It has already happened several times that legal representatives have used AI-generated text with troubling results. Attorney Chong Ke cited case law invented by ChatGPT in a family law case in Canada, while New York attorney Steven Schwartz also cited false AI-generated background.
Both were trying to find more effective methods to prepare their cases and research legal precedents, but they left out a very important part of the job: practicing conscientious review. Still, could we be looking at the most important change in the industry in years?
Use cases: from drafting to due diligence
- Contract drafting and review: AI-based tools, such as Bloomberg Law's Draft Analyzer, facilitate the drafting process by identifying alterations to standard language. This not only speeds up drafting, but also introduces a level of accuracy that was previously almost unattainable.
- Comprehensive analysis: this type of technology can help lawyers analyze large quantities of documents to identify potential risks and liabilities. This capability enables legal teams to conduct thorough reviews with unprecedented efficiency, reducing the time and cost associated with due diligence processes.
- Strategies for negotiation: AI's ability to analyze historical contract data provides lawyers with information on negotiation trends and party preferences. This information can be leveraged to develop more effective negotiation strategies, which can lead to more favorable outcomes.
Ethical considerations and best practices
Of course, the adoption of AI in legal practice raises important ethical considerations. We need only look at the cases mentioned above of Chong Ke and Steven Schwartz. They just wanted to streamline their work, but the AI tool they used made up certain legal precedents that did not exist, so both lawyers lost all credibility in their respective trials.
Because of this, legal professionals must make an informed decision when selecting AI tools, prioritizing ethical standards and reviewing the results they provide. Human oversight remains crucial; lawyers must verify AI-generated results to ensure they meet legal and professional requirements.
The future of law in the age of AI.
As artificial intelligence continues to advance, its integration into law is expected to deepen, bringing further efficiencies and innovations. Future developments may include more sophisticated predictive analytics for contract outcomes, enhanced natural language processing capabilities for better understanding of legal documents, and even blockchain integration for secure and transparent contract enforcement.
The role of lawyers will evolve in parallel with these technological advances. As they will increasingly be able to focus on high-value activities such as strategic planning, complex negotiations and client relationships. Moreover, legal education and training will have to adapt, equipping new lawyers with the necessary skills to effectively use AI in their practice.
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