Since the turn of the 21st century, technology has had a significant impact on global industries. That includes the corporate world, healthcare, education, and the media industry. But you seldom hear about a tech revolution in the legal world. While the legal industry may have had a conservative approach to utilizing the latest technologies, it would be unfair to say that it is yet to overcome its traditional resistance to tech tools.
From corporate firms to courtrooms, modern technology is beginning to transform the legal industry in many ways, with Artificial Intelligence (AI) leading this revolution.
To get a better idea of how AI technology is used in law firms today, let us first understand the concept of Artificial Intelligence.
What is Artificial Intelligence?
Artificial Intelligence is the enhanced capabilities of a machine or software that can emulate the human mind. It is the simulation of human intelligence in computers and machines that solve problems and make decisions on their behalf. You should know that machine learning is a branch of AI used by digital systems to mimic human behavior.
Here are five ways that AI technology is simplifying operations in the law firm:
Contracts are the central component of any legal and professional dealings. When two parties are involved in a legal matter, paralegals from both sides have to prepare, curate, review and exchange multiple drafts of a contract. Manually drafting and reviewing legal contracts is a lengthy and time-consuming process prone to human errors.
That is where AI-driven software can help streamline the contract reviewing process, making it more efficient and accurate. Several up-and-coming startups have developed AI solutions that analyze and proofread legal contracts using natural language processing (NLP) technology.
According to estimates, automating the contract reviewing process can eliminate up to 90% of the total cost and reduce the procedural time by 80%. With an AI-powered partner for legal ops excellence, attorneys can create future contract strategies, draw conclusions, and discover new insights within particular contract terms. Not only does AI software provide attorneys with more confidence in negotiating contracts but leads to better outcomes for their clients.
The due diligence process involves attorneys uncovering background information about a case on behalf of their clients. It is one of the most core aspects of an attorney’s job where they must gather relevant data, legal documents, communications, and other crucial information.
That is vital to assess any risks and accurately advise clients about their options and actions to take. However, it is a tedious and time-consuming task.
AI-powered tools can accelerate the process by significantly cutting down the time in reviewing documents while boosting accuracy.
Softwares equipped with AI solutions can analyze legal documents accurately and efficiently. They can search massive databases of case laws and help legal experts sort between different case files more easily by flagging documents as relevant to a particular case.
Therefore, if a law firm has a legal document that pertains to a specific case, it can use AI to sort out similar documents from its legal directory. That eliminates the need for manually skipping through loads of paperwork which could take hours, saving a lot of precious time for attorneys.
Predicting Litigation Outcomes
Many law firms have started to adopt AI software that performs predictive analysis of legal outcomes for a particular case. Whether it’s a concern about taking the case to trial or making a settlement, AI can accurately predict outcomes by analyzing similar cases and trial data over the past years.
Accordingly, attorneys can confidently advise clients on how and if to proceed with litigation.
For a law firm, robust and accurate time tracking is crucial. Client relationships and profitability demand every second to be accountable. Modern law firms now utilize AI-powered time tracking software to track all billable legal hours.
That includes the time spent on official tasks such as preparing legal documents, talking to clients, closing deals, and other administrative responsibilities. Automated time tracking provides law firms with a transparent way to charge their clients for said services.
Billing and Accounts
Accounting is one of the key aspects of any business, and law firms are no exception. In recent years, electronic billing platforms have become increasingly popular due to their efficiency and effectiveness. AI-powered billing software automates tasks like the payment and management of invoices, payment of employee salaries, and bookkeeping, etc.
Online AI tools can create customized legal documents – from affidavits to trust deeds and much more. That helps save up to 70% of the time that would otherwise be wasted on manually drafting official documents while preventing errors.
While the legal industry may not be amongst the early adopters of AI technology, the technology is gradually starting to gain momentum and transform the legal landscape.
By embracing innovation and letting computers handle the monotonous details, attorneys can free up and devote more time to higher-level tasks like strategic problem solving, counseling their clients, and mentoring their subordinates.