The AI Anxiety
“Is there even any point in looking at document automation when soon generative AI is going to take over everything?” This pointed question, posed to Catherine Bamford, CEO of BAM Legal, encapsulates the uncertainty rippling through law firms. Yet after 20 years in legal technology, Bamford sees a more nuanced reality emerging.
Breaking Down the Document Creation ProcessÂ
Legal document creation involves distinct tasks:
- Initial draft creation
- Customisation with specific details
- Negotiation and revision
- Recording and reporting
- Client advisory documentation
“You have to break it down into tasks and types,” Bamford explains. “It’s about identifying when each tool is most effective to achieve your goal.”
The Evolution of Tools
Legal document creation has evolved through distinct phases:
- Traditional manual drafting using precedents
- Deterministic document automation with if-then logic
- AI-enhanced drafting solutions
“It’s not been as successful as many would have thought,” Bamford acknowledges of traditional automation, while emphasizing that each approach has its place.
The Power of Precedent
For transactional documents, Bamford maintains that traditional automation remains the gold standard, with a clear hierarchy of approaches:
- Using firm-approved automated precedents
- Leveraging industry-standard third-party precedents
- Drawing from previous examples
- Using AI only when no precedents exist
AI’s Sweet Spots
Generative AI shows particular promise in specific areas:
- Witness statements: “Generative AI is excellent at generating text from notes or recordings”
- Board minutes: “Anyone that’s tried to ever automate board minutes knows it’s actually a real pain”
- Advisory documents: Improving readability and identifying missing elements
- Document conversion: Transforming PDFs into editable formats
The Security Question
Recent incidents have highlighted the importance of careful tool selection. “Please don’t feed client interview notes into ChatGPT,” Bamford warns, emphasizing the need for legal-specific AI tools that have passed rigorous security requirements.
Emerging Hybrid Solutions
The future may lie in combining approaches. “There are several experiments going on at the moment in some firms where it’s combining generative AI tools with deterministic, logic-based tools,” Bamford notes. Some systems are already working to merge AI capabilities with traditional automation, though such integration is still in early stages.
Hope for Smaller Firms
For smaller firms feeling caught between innovation and practicality, Bamford offers reassurance: “There are definitely tools out there, and often, firms of those size (SME) are actually doing a lot of volume work.” The key is finding “low code, no code” solutions that firms can implement themselves in a cost effective way.
Contract Review Evolution
In the realm of contract review, Bamford notes significant progress: “There was some really thorough piloting done on this… it was really impressive.” However, success depends heavily on having a good playbook and understanding that setup is crucial for accuracy.
The future of legal document creation isn’t about replacing existing systems but combining technologies thoughtfully. Success lies in understanding which tool best serves each specific task, whether that’s automated templates for high-volume transactions or AI assistance for unique drafting challenges. For law firms navigating this transition, the answer lies not in wholesale replacement, but in thoughtful combination of tools that enhance rather than disrupt legal practice.
