AI in the law: the benefits, risks and human oversight

AI in the law: the benefits, risks and human oversight
The rapid adoption of artificial intelligence (AI) in the legal sector has ushered in a new era of efficiency and innovation. However, as with any transformative technology, there are inherent risks that must be carefully navigated. This blog explores the potential risks associated with AI in the legal profession, while also highlighting the significant benefits and strategies for mitigating risks through human oversight and responsible implementation.

 

Mitigating the risks of AI

While AI offers numerous advantages, it is crucial to address the potential risks and concerns that accompany its use in the legal field. One of the primary concerns is the risk of inaccurate or fabricated information, also known as "hallucinations." As the survey revealed, three-quarters (76%) of UK legal professionals are concerned about this issue when using public-access generative AI platforms.

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"The most important element of our approach, however, is the 'lawyer in the loop' principle and human centered legal AI," says Gerrit Beckhaus, Partner and Co-head of the Freshfields Lab at Freshfields Bruckhaus Deringer.

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Dr. Katy Peters, Law Lecturer and Programme Lead for LLM in Professional Legal Practice from the University of Surrey, emphasises the importance of human oversight:

"Whilst it may no longer be necessary to spend hours in a library or searching an online database, it will still be necessary to create appropriate prompts, review responses, adapt templates and challenge discrepancies."

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To address these concerns, the survey found that three-quarters (72%) of lawyers would feel more confident using a generative AI tool grounded in legal content sources with linked citations to verifiable authorities, up from 65% in January 2024.

Other risks, such as over-reliance on AI (a concern for 50% of lawyers), leaking confidential information (49%), and accidental bias (43%), are also valid concerns that must be addressed. Tom Whittaker, a Director and Solicitor Advocate at Burges Salmon, highlights the importance of information security requirements, AI use policies, vendor due diligence, and other steps to mitigate the risk of confidentiality breaches.

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Harnessing the benefits of AI

Despite the risks, the benefits of AI in the legal sector are undeniable. As the survey found, a staggering 71% of lawyers cited delivering work faster as a key benefit of AI, followed by improved client service (54%) and a competitive advantage (53%).

Gerrit Beckhaus from Freshfields emphasizes that generative AI can unlock new data-driven services that deliver greater value to clients by identifying key data points, patterns, and insights at an unmatched speed and scale.

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May Winfield, Global Director of Commercial, Legal and Digital Risks at Buro Happold, highlights the time-saving abilities of AI: "AI enables my commercial and legal team to have more time in what is really of value – the analysis of issues and risks, deciding on solutions and mitigation, and commercially-minded support."

Bivek Sharma, Chief Technology Officer & Head of Alliances for Tax, Legal and People at PwC, emphasizes the transformative impact of AI on productivity, efficiency, and service delivery: "For my team, generative AI tech is a game-changer that enhances our productivity, efficiency and quality of service delivery. It allows us to automate and streamline complex and repetitive tasks, focus on higher-value and creative work, and collaborate more effectively with our colleagues and clients."


Striking the right balance with human oversight

While the benefits of AI are compelling, it is crucial to strike a balance between leveraging its potential and maintaining human oversight, ethical standards, and professional integrity. As the legal profession continues to embrace AI technology, it is essential to implement robust governance frameworks, provide comprehensive training, and foster a culture of responsible AI adoption.

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By leveraging AI's capabilities while maintaining human oversight and adhering to ethical principles, the legal profession can navigate the challenges of the modern landscape and deliver exceptional value to clients while mitigating potential risks.


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About the author:
Dylan covers the latest trends impacting the practice of the law. Follow him for interviews with leading firms, tips to refine your talent strategy, or anything technology and innovation.