AI in the Legal Industry: Progress and Concern

The use of AI in the legal industry has emerged as a potential solution for managing routine tasks and optimizing workflows. Some legal professionals have begun exploring AI tools for document review, research and basic contract analysis, though adoption remains measured. We’ve all heard anecdotal news of someone using ChatGPT to submit a fully hallucinated brief with false information and fabricated citations as fact. 

In this article, we cover the progress of AI in the legal industry, as well as some of the concerns that this progress is generating.

While general-purpose AI tools (like ChatGPT) were initially considered, attention has gradually turned to specialized legal applications that operate within established practices. Some firms are evaluating modular platforms and customized AI models designed to codify standard practices while maintaining traditional quality controls. Although the extent to which your firm can benefit from AI will vary depending on its size and type of law you practice, you should be aware of the progress – and players – in the areas below.

AI-powered platforms like Lexis+ AI have revolutionized legal research by providing precise, contextually relevant answers to complex queries. These tools integrate vast legal databases with natural language processing capabilities to streamline research processes. Features such as judicial analytics and brief analysis tools help lawyers identify relevant precedents, validate citations and craft more effective arguments.

Generative AI is extensively used for contract lifecycle management (CLM). Tools like Harvey analyze complex contracts, extracting key provisions, risks and obligations with remarkable accuracy. They also assist in drafting contracts that comply with jurisdiction-specific requirements. This automation reduces time spent on routine tasks while ensuring consistency and compliance.

Predictive analytics in tools like Lex Machina or Premonition have become a cornerstone of modern legal practice. AI algorithms analyze past case data, jurisdictional trends and settlement patterns to forecast case outcomes and suggest optimal strategies. This capability enables lawyers to make data-driven decisions and improve their litigation strategies.

AI tools like NexLaw’s Trial Copilot assist attorneys during trials by pulling up relevant case law in real time and suggesting objections or procedural guidance. These platforms also organize case materials chronologically and flag missing evidence or inconsistencies in witness statements.

By automating routine tasks like billing and discovery, AI frees up lawyers to focus on building stronger client relationships. Tools also provide insights into client communication trends and recommend strategies for improving client engagement.

Law firms are investing in proprietary AI systems that emulate their best lawyers’ expertise. These models handle tasks such as due diligence, compliance monitoring and investigations at scale without additional human resources. This approach allows firms to expand their service offerings while maintaining high standards of quality.

Legal AI assistants such as LexisNexis Protégé represent the next frontier in personalized legal support. These assistants integrate seamlessly with existing systems like Microsoft 365 to streamline workflows, anticipate user intent and deliver tailored solutions securely.

Although most legal professionals are still wary of trusting AI-generated content (and with good reason), those who have embraced AI tools and put strong guardrails in place have other concerns to worry about.

Some early adopters are finding that success with AI in law can be a double-edged sword. The tasks that are usually the first to be automated – documenting and recording information, researching and obtaining information and analyzing data and information – traditionally account for a significant proportion of hourly billable work at most firms.

To be truly successful with AI, firms may consider providing more consultation and advisory services (much more difficult to automate) and even move some staff time to marketing and networking to bring in new clients. Efficiency gains won’t translate to real ROI unless this reduction in hourly billable work is accounted for.

The regulatory environment for AI in law and legal practice is evolving rapidly. While comprehensive federal legislation remains absent, state-level initiatives like the Colorado Artificial Intelligence Act (CAIA) set strict standards for high-risk AI systems. It’s important to keep abreast of what is working its way through the regulatory and governmental processes where you practice to be prepared.

Any law firm looking to implement AI should be familiar with Formal Opinion 512 from the American Bar Association’s Standing Committee on Ethics and Professional Responsibility.

The gradual integration of AI in the legal industry in the last year represents an incremental development in how some firms approach efficiency and workflow management. While AI tools offer capabilities in research automation and routine task processing, adoption patterns suggest measured evaluation rather than widespread transformation. Law firms continue to assess these technologies’ potential benefits while working within established ethical guidelines and emerging regulatory considerations. The evolution of the legal practice remains rooted in traditional principles, with technological adoption serving as a complementary rather than revolutionary force.