Generative AI has the potential to transform the legal industry, not only by automating manual work, but also offering creative solutions for tasks like drafting legal documents, conducting research, and analyzing complex data sets. Responsible use and a realistic understanding of AI's risks and capabilities are paramount to maintaining confidentiality and data security.
Here's how law firms can ethically leverage artificial intelligence to enhance operations and reshape client service with an emphasis on security, transparency, and vendor dependency.
CURRENT CLIMATE
Understandably, there is some trepidation within the legal field about incorporating artificial intelligence into practice. The primary reason for this apprehension is confidentiality. Yet, despite this valid concern, an increasing number of attorneys and law firms are embracing automation and AI as an essential technology of the future.
According to a recent survey by LexisNexis, nearly half (47 percent) of all lawyers believe generative AI tools will significantly transform the practice of law, and almost all (92 percent) believe it will have at least some impact. What will the impact be? Well a majority, 77 percent, believe generative AI tools will greatly increase the efficiency of lawyers, paralegals, and law clerks.
Given these numbers, it's clear that AI technology is no longer a discretionary choice in the legal industry, but rather a strategic requirement to remain competitive.
Further, with the growing popularity of online tools such as ChatGPT, the number of individuals seeking advice from open-source AI as an alternative to legal professionals is also on the rise. To address this, those in the legal industry must find a way to educate consumers and leverage safe AI technology to close the gap and become a more effective, forward-thinking firm.
TOP BENEFITS AND USE CASES
In business, and in the legal industry specifically, generative AI has the power to revolutionize the way organizations operate. In particular, the right AI tool will enable users to:
- Streamline and expedite the way tasks are performed
- Accelerate and optimize decision-making
- Leverage creativity to produce new content
Let's take requests for proposals (RFP) as an example. It takes a significant amount of time to read an RFP, consume that information, draft an industry-specific response, and assemble the appropriate team. With generative AI, the RFP becomes the input, and a request can be made to return the top 10 responses for the industry in question. The AI engine can then use this output to draft a new custom response.
AI can also identify which individuals within the organization would be best suited to issue the response to the client, create a PowerPoint presentation, draft an email, and more. This entire process would take only a few minutes to complete.
Another example of how artificial intelligence can be leveraged for greater efficiency in the legal industry is summarizing depositions. AI can save hours of time by quickly creating summaries and citations.
One important thing to note, however, is that the results produced by AI won't be polished and ready to utilize without review. The technology is designed to get you 70% of the way there, providing a much more favorable starting point. Additional expertise and creativity will still be required, but artificial intelligence will save a substantial amount of time and man hours in the process.
BEST PRACTICES FOR SUCCESS
As with any technology, there is a certain level of due diligence required before adopting artificial intelligence. This is especially true for organizations in the legal industry. Here are the recommended steps law firms should take when considering generative AI:
- Educate and train staff about AI and its potential value, as well as how to operate it safely and securely.
- Draft an acceptable use policy to establish clear guidelines governing AI usage within the firm. Specifically, this policy should spell out exactly what the technology can and cannot be used for, as well as the types of data users can share with the AI tool.
- Take proactive and ongoing measures to ensure data security when using generative AI technology. Carefully selecting the right tool is key.
- Practice transparency about AI usage, outputs, and the source of the AI models including any biases or training data inaccuracies.
- Demonstrate patience with adoption but also prioritize cultural adjustment to integrate AI into the firm's workflow progressively.
- Maintain dependency on vendors that have invested in AI and scrutinize their usage of data, especially in the face of new cybersecurity risks.
- Contemplate amendments to client engagement letters to accommodate the future use of AI.
- Consider the impact of artificial intelligence on offshoring models and the emergence of AI for task displacement.
- Take on an advisory role to guide clients in the best uses of AI technology in legal contexts. Educate consumers on the limitations and dangers of relying solely on open-AI sources.
UNDERSTANDING AND MITIGATING RISKS
There are certain inherent risks associated with the use of AI, particularly in the legal sector. However, most of these concerns can be countered and their impact mitigated through education, understanding, and adaptation. The primary concerns are:
CONFIDENTIALITY
Law firms must be careful and strategic in choosing the right AI engine for their needs. Most prefer to take a conservative approach and avoid tools that are hosted in the cloud. Fortunately, there are ways to ensure security while using online platforms. Again, the answer to this lies in partnering with a well-vetted and trustworthy vendor.
KNOWLEDGE GAPS
AI technology is only as good as its training and, as a result, can have gaps in knowledge. The tool may attempt to fill these gaps with inaccurate information. This is known as "hallucination," a process through which the AI model will produce incorrect or misleading results. Transparency and understanding of the technology's foundation is critical in countering these issues.
TEMPERATURE
Creativity in generative AI is controlled by a variable called temperature, which determines the randomness and unpredictability of the AI's responses. This technology was designed to mimic human conversation and provide unexpected and varied responses, rather than always choosing the most probable outcome. Adjusting the temperature variable and instituting appropriate prompt engineering can reduce failure rates and increase success.
ASKMARCUM.AI AS A SOLUTION
Marcum Technology's AI engine, AskMarcum.ai, addresses the concerns listed above, particularly in terms of data security. It was built as an interface that sits within your existing ecosystem, not in the cloud, and once implemented, the data will be owned and operated solely by your firm.
All inputs and outputs are kept private and secure within the Azure instance. This provides the same level of security as Microsoft email or SharePoint. Users who are comfortable with the Microsoft ecosystem can activate and use AskMarcum.ai within their Azure environment.
GENERATIVE AI – THE WAY OF THE FUTURE
Modern law firms must recognize that generative AI technology, while not a replacement for professional expertise, can significantly expedite routine tasks and support decision-making processes.
However, confidentiality, data privacy, and ethical considerations are paramount, requiring firms to implement strict data management and acceptable use policies. Moreover, there's an imperative to educate and train staff to understand and integrate AI responsibly.
Vendors should also be scrutinized for how they handle AI and client data. While there's a cultural shift needed to adopt AI, it should be seen not as a job threat but as a task displacer, enhancing the value that legal professionals bring to their fields.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.