Legal professionals are increasingly leveraging generative AI, with 76% of lawyers reporting weekly use. A survey by Wolters Kluwer reveals that while many firms plan to invest more in AI, issues like integration challenges, data security risks, and the technology’s reliability remain concerns. AI’s efficiency threatens traditional billing models and the roles of junior lawyers, prompting debates on ethical use and necessary training for successful implementation. Overall, AI is reshaping the legal landscape significantly.
In a world inundated with documents, legal professionals are increasingly focused on the advantages that generative AI can offer. Large language models (LLMs) have the potential to significantly reduce the time spent on various tasks such as drafting legal documents, generating confidentiality agreements, pinpointing specific case law, and keeping up with regulatory changes.
A recent study from Wolters Kluwer, surveying 700 legal experts across the USA and Europe, reveals a strong optimism within the industry regarding the adoption of new technologies.
Widespread Adoption of Generative AI Among Lawyers
According to the survey, 76% of lawyers and 68% of attorneys reported using generative AI at least once a week, while 35% of legal departments and 33% of law firms utilize it daily. The primary applications of this technology focus on alleviating manual tasks and managing large data sets efficiently.
Additionally, over half of the law firms (58%) and a notable 73% of legal departments intend to boost their investments in AI over the coming three years. Despite this, 37% of law firms and 42% of legal departments face challenges in embedding generative AI into their established legal frameworks.
Concerns Surrounding Data Integrity and Ethical Use
Integrating generative AI comes with its own set of responsibilities, including the ethical deployment of the technology. Effective implementation may require a structured change management approach, yet 30% of law firms and legal departments reported not providing any training for its application.
Quality control is also a concern, as 41% of lawyers expressed apprehensions about the reliability of generative AI outputs, similarly reflected by 37% of legal departments. Instances of erroneous information, sometimes referred to as hallucinations, can mislead legal professionals. For instance, a New York firm encountered a situation where ChatGPT referenced non-existent case law.
The extensive usage of LLMs heightens the risks related to data confidentiality and security. Given that law firms often handle sensitive information, they are prime targets for cybercriminals, as highlighted in a June 2023 report by Anssi. Cyber threats may include extortion attempts or the unauthorized disclosure of confidential data, placing both clients and legal practices at risk.
Reevaluating the Billing Structure
Moreover, generative AI challenges the traditional billing practices based on time. If an AI can complete tasks in minutes that once took hours, the viability of hourly billing comes into question. More than half of the surveyed legal professionals (56%) feel prepared to evolve their pricing structures in light of these advancements.
The introduction of AI also prompts the need to contemplate employment dynamics within the legal sector. As AI continues to automate routine tasks typically assigned to junior lawyers, their future roles become uncertain. A 2023 report by Goldman Sachs suggests that nearly 44% of tasks handled by legal professionals could be overtaken by generative AI.