Generative AI and Increased Legal Tech Flashcards
Generative AI and increased legal technology
-Generative AI and increased legal technology.
-Innovative and forward focused legal teams are focused heavily on utilising AI to automate and streamline legal processes and routine tasks.
-From contract scanning, first drafts, legal research and regulatory monitoring, AI can overhaul how teams are working.
However, AI is not the only tool legal teams are interested in. Technologies such as CLM’s, Legal entity management and e-billing tools are more common in legal teams however, are still equally important. -From understanding how to utilise their full capabilities to ensuring the first installation is effective.
If they do
If legal teams are to adopt generative AI at this stage, they will see a negative impact on speed, reliability and efficiency. Regarding other tools, mastering their use will also lead to a competitive advantage as well as creating a solid base for the legal team to improve on as time progresses.
If they don’t
Without adopting AI now, or at least beginning to educate oneself on the landscape and the ability of the tool will lead to eventually losing the ability to stay on top of workload and risk continuing manual and repetitive tasks for lawyers inhibiting innovation.
Strategies
Large organisations and legal teams will often look to build their own LLM’s as they have the existing data and resources to do so. This make compliance and data privacy slightly easier. However, the downside to this can be the lack of updates to tools and they often are out of data fairly quickly.
On the other hand, organisations will buy available tools on the market. Whether this be Luminance, ContractPod, or Copilot. These are costly. Alongside this, there are more and more popping up on the market every day so making your way through the market can be time consuming. As such this is often left to legal operations teams to handle.
Solutions
Attending events such as this allow legal ops people to not only hear from the vendors themselves but also discuss with peers as to their approach to adopting AI solutions.
Internal education as to what AI can do for the legal team and its risks are essential before adopting tools.
Inhibitiors
Tools are very expensive for legal teams and can be difficult to justify.
Regulatory and compliance concerns can inhibit AI procurement as well as ensuring data privacy. The EU AI Act is now in force and can have punishments of up to 7% of revenue if not adhered to.
Data privacy is key for organisations. Data is often sensitive and organisations unwilling to share this with the owners of the LLM’s such as Google or Microsoft
Lack of maturity of AI solutions. Lawyers have concerns over the accuracy of AI solutions as well as the risk of hallucinations.
