(October 24, 2024) - Jeremy Glaser and Sharzaad Borna of Mintz discuss waves of change in the legal profession brought on by AI, in areas such as billing, the work of support staff and junior associates, and ethics.
The dual nature of AI — excitement and fear
AI is evolving at lightning speed, sparking both wonder and worry. As it transforms industries and our daily lives, we are caught between the thrill of innovation and the jitters of uncertainty. Will AI elevate the human experience or just leave us in the dust? How will it impact our careers, privacy and sense of security?
Just as we witnessed with the rise of the internet — and later, social media — AI is poised to redefine how we work and live, bringing a mix of optimism and apprehension. While we grapple with AI's implications, our clients expect us to lead the charge in leveraging it for their benefit.
Phase one: Client pressure and the legal industry's cautious approach
The first wave of change in the legal profession will likely come from clients — especially those who are tech-savvy and corporate-oriented. They will expect law firms to incorporate AI into their services because of the potential cost and time savings. However, the legal field has a reputation for being cautious, and for good reason. Lawyers have fiduciary duties, ethical obligations, and regulatory frameworks to navigate.
The reluctance to adopt AI too quickly reflects the need for careful consideration of its risks and benefits. Law firms must balance this client pressure with a commitment to maintaining their professional and ethical responsibilities.
Efficiency and billing: the end of hourly rates?
AI's ability to streamline repetitive tasks like document review, drafting, and legal research means that billing clients by the hour may soon become outdated. As law firms adopt AI, the traditional billing structure will likely shift to flat fees or performance-based pricing, particularly in areas like M&A.
Platforms like "Relativity" for e-discovery and "Harvey" for contract review are already automating these processes, delivering results in a fraction of the time previously required. These tools are revolutionizing the way law firms approach their services, forcing them to rethink how they bill for their time and expertise.
AI as the new junior associate: Competition over fewer human positions
One of the immediate consequences of AI integration will be a reduced need for support staff and junior associates. Historically, these roles have handled administrative, repetitive tasks that AI can now perform with greater efficiency.
Tools like "ChatGPT" can assist with research, drafting, and other tasks with some guidance and multiple rounds of edits, much like a fast-learning junior associate might. The good news is that junior associates can now focus on higher-level tasks, positioning them for faster career growth.
However, this shift also means more competition for fewer entry-level jobs. Law schools will play a key role in helping students become more marketable by offering courses on AI tools and technology. Graduates with AI literacy will have an edge over their peers, as firms increasingly value associates who can collaborate effectively with AI tools.
Law schools like Stanford and Duke have already introduced legal tech courses, preparing the next generation of lawyers for an AI-driven profession.
Smaller law firms: leveling the playing field?
AI presents an opportunity for smaller law firms to compete with larger firms, at least for more common tasks. By becoming tech-savvy early, smaller firms can use AI tools to increase efficiency and offer lower fees for standard services.
Platforms like "Ironclad" and "Lawgeex" allow smaller firms to streamline processes that were once resource-intensive, leveling the playing field in areas where Big Law might otherwise dominate. However, for more complex and high-level AI applications, particularly in predictive analytics, larger firms may still maintain an edge due to their ability to invest in more advanced tools.
Phase two: the strategic lawyer adding value beyond automation
As AI takes over routine tasks, the value lawyers bring will increasingly come from strategy, client relationships, and navigating the growing field of AI regulations. Lawyers will need to manage AI tools effectively while ensuring that ethical standards and client privacy are upheld.
Additionally, the human element in negotiations and client interactions will remain indispensable, as AI can assist but not fully replace the intuitive and creative aspects of legal practice. Tools like "Lex Machina's Legal Analytics" already offer data-driven insights, but the final decisions in courtrooms and negotiations will still require human finesse.
Predictive AI: the next frontier in legal practice
While generative AI has grabbed much of the attention, predictive AI — which uses historical data, statistical models, and machine learning algorithms to forecast legal outcomes and trends — is set to revolutionize the legal landscape further. These tools can already forecast litigation outcomes, jury behavior, and the effectiveness of specific arguments.
Predictive AI also holds promise for advising clients on investments and company valuations. For example, "Blue J Legal" offers AI-driven predictions in tax law, providing valuable insights that help lawyers strategize more effectively. In M&A, tools like "Pitchbook" use AI to predict the future growth of companies, giving clients a more informed perspective on potential investments.
Ethics and AI: building trust through regulation
For AI to be fully embraced, it must be trusted. In response, governments are constructing the frameworks necessary for AI's responsible and ethical ascent. The European Union's AI Act, which took effect in 2024, promotes safety and accountability in AI by targeting high-risk sectors such as healthcare, transportation, and law enforcement.
Similarly, California's Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, introduced the same year, sought to prevent catastrophic harm caused by AI such as cyberattacks and the creation of weapons of mass destruction. However, the bill was vetoed, with concerns that its strong focus on large scale AI models risked overlooking the dangers posed by smaller, specialized AI systems. These early efforts highlight the elusive balance between bold innovation and moral imperatives to ensure AI's potential is harnessed responsibly.
The human touch in an AI world
AI is here to stay and avoiding it would only hinder career growth in the long run. Lawyers who engage with AI, learn to use it effectively, and understand how it will affect their practice will position themselves to thrive in the new AI-driven landscape.
The key to future success lies in combining human intuition, empathy, and judgment with AI's capabilities. While AI can streamline tasks and provide valuable insights, it cannot replace the nuanced decision-making and personal connection that define the legal profession. The lawyers who can harness both AI and their own strategic thinking will be the ones who thrive in this new era.
Originally published by Westlaw Today.
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