Daniel Farrar is the CEO of Assembly Software.
To say that the evolution of case management and legal technology has revolutionized how law firms work is an understatement—and now, artificial intelligence is driving the next wave of transformation.
To future-proof their firms, attorneys must embrace generative AI legal tech and not shy away from it.
AI Is Here To Stay In The Legal Field
The writing on the wall is clear: AI is here to stay in the legal profession. Modern firms are rapidly weaving AI into their workflows.
According to the results of a survey Thomson Reuters conducted in 2019, 64% of law firms that indicated they were using “AI-enhanced technologies” were doing so for legal research, and 77% of those firms deemed “‘increasing efficiency’ and ‘saving time’ as top benefits.” As for generative AI, in a report published by Thomson Reuters in April 2023, 82% of lawyers working at law firms said that ChatGPT/generative AI can “be applied to legal work,” and 51% said it should be “applied to legal work.” The report also found that 3% of respondents said they “were actually using generative AI,” and 34% said their firms were “still considering whether or not to use generative AI for legal operations.”
But scan the headlines, and it’s evident that the use of generative AI will soon become commonplace in the industry. In February 2023, news broke that international law firm Allen & Overy would be partnering with Harvey AI “to automate some legal document drafting and research” and that, at the time, over 3,500 of the firm’s lawyers had “already tested” the tool. A month later, PricewaterhouseCoopers announced that it too had joined forces with the startup, giving roughly 4,000 of its lawyers “access to the technology.”
What’s more, a few pivotal events happened in June 2023. Thomson Reuters acquired legal tech startup Casetext for $650 million, and LexisNexis released a tool (its latest one backed by AI) that helps transactional attorneys “research, negotiate and close transactional agreements.” June also saw AI legal tech startup DraftWise raise $5 million. A key strategic investor? Legal giant Orrick Herrington & Sutcliffe, further showing that major industry players recognize that AI marks the next stage of innovation in the field.
The Benefits Of AI Legal Tech, And The Risks Of Not Embracing It
Law firms that embrace generative AI legal tech can streamline their processes, removing and reducing routine tasks, so their attorneys can spend more time on strategic work that will help them secure the best outcomes possible for their clients. In turn, attorneys will feel more engaged and productive at work. Specifically, legal tech solutions that are driven by generative AI:
• Free up lawyers to focus on more strategic tasks by automating the creation of legal documents.
• Lower the risk of human error through automated data extraction.
• Help lawyers meet important deadlines by proactively monitoring case-related events for important dates.
• Improve the speed and accuracy of review processes through document analysis.
Despite these benefits, law firms might be reluctant to use the AI-driven legal tech of today. But legal teams have been transforming their processes and expanding their skill sets for as long as legal tech has been evolving. Key milestones in that evolution include the dictation machines in the 1950s, electronic calculators in the 1970s, email and internet in the 1990s and early versions of case management software in the early 2000s.
Along the way, the firms that came out on top were the ones who swiftly and strategically embraced that new technology. Law firms that didn’t adapt their way of working in response to these advancements fell behind their peers. With this latest wave of innovation (AI), the stakes of not adapting are arguably higher than ever. As John Villasenor, a nonresident senior fellow in Governance Studies and the Center for Technology Innovation at Brookings, put it, law firms that “fail to capitalize on the power of AI will be unable to remain cost-competitive, losing clients and undermining their ability to attract and retain talent.”
How Firms Can Adapt To AI
Some in the legal profession fear how AI will impact their jobs. That fear isn’t unfounded; Goldman Sachs estimated in a 2023 report that 44% of “current work tasks could be automated” in the legal field. But AI cannot replace lawyers’ deep critical thinking and analysis; it can only facilitate those essential skills. Law firms that want to use AI-powered legal tech should first adopt the mindset that AI is there to supplement their attorneys’ roles, not replace those roles. They must come to view AI-driven legal tech as a means to complete their jobs more efficiently and better address their clients’ needs. That change in mindset will enable law firms to be forward-thinking, innovative and adaptable, using AI strategically to their advantage.
With various AI solutions on the market, law firm leaders must be mindful of choosing ones that are right for their teams. Just because a particular solution is popular among competing law firms, for instance, doesn’t mean it’s the optimal fit for every firm. As they begin the search process, law firm leaders should pinpoint the parts of their firm’s workflows that are currently the most constrained by time-consuming, manual processes and seek AI tools that address those pain points.
Law firm leaders should involve their teams in the planning and selection process to find best-fit solutions. Any solution that doesn’t have substantial buy-in from the get-go is unlikely to be fully leveraged by a team after implementation. To the extent possible, leaders must facilitate an open dialogue between their teams and vendors of choice to determine fit.
Once a law firm has implemented an AI solution, its team will need proper post-implementation training. That training, coupled with regular use, will cue leaders in on the adjustments required to get the most return on investment out of their chosen tool. AI-driven legal tech on its own will not revolutionize how firms work. To successfully use AI, legal teams will have to learn new skills and update their processes. For instance, an AI solution that produces wording recommendations for clauses will require attorneys to emphasize editing that type of legal language rather than writing it from scratch.
Leveraging AI legal tech, rather than fearing it, will enable law firms to generate great outcomes for their clients in a more efficient and time-saving manner—ultimately focusing more on the possibilities of the law than the drudgeries.
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