Generative AI’s Role in Reshaping Law Firms & How it Impacts Business Owners
In the dynamic world of business and law, something exciting is happening. Generative AI, like ChatGPT, is starting to change how law firms work. Don’t feel daunted, because it’s making things faster and smarter. It’s all good!
This is especially interesting for business owners in Australia, who might see big changes in how a corporate law firm deals with legal stuff.
In today’s blog, we’re going to look at the key findings of the Thomson Reuters Institute report and also highlight how the integration of Generative AI can impact small business owners in Australia.
So, let’s get started!
What’s Happening with Generative AI in Law?
Generative AI represents a form of artificial intelligence that’s really good at creating new stuff, quickly, like writing text. It’s becoming a big deal in lots of areas, including law.
Here are some key applications of AI that can be leveraged by a corporate law firm or business lawyers:
- Automating Boring Stuff: AI can write the first drafts of contracts and search through piles of legal documents and the results have less errors. This means lawyers at a corporate law firm can spend more time on the tricky parts of the law that need a human touch.
- Making Research Easy: AI can quickly identify important legal cases and information, which helps lawyers stay on top of their game.
- Helping Make Decisions: AI can look at past legal cases and help predict what might happen in new cases. This helps a corporate solicitor give better advice and make smarter choices.
- Improving Client Service: AI chatbots may soon be able to answer simple legal questions any time of the day, making it easier for people to get initial legal help quickly.
- Training and Development: AI can also be used for training new lawyers and legal staff, providing them with interactive and up-to-date learning tools and help to reduce human error.
- New Legal Products and Services: AI could lead to the development of new types of legal products and services, further expanding what law firms can offer.
What exactly did the report conclude?
A large study by the Thomson Reuters Institute asked over 440 lawyers from big and medium-sized law firms all over the world about AI in law. They found that a significant number of lawyers are getting interested in AI and can see its benefits.
The adoption of generative AI and ChatGPT
The survey inquired about applying generative AI or ChatGPT to legal tasks and whether it or not it should be done. In both cases, over half of the respondents answered positively.
- A significant majority of corporate attorney lawyers(82%) agreed that generative AI or ChatGPT could be used for legal work. Only 7% disagreed with this idea, while 10% were unsure.
- However, when asked if generative AI or ChatGPT should be used for legal work, opinions were more divided. Just over half (51%) of those familiar with these technologies supported their application in legal tasks. The rest were split between those against it (24%) and those unsure (25%).
- While 59% of partners and managing partners supported the use of generative AI in legal work, the figures were slightly lower among associates at 52% and even less among other lawyers (44%) within firms. This is because AI may reduce employment opportunities for junior lawyers and create difficulties for career progression for lawyers generally.
Consideration of generative AI for non-legal tasks within a law firm
Survey participants were more open to using generative AI or ChatGPT for non-legal tasks within a legal law firm, like providing basic question-and-answer services or handling administrative duties.
- Nearly three-quarters (72%) of respondents supported the application of generative AI or ChatGPT to non-legal tasks within a firm, which was 21% higher than their support for its use in legal work.
- Only 7% opposed its use for non-legal tasks, while 21% were unsure.
Implementation of generative AI within law firms
Despite the belief among many attorneys and professionals in law firms that generative AI or ChatGPT is suitable for legal work, the adoption of these tools within law firms has so far been minimal.
- In total, only 3% of respondents stated they are presently using generative AI or ChatGPT for legal firmoperations, and an additional 2% mentioned active plans for its implementation.
- Approximately one-third of respondents (34%) are still contemplating the use of generative AI and ChatGPT. The issue in the short term is the cost of AI solutions.
- 60% indicated that they currently have no plans to incorporate generative AI into their firm operations.
- Among respondents from large law firms, 40% were considering adopting the technology, while this stood at 31% among midsize law firms.
- Additionally, large law firms were marginally more likely to already use the technology, with 5% of respondents from large firms indicating current usage compared to 2% among midsize firms.
Risks associated with AI usage in law firms
The notable gap between the perceived potential benefits of generative AI and its actual implementation might stem from its associated risks.
- A striking 62% of all respondents noted that their law firms held apprehensions regarding the use of generative AI in the workplace.
- Furthermore, an additional 36% admitted to not being aware of their firm’s stance on the risk factors involved.
- Only 2% of respondents stated that their firms had no reservations concerning the use of generative AI or ChatGPT at work.
- Interestingly, these responses exclusively originated from midsize firms, as none of the 157 company lawyer respondents from large law firms claimed their firms had no concerns about the technology’s risk implications.
- Respondents predominantly categorised their concerns into four main areas: accuracy, privacy, confidentiality, and security.
How will AI change things for small business owners?
If you own a small business, AI in law could be great news. Here’s why:
- Lower Costs: AI can do some of the routine legal and non-legal work, which might make legal services cheaper. However, self-help AI legal advice would be at the user’s own risk and could be risky.
- Faster Help: AI works super-fast, so you can get legal help quicker.
- Always There: Unlike a human company lawyer, AI tools don’t need to sleep! You can ask legal questions any time with AI chatbots.
- Staying Out of Trouble: With proper implementation, AI can help make sure your business follows all the legal rules. In fact, lawyers might give even better advice with the help of AI.
- Customised Legal Solutions: AI can analyse a business’s specific needs and assit with the provision of tailored legal advice. This potentially means more personalised service for business owners once lawyers become used to using AI.
- Enhanced Legal Analytics: AI can process and analyse large volumes of legal data to uncover trends and insights. This can help law firms offer more strategic advice to their clients.
Wrapping up
While the initial take-up is slow, generative AI is changing the legal world, making its processes faster and more accessible. It’s an exciting time for law firms and business owners.
If you’re running a business, watch this space! AI could potentially make dealing with legal stuff a whole lot easier. Ultimately, having a good corporate solicitor or corporate attorney lawyer on your side is always the smartest move, guiding you into the future!