In an era defined by rapid advances in technology, the legal landscape of corporations and law firms is shifting as digitisation permeates every facet of operation. The role of artificial intelligence (AI) in legal proceedings, in particular, is restructuring the traditional ways law firms work and how corporate legal teams navigate proceedings.
One significant change AI brings is in document review and analysis. Research by McKinsey Global Institute suggests that 22% of a lawyer’s job and 35% of a law clerk’s job can be automated, with the highest potential lying in document review, corporate due diligence and analyzing contracts. Common tasks such as drafting legally binding contracts, sifting through legal documents, conducting legal research, and reviewing merger and acquisition-related documents can now be efficiently expedited with AI (McKinsey).
In 2018, JP Morgan launched an in-house machine learning programme, COIN, which reportedly conducts document review tasks in seconds, a task that previously took legal aides thousands of hours annually (CNBC).
This raises questions about the roles that humans will play in the future of legal work. However, the presence of AI in the legal sphere does not signal the extinction of traditional legal roles. Instead, it highlights an avenue where legal professionals can focus their expertise. For instance, the role of legal counselling that requires emotional intelligence, persuasion, and the human touch would be far from AI’s reach.
Another influence that AI has on the legal profession pertains to ethical and practical considerations. Several legal scholars have raised concerns regarding AI’s ability to adhere to professional ethics, an aspect central to legal praxis. In addition, certain AI technologies may breach anti-competition laws due to their potential to reduce or eliminate competition by consolidating market power (University of Oxford).
In conclusion, the adoption of AI in the legal profession is a double-edged sword. On one hand, it streamlines certain administrative tasks and offers more time for intensive analytical work. On the other hand, the ethical and practical implications call for a careful approach to its application.