Legal AI tools can help law firms in predicting litigation, onboarding clients, and performing due diligence.
Artificial intelligence (AI) has become a crucial part of our everyday lives as well as businesses. Businesses that specialize in developing AI applications continuously build advanced use cases capable of disrupting various industries. AI is being extensively used in medicine, e-commerce, retail, FMCG, construction, and other sectors. Now, AI applications are making their way into law firms to assist lawyers as well as clients. Legal AI solutions are slowly transforming how law firm operations are handled.
Legal AI solutions can automate various routine tasks and help law firms in onboarding new clients. Lawyers can utilize the time saved on routine tasks on important cases that need human attention. AI applications can analyze large quantities of data, which can be used to simplify several tasks in law firms, including analysis of past cases. AI will streamline multiple operations in law firms, leading to increased productivity.
Examples of Legal AI Solutions
The following legal AI applications can improve law firms’ operations:
1. Due Diligence
The due diligence process is one of the most crucial tasks performed by lawyers. As part of the process, lawyers confirm facts and figures and access legal situations precisely. Due diligence helps law firms advise clients about their legal options and inform them about the actions they can take. Since the due diligence process requires pinpoint accuracy, it could be tedious and time-consuming.
AI applications can automate the due diligence process and execute it much faster than humans. For example, JPMorgan uses an AI-powered in-house legal tool called COIN, which extracts 150 attributes from over 12,000 commercial credit agreements and contracts in a matter of seconds. The company claims that this is worth 36,000 hours of legal work done by its loan officers and lawyers. Law firms can develop similar applications to speed up the due diligence process and eliminate errors.
2. Prediction of Litigation
AI developers are building machine learning models that predict the outcomes of pending cases. Although such tools are in the early stages of development, they are already showing promising results. Blue J Legal is working on an AI-based legal prediction engine that specializes in tax law. The company claims that its AI tool can predict outcomes of pending cases with an average of 90% accuracy. Legal AI tools like these will revolutionize the way law firms approach cases. Law firms will begin using such applications to plan litigation strategies, quickly approach settlement negotiations, and reduce the number of cases that go to trial.
3. Client Onboarding
E-commerce platforms like Amazon use AI-based chatbots to address customer queries and complaints. Similar solutions can be implemented by law firms to address clients. Law firms can deploy AI-powered chatbots to offer preliminary legal advice to people and help in getting them on board. Chatbots can also act as a buffer between law firms and potential clients to gather necessary information before human interaction is requested. These bots will direct clients to a lawyer if their case needs expert advice.
Legal AI tools are expected to be adopted extensively by law firms due to increased efficiency in business operations. Early adopters will have the upper hand over their competitors, and they will be able to test new AI applications that are in the early stages of development. As developers work on making AI even more advanced, future applications of AI will make routine tasks in law firms even quicker and error-free.
