Pitfalls to avoid when adopting Legal AI
22 October 2024 12:00
Mark Ford, a founder of Ford Sumner Lawyers and Executive Director of the Law Plus collaborative law firm group, has seen the legal profession change dramatically over the course of his career. From the days of faxes and pen-and-paper workflows to today’s cutting-edge AI tools, technology in the legal sector has evolved at an unprecedented pace.
However, according to Ford, the real shift is only just beginning. The improved automation and research capabilities of AI technology mean two things – lawyers can get things done faster than ever, and as a result, they can enhance profitability without compromising on quality of service.
“Some of the most exciting possibilities of technology are for law firms as a business,” Ford tells NZ Lawyer.
“This is particularly true for smaller firms who don’t have the ability to install an expensive CRM system, for example. AI tools provide a real opportunity for these smaller firms to operate more professionally, effectively, and therefore profitably.”
Boosting productivity through automation
Law firms are notoriously tricky businesses to manage, with much of their productivity tied directly to human effort. Lawyers often struggle to carve out time for non-billable tasks like business development and administrative work—but automation is quickly emerging as the answer. Tools like Copilot simplify everyday admin by automatically creating timetables, crafting daily action points, and managing diaries.
When it comes to legal work, AI has faced its fair share of scepticism – particularly due to high-profile cases where tools like ChatGPT were used to generate flawed legal arguments and hallucinated cases. However, Ford notes that the issue lies not with AI itself, but rather, how it’s used.
While general AI like ChatGPT may not yet be ready for complex legal applications, more specialised, proprietary tools like Lexis+ offer a “safer space” for firms to integrate AI effectively into their practice.
“If you look at Lexis+, it gives you a whole new level of analysis,” Ford explains.
“That allows the experienced lawyer to treat it as if it’s come from a junior lawyer. That means checking, measuring, and adjusting. These dedicated and proprietary AI tools are definitely the ‘safer space’ at the moment, and I think investing into this kind of development is really important.”
AI’s impact extends to legal analysis, where it can sift through extensive data to offer a thorough case review. However, Ford cautions that these tools should still be seen as a “first run,” not a final answer.
“I would regard these tools as being akin to a very quick and thorough legal graduate,” he says. “Not necessarily bringing the kind of experience or business acumen to the research that you need, but still doing a thorough job.”
“AI-enhanced research is also more likely to pick up things that may be outside of the lawyer’s own past experience, and therefore provide more holistic options for clients,” he adds.
“Clients expect competence and expertise in lawyers, but the one thing they really value is industry experience. I think AI gives lawyers an opportunity to present that far more quickly through these research tools.”
The various applications of AI in law
Beyond research, AI is also transforming other areas of law firm management– from helping junior lawyers to become more confident in their work, to providing comprehensive business analysis.
With its ability to analyse how time is spent on specific tasks, AI can identify inefficiencies, highlight roadblocks, and pinpoint areas where team members may need additional training. It can also pinpoint which areas of the market might be growing or falling in demand, allowing law firms to make more informed business decisions.
AI can also play a crucial role in supporting junior lawyers as they transition from academic environments to the realities of legal practice. Ford highlights the pressure young lawyers feel when their work suddenly impacts real clients’ lives.
“Opinion work or research at university doesn’t have any consequences, aside from their personal marking and degrees,” Ford says.
“When they start practicing, it’s the first time they have to actually deal with other people’s lives in their hands. If an AI tool can give them the confidence to start learning how judgements are made, that’s a fantastic progression that will allow them to develop faster.”
Ford notes that this should also help younger lawyers to become more attuned to the client’s state of mind, and what their ‘hot buttons’ or pressure points might be.
“Client empathy is such an important skill for lawyers, and I think that’ll be enhanced with these technological aids,” he says.
Looking ahead, AI is likely to reshape the future of legal services entirely. Ford envisions a segmentation of services, where minor legal issues are handled through automated, telehealth-style platforms, while more complex cases still require personal, high-touch legal counsel.
“The ‘de minimis rule’ has always been a problem in law, which is the idea that law is not concerned with small things,” Ford says.
“But now, access to civil justice and civil disputes is going to be enhanced by AI. The human contact side is going to become a kind of luxury model, and there will always be a demand for personalised relationships with a trusted counsellor.”
Ultimately, these developments all highlight a major shift in how legal professionals will approach their work. Ford notes that he’s already started ‘under-promising’ to clients, simply due to the incredible speed at which AI now processes tasks. This allows lawyers to achieve results faster and with more precision, breaking away from the slow, methodical approach that has traditionally defined the profession.
Ford encourages lawyers to get on board the AI train now, and to take some calculated risks. With the flexibility of cloud-based tools, transitioning between systems easier than ever – so if one tool doesn’t work, you can always ‘change at the next station.’
Most importantly, AI tools present a much-needed opportunity for a better work-life balance.
“This is a great opportunity for lawyers to have a bit more of a life!” Ford says. “So my advice would be to grasp that with both hands, and take it.”
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