protection. They can help you make a well-informed decision.
Integration with Existing Tools
Which is better: to work with a new tool or to integrate an already familiar system with a new one? The answer is obvious.
Many law firms that have been using their corporate software for years tend to be skeptical about adopting AI technologies. Nonetheless, to stay afloat in this legal landscape, it’s pivotal to explore alternative solutions. Consider integrating artificial intelligence into your current system rather than entirely replacing the existing software.
Switching to an entirely new platform may not be the best move due to time loss, risk of data loss, incompatibility, and high cost. AI can be integrated via APIs, ready-made plugins and extensions (Kira Systems, Lawgeex), cloud-based systems (Harvey AI, Evisort), and partial automation (auto-drafting NDAs or contracts).
The Future of AI in Law Firms
The future of AI in law firms is revolutionary, as it takes the legal practice as well as the legal field to the next level. AI will assume responsibility for contracts and document review, legal research, and risk assessment.
Predictive analytics in litigation based on AI will also carry weight, as it can predict potential case outcomes with high accuracy. It concerns the analysis of historical case data such as case history, judge behavior, jurisdiction, and previous jury answers. This will equip attorneys with the essential information required to make a critical decision- whether to settle the case or continue with court proceedings.
The next changes for law firm operations are shifts in value propositions and evolving business models. Companies will be forced to tackle more serious legal issues, reconsider their pricing, and service models. Hourly billing may no longer be economically feasible.
Conclusion
AI in law firms is a leap into a new reality. It is rapidly transforming the legal industry, from analyzing massive case databases, highlighting potential pitfalls in legal documents, to reducing the cost of legal research.
The use of artificial intelligence is not just about automating monotonous tasks- it’s more about delivering a new level of legal services to clients. Keep in mind, technology serves as a complement to the expertise of legal professionals, not a replacement.
AI needs human oversight in legal practice. Humans need to check client data protection protocols and verify information to avoid reputational damage caused by algorithmic bias.
