Leveraging AI in Legal Practice: From Efficiency to Intelligence

“We have this double standard – we are completely accepting of a lawyer making a mistake, but when a piece of technology is not 100% accurate, we have no time for it,” observes Tanja Podinic, Senior Vice President of AI Programs at ContractPodAi, during a recent Platforum9 session. Drawing from her 15 years of legal experience and current role at the forefront of legal technology, Podinic shares insights on how law firms can effectively leverage AI beyond basic efficiency gains.

Beyond Productivity Gains

While efficiency improvements are often the initial focus of AI adoption, Podinic emphasizes that they represent merely “the tip of the iceberg.” The real value lies beneath the surface – in the intelligence and insights that AI can extract from unstructured data, negotiation strategies, and historical contracts.

Practical Applications

One compelling example she worked on involved a private equity fund with 550 portfolio companies. Using AI, they transformed their quarterly reporting process from a 26-week manual exercise to a two-week automated analysis. More importantly, the AI solution enabled the client to gain new strategic insights about industry trends, board seat patterns, and investment decision-making that weren’t previously possible. This represents a significant shift in the use of GenAI.

The Human Element

Despite AI’s capabilities, Podinic emphasizes the continued importance of human skills: “One thing lawyers are dropping so quickly, and it’s so critical, is social skills – the ability to interact with human beings in a way that isn’t awkward, where you look someone in the eye, have a conversation, and be self-aware.”

Implementation Challenges

For firms considering AI adoption, Podinic recommends starting with clear problem identification: “Always start with the problem. What problem do I have? And then what is the most viable solution that I can take to solve either 50 percent or 90 percent of that problem?”

Getting Started with AI

For lawyers looking to begin their AI journey, Podinic recommends three key steps:

  1. Gain basic understanding of AI capabilities and current developments
  2. Analyze your daily tasks to identify areas where AI could add value
  3. Think strategically about client needs beyond immediate legal questions

Small Firm Considerations

While large firms may have resources for comprehensive AI implementations, smaller firms aren’t excluded from the AI revolution. Podinic advises them to:

  • Focus on finding their niche
  • Identify areas where human expertise trumps technology
  • Start with free versions of tools like Claude or ChatGPT
  • Emphasize relationship-building and strategic thinking

Looking Forward

The legal profession stands at a crucial juncture. “In two to three years time,” Podinic predicts, “we’ll probably be working in a profession that is somewhat unrecognizable to what we are working on today.” However, she emphasizes that AI will augment rather than replace legal expertise, particularly in complex decision-making and client relationships.

For firms and lawyers alike, the message is clear: while AI adoption may seem daunting, failing to engage with these technologies poses a greater risk. As Podinic concludes, “If you work in a law firm that is not utilizing generative AI right now, I would be really concerned… There will come a point where those law firms who have been utilizing and testing use cases will be so far ahead that it’s going to be extremely difficult for the latter to catch up.”

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