Artificial Intelligence and the Legal Sector – A Comprehensive Introduction

Artificial intelligence is no longer a distant prospect in the legal sector — it is already reshaping practice. From contract review to litigation strategy, there are numerous aspects of AI integration awaiting exploration.

Advantages

To start simply, it's important we look at the fundamental advantages and disadvantages of AI integration into the legal sphere. On the positive end, it is a highly efficient and productive tool. Think about the hours spent on legal research, data analysis, or due diligence proceedings in litigation—what may take lawyers months will take AI minutes. Leading law firms such as Linklaters are taking advantage of this opportunity, recently announcing their firm-wide implementation of Legora AI.

Additionally, AI can aid in predictive analysis. A US study found that an AI algorithm can predict 69% of the US Supreme Court decisions correctly – this is an exceptional advancement with regard to formulating legal strategy or argument.

Finally, as we continue to work on the billable hours model, less man-hours mean affordable and quality legal services.

Disadvantages

With that in mind, I would argue that being aware of AI’s risks takes priority. The most obvious legal risk is client confidentiality. The International Bar Association has published an article discussing how client confidentiality is in jeopardy, as Generative AI will not be able to distinguish between privileged and non-privileged information in its data analysis.

Additionally, there are numerous concerns over accuracy, lack of transparency, and algorithmic biases. Essentially, this means that the system will inherit biases from the data it is fed and, through a process called amplification, it will hallucinate and consequently produce false information. There have also been numerous studies that outline the various risks AI poses to job displacement.

Mitigation and Legislation

From a holistic perspective, it can be called into question whether AI integration is worth all the risks that accompany it. Given that these risks can be mitigated, I would argue that it is. Think about AI Literacy. When legal professionals are guided by an expertise in the system and its use, they are better equipped to critically evaluate outputs and safeguard clients’ interests.

More importantly, however, is the burgeoning AI legislation. The recent EU AI Act serves to regulate the development, deployment, and use of AI models within its jurisdiction. On the other hand, while certain US States have implemented AI legislation, a federal law is yet to be decreed. Whereas the UK is said to propose the UK AI Bill in the Summer of 2026.

At the end of the day, this is a relatively new field, but it requires attention and conquering to stimulate competition and success.

Law Firms and their Clients

For those of you interested in a slight commercial detour, there is much to be expected from law firms at this time. First on the list is transparency; clients want to know when their external counsel is using AI. Clients will also expect the use of AI to reflect in their bills; increased efficiency should mean a smaller legal bill. A major concern, however, is compliance. Businesses are hesitant to invest in or implement AI until they can receive the appropriate guidance on regulatory compliance and strategically advantageous business decisions from their lawyers.

Moreover, many law firms are excited by this AI revolution. For instance, A&O Shearman’s innovative implementation of ‘Harvey’ has afforded the firm increased efficiency and ‘streamlined drafting’. Other law firms such as Latham & Watkins and Freshfields have also embraced AI, thus enhancing contract review and document generation. 

Student Refocus

This global AI movement is fast-paced, complex, and contentious. Yet, it presents a fundamental opportunity for us as students to enhance our employability and commercial awareness. Develop your knowledge of AI in the legal sector, how it is being used and who is using it. AI legislation and integration into the legal sphere are uncharted territory and are thus sparking spirited debate in the legal sector—become part of that conversation.