Across all industries, Generative AI (GenAI) is making waves, driving rapid and widespread transformation. From revolutionising creative industries to reshaping customer service, GenAI's ability to generate content, support decision-making, and optimize workflows is being embraced globally.
The legal industry is no different, with law firms increasingly recognising the potential of GenAI to improve internal efficiency, streamline processes, and offer innovative solutions to clients and employees. Given the speed and scale at which AI is evolving, legal professionals must understand its implications and make informed decisions about its adoption. However, the path forward involves navigating challenges unique to the legal sector.
AI in the legal sector
Long before GenAI became a hot topic, machine learning algorithms, a form of traditional AI, were being used in the legal sector to improve processes including document review, e-discovery, and contract analysis. Tools such as Kira Systems were identifying clauses in contracts, performing due diligence, and spotting patterns in large sets of structured data. Traditional AI has been highly effective in specific, narrow tasks including classifying information and automating document searches.
However, the introduction of GenAI is a game changer - it can be used to create new content and learn from unstructured data, expanding the possibilities for use cases far beyond automation.
One of the significant drivers for law firms adopting GenAI is the increasing demand from clients for expert knowledge on emerging technologies. Clients look to their legal advisors not just for traditional legal counsel but also for insights into how AI will impact regulatory, ethical, and business landscapes. This necessitates a deep, firm-wide understanding of AI, from how it works, to the risks and legal considerations it poses. As such, the training implications for law firms are substantial, unlike other industries where detailed knowledge of GenAI adoption might be limited to technical departments. This training needs to cover both internal efficiencies and client-facing advisory services, meaning law firms must foster a culture of learning and experimentation with GenAI throughout the company.
Law firms need to establish a solid governance model
One of the first steps for a law firm is to establish a solid governance model that includes GenAI principles, policies, and an operating framework. This foundation incorporates ethical considerations, data privacy, and transparency, and ensures that GenAI is used responsibly and consistently across the organization. Developing a governance model is not just about mitigating risks but also about ensuring GenAI technologies are deployed efficiently and effectively. Establishing these frameworks retrospectively, even if GenAI tools have already been introduced, can lead to greater consistency in how GenAI is used across departments, increasing efficiency and reducing risks associated with misuse or ethical violations.
Governance also ensures that GenAI use cases are aligned with the firm’s strategic objectives, and that any new uses identified are correctly assessed. Having a well-defined operating model allows firms to prioritize use cases, scale successful implementations, and share best practices internally.
In short, the rapid introduction of GenAI offers significant opportunities but also presents several risks for the legal industry where data security and confidentiality are paramount. Its potential to transform workflows and enhance decision-making is immense, but the speed of adoption raises concerns around efficiency, regulation, and alignment of use. To manage these challenges, law firms must establish solid governance models with clear principles and policies, ensuring GenAI is used responsibly and aligned with strategic goals. By building robust frameworks and investing in ongoing education, firms can harness the benefits of GenAI while mitigating risks, maintaining trust, and staying competitive.
If you would like to discuss GenAI use within your company and understand how we can help, please get in touch.
