Since its inception, generative AI has massively transformed business operations. While it poses ethical challenges, several professions are hopeful about its potential.
Recently, the legal industry has joined those seeing hope in generative AI as it integrates into in-house legal teams. Financial Times mentioned that companies like ASML, a leader in chipmaking equipment based in the Netherlands, are pioneering this shift by introducing specialized roles such as legal prompt engineers.
The role of a legal prompt engineer will involve creating specific instructions or queries for AI systems. These instructions help the AI generate legal documents and analyses more effectively. The goal is to automate tasks such as drafting and reviewing contracts, improving the quality and accuracy of legal work.
These professionals will be using AI capabilities to improve legal service delivery, a concept gaining traction globally.
At the same time, law firms like Allen & Overy and DLA Piper are also exploring AI's practical applications in legal settings, from data analysis to client communications, according to Bloomberg Law.
Generative AI in Legal Teams
ASML and similar companies are adopting generative AI to enhance their operations, aiming to streamline processes and stay current with technological advancements in the legal field.
However, whether generative AI will be a fresh start for legal teams remains uncertain, considering the future of in-house legal departments that may blend traditional legal expertise with AI proficiency. This collaboration could foster environments where lawyers closely collaborate with technology experts, potentially placing many legal teams or consultants at the forefront of using AI for competitive advantages and long-term regulatory compliance.
In fact, analysts from Thomson Reuters expect that within one to three years, generative AI tools designed to handle routine legal functions and support roles will be widely adopted. This phase will likely focus on internal efficiency gains and cost optimization.
By the three-to-five-year mark, more complex legal tasks will be under the purview of Gen AI, prompting law firms to reevaluate their business models and redefine client relationships based on the now-improved technological capabilities.
Further into the future, spanning five to ten years, generative AI could lead to a complete automation of legal services, potentially reshaping client expectations.
Despite the promising potential of generative AI tools like ContractMatrix, which aids in contract management by suggesting clauses and improving drafting precision, challenges persist.
Issues such as data biases and the need for robust data governance frameworks loom large. Legal departments, including those at Conduent, have encountered challenges in deploying AI effectively.
Experts from Electronic Frontier Education believe a cautious approach is still necessary to ensure compliance and mitigate risks associated with sensitive legal matters.
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