Generative AI (Gen AI) technology is posing new challenges and opportunities within the legal industry, potentially creating a divide between larger firms and their smaller counterparts. During a recent talk about the use of Gen AI in litigation, it became evident that many trial lawyers, particularly those specializing in courtroom skills, had not embraced or even explored the technology. Out of the room of lawyers, only a couple had interacted with ChatGPT, and none had applied generative AI in their legal work. Interestingly, a number of attendees were entirely unfamiliar with recent cases and studies related to Gen AI, such as the Avianca hallucinated-citations case and the Stanford study on AI hallucinations in legal research. Read more on LawNext.
The disparity in Gen AI utilization appears to be influenced by firm size. Larger firms typically have the resources, including innovation officers and knowledge management professionals, to incorporate Gen AI into their workflows effectively. These resources allow larger firms to test new technologies under secure and controlled conditions. Consequently, these firms are harnessing the benefits of Gen AI while smaller firms lag behind. This trend threatens to disrupt the equilibrium that once existed, where technology served as an equalizer enabling smaller firms to compete with their larger counterparts.
The focus of Gen AI product development also skews towards larger firms, driven by investment priorities. Despite some companies designing Gen AI tools for smaller firms, the majority of funding and development is targeted at big law, exacerbating the divide. This imbalance is further amplified by the high costs associated with Gen AI tools, making them less accessible to smaller firms.
Smaller firms need to address this growing gap. Bar associations can play a crucial role by providing resources and training on the practical applications of generative AI in legal practice. Vendors targeting the small firm market also have an opportunity to enhance their AI tool offerings and educate their users on these technologies.
Ultimately, it falls upon the smaller firms’ lawyers to delve into Gen AI, understanding both its capabilities and limitations. As the 11th U.S. Circuit Court of Appeals Judge Kevin Newsom remarked in his concurring opinion pondering the use of generative AI by courts, “AI is here to stay. Now, it seems to me, is the time to figure out how to use it profitably and responsibly.” This advice holds particular relevance for lawyers in smaller firms facing the decision to adopt or disregard Gen AI.