In a recent Platforum9 Session, Chris Williams and Ciara O’Buachalla, both active in the legal tech space, shared their expertise on the best use cases for AI in the legal sector. The discussion shed light on the current state of AI adoption in law firms and provided valuable perspectives on its future.

The AI Adoption Landscape

The conversation began with an acknowledgment of the rapid changes in the legal tech landscape since the advent of ChatGPT. Chris Williams, who recently joined Leya, a newcomer to the legal AI space with over 120 clients across Europe, the US, and Australia, noted, “With the rise of this wave of technology being Gen AI, one of the most pressing questions has been what are the use cases that are applicable for it?”

Initially, there was scepticism and resistance from law firms, citing concerns about copyright and confidentiality. However, the attitude has shifted significantly. As Williams observed, “I would still say that it’s very varied depending on the firms that you’re speaking to. When we look at the ones that have maybe got a little bit further along, there’s definitely a sense of how can we kind of evaluate the current technology that’s on the market.”

Firm Size and AI Adoption

Interestingly, the experts noted a difference in approach between large and small firms. Larger firms tend to take a more cautious, evaluative approach, while smaller firms see AI as an opportunity to leapfrog into innovation. O’Buachalla, an Irish qualified lawyer with experience in both large firms and AI co-pilots for small firms, pointed out, “Small firms have the advantage of like, okay, what are the risks here? What can we put in? What can we not, what can we try out? And so it gives them a competitive advantage in terms of trying out new AI software much faster and quicker than larger firms.”

However, O’Buachalla also highlighted a significant challenge for smaller firms: digitisation. “A lot of small firms are still working off a huge amount of paper,” she noted, suggesting that the transition to digital systems might be necessary before fully embracing AI.

Identifying AI Use Cases

Williams provided a framework for identifying AI use cases in legal work:

1. Break down legal work into individual tasks.

2. Understand “AI Actions” such as extract, compare, organise, label, find, draft, summarise, and forecast.

3. Match these actions to the tasks that need to be completed.

He emphasised, “If you can start to understand these actions and you break down your legal work into these various tasks that you need to complete, you can often see a combination of these type of actions or what needs to be done.”

In-House vs. External Counsel

The discussion highlighted a notable difference in AI adoption between in-house and external counsel. A Session participant observed, “It seems to me that inside counsel are much more accepting of AI than I find the external counsel, particularly among the larger firms.”

This difference was attributed partly to the billing structure. As O’Buachalla explained, “On the in-house counsel space, because you’re no longer, say, billing per hour. And your motivation is to get as much work done between your 9 to 6 or 9 to 7, whatever it is.”

However, Williams noted that in-house teams often face more stringent compliance requirements when adopting new technologies. Further being added, “It is one of the big hurdles of an, when trying to get an in-house team onboarded is actually their own compliance.”

The Human Element in Legal AI

Our Moderator team of Williams and O’Buachalla agreed that certain aspects of legal work remain beyond the reach of AI. These include:

1. Ultimate decision-making and judgement

2. Considerations of reputation and values

3. Personal relationships with clients

4. Negotiation and mediation

As one participant put it, “AI is not going to do judgement.”

Challenges and Future Directions

The discussion touched on several challenges and future considerations for AI in legal:

1. The need for “lawyer in the loop” approaches rather than fully autonomous AI agents

2. Adapting billing practices to incorporate AI usage

3. Identifying areas of legal work that will remain “untouchable” by AI

Williams suggested, “If we can also identify the spaces where AI or technology cannot kind of touch it, then it means that if we turn around all the other spaces should be areas that we can look at for good use cases.”

Conclusion

The session provided a comprehensive overview of the current state and future potential of AI in the legal sector. While challenges remain, particularly around adoption, compliance, and identifying the most effective use cases, Williams and O’Buachalla agreed that AI is set to play an increasingly important role in legal practice, and one we will be discussing a lot in the future.

As the legal industry continues to evolve, firms of all sizes will need to carefully consider how to integrate AI into their workflows, balancing efficiency gains with the irreplaceable human elements of legal practice. The key, it seems, lies in viewing AI not as a replacement for lawyers, but as a powerful tool to augment and enhance their capabilities.