In November 2022, the world changed with the debut of Generative Artificial Intelligence (Gen AI) with the launch of ChatGPT. This technology was quickly followed by similar offerings from tech giants like Google and Microsoft. Although these AI tools amazed many with their ability to generate content seemingly out of thin air, it soon became clear that they were not suitable for more specialized tasks.
In the case of technology-savvy legal professionals, they realized that these tools failed when assigned the task of searching for judicial decisions to support legal arguments. The legal industry quickly understood that relying on general AI for legal tasks was impractical and needed to work on a new tool.
Legal AI – systems specifically trained for legal applications – is now the only viable path for law firms. "General AI models simply don't work for law firms; they need very specific and legally trained models," said Sean Fitzpatrick, CEO of LexisNexis Americas, the UK, and Ireland, in the Wall Street Journal. He noted that while there is much excitement about Gen AI in legal contexts, the practical application of these tools requires customized solutions.
Legal AI
There are several compelling reasons for law firms to transition from general AI tools to "Legal AI" systems. First, legal professionals require access to authorized and up-to-date legal resources, which general AI tools cannot provide. Second, Legal AI solutions benefit from the experience of seasoned lawyers who contribute their deep knowledge, ensuring that the tools are precise and reliable.
According to the LexisNexis 2024 Legal Innovation Investment Survey, which surveyed managing partners and senior leaders at top law firms, as well as corporate legal department executives at Fortune 1000 companies, the adoption of Legal AI is growing at an unprecedented rate. The survey revealed that 53% of Am Law 200 firms have already integrated Legal AI tools, and 45% are actively using them for legal tasks.
"This is real and moving very fast," Fitzpatrick said. The legal technology sector has already shifted to corporate legal departments with high usage rates of Gen AI tools.
Corporate clients facing issues like regulatory compliance, data security, and privacy concerns are increasingly turning to law firms with Legal AI.
"The potential for law firms positioned to help is vast. AI is no longer just a future consideration; it's a present need for law firms," concluded Fitzpatrick.
