As the legal industry evolves, the integration of generative Artificial Intelligence (genAI) into legal technology presents both opportunities and challenges. In a recent report by Litera, it was found that 77 percent of respondents anticipate a significant investment in new technology, particularly AI-based solutions. For Chief Information Officers (CIOs), Chief Innovation Officers (CINOs) and IT professionals, selecting the right genAI is crucial to ensuring technological investments lead to meaningful improvements in efficiency, accuracy and overall service delivery.
Depending on the size of your firm, you may have different needs/asks of legal tech vendors:
- Small law firms: Smaller practices can leverage genAI to compete with larger firms by enhancing efficiency in tasks such as document review and contract analysis, all without the need for extensive IT infrastructure.
- Mid-size law firms: Mid-sized firms have integrated genAI to specialize in specific areas of law, such as intellectual property or environmental law, by using AI to analyze vast amounts of relevant regulations and case law efficiently.
- Large law firms: Large firms with international offices utilize genAI to manage multi-jurisdictional compliance issues, particularly in handling data privacy across various legal frameworks such as GDPR in Europe and CCPA in the U.S.
Regardless of the size of your firm, here are the top 10 questions law firms should ask their genAI legal tech vendors to make informed decisions:
1. How does your genAI ensure data privacy and compliance with legal standards and where is data stored?
Where a law firm’s data is stored is of great importance, given that law firms handle sensitive client information. Vendors must demonstrate robust data privacy measures, compliance with GDPR and CCPA and other relevant regulations, on how their systems secure data.
2. Can you provide examples of how your genAI has improved efficiency in other law firms?
Request case studies or testimonials showing tangible benefits, such as time saved on document review, increased accuracy in legal research or cost savings in operational processes.
3. What are the training and input requirements and user onboarding process for your genAI solution?
Successful implementation depends on how quickly and effectively the Large Language Model (LLM) can be trained and adapted to the firm's needs. Vendors should outline their training protocols, support services and resources available to facilitate this process. The LLM should be able to process requests accurately without requiring extensive input from users. Input requirements should be minimal and clearly defined.
4. How does your genAI handle and learn from unique legal scenarios and exceptions?
Legal work often involves unique cases that don’t fit standard templates. Vendors should explain how their AI adapts to new situations, learns from them and improves without compromising accuracy.
5. What are the integration capabilities of your genAI with existing legal software?
Seamless integration with the firm’s current technology stack is essential for maximizing the benefits of genAI. Ask about compatibility with popular legal software and any potential challenges in integrating their solution. Review the impact of the genAI solution’s integration into existing legal workflows, ensuring it will enhance efficiency without disrupting established practices.
6. How transparent and explainable are the AI’s decisions and recommendations?
Transparency in AI processes is critical for trust and reliability. Vendors should provide insights into how their AI makes decisions and ensure that these decisions are explainable to the firm’s lawyers and clients. Results should be of good quality and accurate. When a lawyer looks at case details from previous cases, it shouldn’t necessarily pull from cases lost.
7. What ongoing support and updates are included with your genAI solution?
Continuous improvement and support are vital for long-term success. Inquire about the frequency of updates, the nature of support services, and any additional costs associated with maintaining the AI.
8. Does the LLM reference where it got its information from?
Transparency and verifiability are crucial in legal work. When the AI provides sources for its information, lawyers can cross-check and validate the data, ensuring its accuracy and relevance to their cases. This capability enhances the AI's reliability, builds trust in its outputs and supports informed decision-making. Additionally, source referencing can help identify potential biases or outdated information, allowing the firm to maintain high standards of legal practice and due diligence.
9. What are the cost structures and ROI expectations for your genAI solution?
Understanding the financial implications is crucial. Vendors should provide a clear breakdown of costs, including licensing, implementation, training and maintenance. Additionally, they should offer insights into the expected return on investment (ROI) based on their experience with similar firms.
10. What about hallucinations/deepfakes and how are they reduced?
Hallucinations, where the AI generates incorrect or misleading information, can have serious consequences, including providing incorrect legal advice or misinterpreting laws and regulations. Understanding how the vendor addresses and mitigates these errors ensures that the AI solution will uphold the firm's high standards of precision and trustworthiness. Additionally, this knowledge allows the firm to gauge the robustness of the AI's performance and its suitability for critical legal tasks.
The integration of genAI into legal practices is a significant step towards modernizing and optimizing legal services. By asking these 10 questions, CIOs, CINOs, and IT professionals can ensure they choose a genAI vendor that not only meets their technical requirements but aligns with their strategic goals and values. The right partnership can drive innovation, enhance efficiency and ultimately deliver superior legal services in an increasingly competitive market.
Future Trends in AI
It’s also crucial that whichever solution you choose is future-proof. Below are some key trends in AI we expect to see in the future, and should also be considered when looking into vendors:
Specialization and Fine-Tuning of Small Language Models (SLMs):
SLMs are specialized AI models tailored for specific tasks and industries. In the context of law firms, SLMs can be fine-tuned to understand legal jargon, case law and specific legal processes. By focusing on a narrow domain, SLMs can provide more accurate and relevant outputs compared to larger, general-purpose models. Law firms can leverage SLMs to enhance document review, legal research, and contract analysis, ensuring that the AI tools are well-versed in the nuances of legal language and requirements.
Integration with Legal Operations in Law Firms:
GenAI will revolutionize legal operations within law firms by automating routine tasks, thus freeing up lawyers to focus on higher value activities. For example, genAI can streamline document drafting, e-discovery, and case management processes. By integrating genAI tools into their existing workflows, law firms can significantly boost their operational efficiency and reduce overhead costs. This trend is important as firms look to handle increasing workloads without proportionally increasing staff.
Ethical and Responsible Use with Chain of Thought Processes:
Ensuring ethical and responsible use of genAI in law firms requires implementing chain-of-thought reasoning in AI applications. This approach involves designing AI systems that can articulate the reasoning behind their decisions, making the AI's thought process transparent and understandable. Such transparency is crucial for maintaining trust and ensuring that AI recommendations are based on sound legal principles. By incorporating chain-of-thought processes, law firms can mitigate risks associated with AI-generated inaccuracies and biases, thereby upholding the integrity of their legal work.
Market Consolidation and Partnerships:
LegalTech incumbents are likely to pursue market consolidation through partnerships or acquisitions rather than building solutions organically. This trend will shape the competitive landscape by combining the strengths of different companies to offer more comprehensive and integrated genAI solutions. For law firms, this means they can expect more robust and feature-rich AI tools as vendors combine their resources and expertise. Market consolidation can also lead to standardization in AI solutions, making it easier for law firms to adopt and integrate these technologies into their workflows.
In conclusion, integrating genAI into legal practices offers immense potential for enhancing efficiency, accuracy, and overall service delivery. By posing these 10 critical questions to prospective genAI vendors, CIOs, CINOs, and IT professionals can make informed decisions that align with their firm’s strategic goals. Whether you are a small, mid-sized, or large firm, the right genAI solution can help you stay competitive and navigate the complexities of modern legal challenges. As the legal industry continues to evolve, ensuring your chosen technology is robust, compliant and future proof is crucial for sustaining growth and delivering superior client services.
Published November 15, 2024.
