October 24, 2024 – The dual nature of AI: excitement and fear
AI is evolving rapidly and is causing both wonder and concern. As it transforms industries and our daily lives, we are caught between the thrill of innovation and the jitters of uncertainty. Will AI elevate the human experience or just leave us in the dust? What impact will this have on our careers, privacy and sense of security?
Just as we have seen with the rise of the internet – and later social media – AI is poised to redefine the way we work and live, bringing with it a mix of optimism and concern. As we grapple with the implications of AI, our customers expect us to take the lead in harnessing it to their benefit.
Phase one: client pressure and the legal sector’s cautious approach
The first wave of change in the legal profession will likely come from clients, especially those who are tech-savvy and business-oriented. They will expect law firms to incorporate AI into their services because of the potential cost and time savings. However, the legal industry has a reputation for being cautious, and for good reason. Lawyers have fiduciary duties, ethical obligations, and regulatory frameworks to navigate.
The reluctance to adopt AI too quickly reflects the need for careful consideration of its risks and benefits. Law firms must balance this pressure from their clients with a commitment to upholding their professional and ethical responsibilities.
Efficiency and billing: the end of hourly rates?
AI’s ability to streamline repetitive tasks such as document review, drafting and legal research means that billing clients by the hour may soon be obsolete. As law firms adopt AI, the traditional billing structure will likely shift to flat fees or performance-based pricing, especially in areas such as mergers and acquisitions.
Platforms like “Relativity” for e-discovery and “Harvey” for contract review already automate these processes and deliver results in a fraction of the time it used to take. These tools are revolutionizing the way law firms approach their services, forcing them to rethink how they bill for their time and expertise.
AI as the new junior employee: competition for less human positions
One of the direct consequences of AI integration will be a reduced need for support staff and junior employees. Historically, these roles have handled administrative, repetitive tasks that AI can now perform with greater efficiency.
Tools like “ChatGPT” can assist with research, drafting, and other tasks with some guidance and multiple rounds of editing, just as a fast-learning junior employee might do. The good news is that junior employees can now focus on higher-level tasks, positioning them for faster career growth.
However, this shift also means more competition for fewer entry-level jobs. Law schools will play a key role in helping students become more marketable by offering courses on AI tools and technology. Graduates with AI knowledge will have an advantage over their peers, as companies increasingly value employees who can collaborate effectively with AI tools.
Law schools like Stanford and Duke have already introduced legal technology courses, preparing the next generation of lawyers for an AI-driven profession.
Smaller law firms: a level playing field?
AI offers smaller law firms the opportunity to compete with larger firms, at least for more general tasks. By becoming tech savvy early, smaller businesses can use AI tools to increase efficiency and offer lower costs for standard services.
Platforms like ‘Ironclad’ and ‘Lawgeex’ enable smaller companies to streamline processes that were once resource-intensive, leveling the playing field in areas where Big Law might otherwise dominate. However, for more complex, high-level AI applications, especially in the area of predictive analytics, larger companies can still maintain an edge due to their ability to invest in more advanced tools.
Phase two: the strategic advocate who adds value beyond automation
As AI takes over routine tasks, the value lawyers bring will increasingly come from strategy, client relationships and navigating the growing field of AI regulations. Lawyers will need to manage AI tools effectively while ensuring ethical standards and client privacy are adhered to.
Furthermore, the human element in negotiations and client interactions will remain indispensable as AI can support, but not completely replace, the intuitive and creative aspects of legal practice. Tools like ‘Lex Machina’s Legal Analytics’ already provide data-driven insights, but the final decisions in courtrooms and negotiations will still require human finesse.
Predictive AI: the next frontier in legal practice
While generative AI has attracted a lot of attention, predictive AI – which uses historical data, statistical models and machine learning algorithms to predict legal outcomes and trends – will further revolutionize the legal landscape. These tools can already predict court outcomes, jury behavior and the effectiveness of specific arguments.
Predictive AI also holds promise for advising clients on investments and business valuations. For example, ‘Blue J Legal’ offers AI-driven predictions in tax law, providing valuable insights that help lawyers strategize more effectively. In mergers and acquisitions, tools like ‘Pitchbook’ use AI to predict the future growth of companies, giving clients a more informed perspective on potential investments.
Ethics and AI: building trust through regulation
For AI to be fully embraced, it must be trusted. In response, governments are constructing the frameworks necessary for the responsible and ethical rise of AI. The European Union’s AI Law, which came into effect in 2024, promotes safety and accountability in AI by targeting high-risk sectors such as healthcare, transportation and law enforcement.
Similarly, California’s Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, introduced that same year, sought to prevent catastrophic harm caused by AI, such as cyberattacks and the creation of weapons of mass destruction. However, the bill was vetoed amid concerns that the heavy focus on large-scale AI models risked overlooking the dangers of smaller, specialized AI systems. These early efforts highlight the elusive balance between bold innovation and moral imperatives to ensure AI’s potential is harnessed responsibly.
The human touch in an AI world
AI is here to stay and avoiding it would only hinder career growth in the long run. Lawyers who engage with AI, learn to use it effectively and understand how it will impact their practice will position themselves to thrive in the new AI-driven landscape.
The key to future success lies in combining human intuition, empathy and judgment with the capabilities of AI. While AI can streamline tasks and provide valuable insights, it cannot replace the nuanced decision-making and personal connection that define the legal profession. The lawyers who can leverage both AI and their own strategic thinking will be the ones who thrive in this new era.
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The opinions expressed are those of the author. They do not reflect the views of Reuters News, which is committed to integrity, independence and freedom from bias under the Trust Principles. Westlaw Today is owned by Thomson Reuters and operates independently of Reuters News.
