Ever wished you had an in-house Harvey Specter or Mike Ross? Someone who could come up with whip smart strategies that win, or have a photographic memory where they can provide you exactly the most relevant details at the right time?
We’re not too far from that in the Age of AI.
A handy resource for legal teams
AI is revolutionizing the legal landscape, and its impact is only set to grow. Law firms and legal departments are quickly realizing the immense potential of AI to streamline operations, cut costs, and deliver superior client service.
So, what can AI actually do in the legal realm? Quite a lot, as it turns out. From automating routine legal tasks to conducting deep legal research, AI is proving to be a versatile tool. It can review and analyze contracts and documents with lightning speed, predict case outcomes with uncanny accuracy, and so much more. By leveraging AI, lawyers can free up their time to focus on the high-value, strategic work that really moves the needle.
But why is AI adoption suddenly surging in the legal world?
A big part of it is client pressure. Clients are demanding more bang for their buck - they want better service at lower costs. AI can help law firms deliver on both fronts. By boosting efficiency and productivity, AI enables firms to take on more clients and cases without sacrificing quality. For in-house legal departments, AI can be a budget-saver, freeing up resources to invest in other critical areas.At the end of the day, AI is a win-win-win for law firms, legal departments, and clients.
As long as it’s all reviewed before you present it in court though. You don’t want to be this guy who was sanctioned by a judge for submitting a legal brief written by ChatGPT that included citations of non-existent court cases.
As AI continues to evolve and mature, its transformative impact will only become more pronounced. Savvy lawyers who embrace AI now will be the ones best positioned to thrive in the future. Ignoring AI is no longer an option - understanding its capabilities and applications is an absolute must in today's legal landscape.
How AI is used in the Legal Industry
Document Review & Due Diligence
You know that scene in the pilot episode of Suits where Ross and Rachel walk into a conference room piled with boxes and boxes of paperwork from opposing counsel, and she says “they’re trying to bury you in paperwork”. Well, not a problem with AI.
AI can plow through massive volumes of legal documents in a flash, plucking out the relevant info you need. In due diligence, AI can be trained to spot key clauses, dates, names, and other crucial details in contracts and documents. This helps lawyers quickly pinpoint risks and insights, without getting buried in manual review.
Legal ResearchForget spending hours in the library - AI can do the heavy lifting when it comes to legal research. These smart systems can comb through enormous databases of case law, regulations, and legal resources to unearth relevant precedents and answers. It's like having a super-powered research assistant, helping lawyers construct ironclad arguments.
Contract AnalysisContracts can be a minefield of risks and pitfalls. But AI can act as a safety net, meticulously reviewing business contracts to flag key terms, potential risks, and any anomalies. With AI in their corner, lawyers can craft airtight contracts that protect their clients' interests.
Predictive AnalyticsCrystal ball, meet AI. Predictive analytics can help legal teams gaze into the future of a case, forecasting probable outcomes based on past rulings and judicial patterns. Armed with these insights, lawyers can provide their clients with more informed and strategic advice.
eDiscoveryWhen it comes to litigation, time is money. AI can be a huge cost-saver by rapidly sifting through massive datasets to pinpoint relevant information during the discovery phase. By accelerating investigations, AI helps keep legal costs in check.
The Numbers
The Generative AI in the legal industry market is expected to reach $811 Million by 2033, up from $60 Million in 2023.
AI Startups for the Legal Industry
Here are a few other up-and-coming companies that are using AI to support legal professionals:
- Harvey is a Gen AI platform for legal practices. It can help draft and analyze legal documents, and provide answers to complex research questions across multiple domains in legal, regulatory, and tax. Harvey has raised over $100 million from investors like Open AI’s startup fund and Sequoia, and is reportedly valued at $715 million.
- Eve is an AI-powered platform designed to handle legal tasks like document review, case analysis, client intake and research. Eve emerged from stealth last October with $14 million in funding from Lightspeed Ventures.
- LegalMation uses generative AI to help legal professionals to respond to legal matters such as lawsuits and discovery requests based on the client's historical responses. LegalMotion raised $15 million in October.
- Lex Machina provides AI-generated complaint summaries for district court case pages. The summaries surface the nature of the case, plaintiff and defendant information, alleged harm, and requested remedies to save hours of research time, identify client impacts, and increase business development opportunities. Lex Machina raised $4.8 million in May of last year.
- Darrow uses an AI-based data engine to ingests large amounts of publicly available documents and search for violations with class action litigation potential. Darrow is a Y Combinator alum (W21 batch), and most recently raised $35 million last September.
Naturally, applying AI to the legal space requires prudence. Tech company DoNotPay, dubbed “the world’s first robot lawyer”, planned to roll out a courtroom product in early 2023 but had to change course following “threats from State Bar prosecutors”. DoNotPay has also faced lawsuits for providing AI-enabled legal services without having a license to practice law, but recently beat one of the cases against them.