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AI and Law: AI’s Strategic Impact on the Legal Sector

Looking forward, the legal profession must recalibrate its strategies to leverage AI technologies effectively.

In an era where technology profoundly reshapes industries, the legal field stands on the brink of a significant transformation, driven by the adoption of Artificial Intelligence (AI) where 70% of legal professionals predict that AI will profoundly transform or significantly impact their field. This shift allows lawyers to focus on more complex aspects of legal work where their expertise is crucial, improving both the quality of service and overall productivity without increasing billable hours.

AI’s impact on the legal sector is profound, as highlighted in an interview with AIM Research,  Smita Rajmohan, Senior Counsel at Autodesk, and corroborated by findings in the Thomson Reuters Market Insights and the “Future of Professionals Report”

Enhancing Efficiency and Expertise

AI technologies speed up large-scale data analysis and increase the precision of handling non-billable administrative tasks. Legal professionals identify two key ways AI enhances efficiency: by speeding up large-scale data analysis and by increasing the precision of non-billable administrative tasks. These improvements lead to quicker and more effective task completion, allowing lawyers to devote more time to billable work and potentially increase their income, even at lower rates.

Law Firms expectations from AI

1. Automation of Routine Tasks: AI can automate repetitive tasks, which is crucial as 75% of law firms prioritize productivity. This enables attorneys to concentrate on complex cases that demand their expertise, improving both productivity and the quality of service without increasing billable hours.

2. Enhanced Billing and Time Management: AI tools can improve time and billing management, addressing inefficiencies that are currently resulting in revenue loss. The use of AI to capture time more effectively can directly support law firms’ goal of maximizing billable work, aligning with the 75% emphasis on productivity.

3. Expertise and Client Service: By offloading routine work to AI, attorneys can focus more on areas where their expertise is irreplaceable. This meets client expectations for high-value expertise, as noted in findings from Thomson Reuters, and helps law firms maintain productivity and quality.

1. Risk Identification and Mitigation: With 71% of corporate legal departments emphasizing risk management, AI can provide advanced analytics tools to better identify and mitigate risks. This is particularly valuable for adhering to regulatory compliance and supporting company growth, which are priorities for 58% and 57% of departments, respectively.

2. Cost Efficiency: AI also offers potential savings on external spending, a priority for 39% of departments. By automating certain legal tasks internally, AI can reduce the need for external legal consulting, directly addressing the emphasis on managing legal work cost-effectively.

1. Regulation and Legislation Monitoring: Given that 68% of government legal departments prioritize keeping up with regulations, AI can be instrumental in monitoring legislative changes efficiently. This helps ensure compliance and supports the internal efficiency goals emphasized by 64% of these departments.

2. Administrative Simplification: AI can streamline administrative tasks and improve service delivery, aligning with the 64% focus on internal efficiency. This enables government legal departments to operate more effectively, delivering better services to internal clients while managing regulatory demands.

Navigating Ethical and Regulatory Frameworks

As AI reshapes the legal landscape, maintaining a balanced approach that respects ethical standards and data governance is crucial. Rajmohan points out that the core essence of lawyering remains consistent despite technological advancements: identifying issues, addressing them with existing laws, and contemplating potential legal ramifications, even in the absence of specific legislation.

Preparing for the Future

“The involvement of lawyers, ethicists, sociologists, and political scientists in this process is crucial to prevent biased and harmful outcomes,” Rajmohan states. This interdisciplinary approach ensures that AI development aligns with societal values and ethical standards, preventing potential misuse and fostering trust between clients and legal advisors.

Looking forward, the legal profession must recalibrate its strategies to leverage AI technologies effectively. Rajmohan suggests that as AI continues to evolve, lawyers will increasingly become specialists in fields such as privacy and AI law, further emphasizing the importance of robust data governance and ethical considerations.

The strategic integration of AI aligns with existing priorities of productivity, risk management, and efficiency, setting a framework for future growth and adaptation in an increasingly digital world. This evolution in legal practices asks critical questions about compliance with current regulations and anticipation of future legal standards, thereby safeguarding the ethical integrity and societal values at the core of the profession.

By integrating AI responsibly and strategically, law firms and legal departments can remain indispensable partners to their clients, navigating the complexities of a digital age with foresight and integrity. Through the insights of seasoned professionals like Smita Rajmohan and industry reports, the legal sector can envision a future where AI not only enhances operational capabilities but also upholds the fundamental principles of justice and equity.

Picture of Anshika Mathews
Anshika Mathews
Anshika is an Associate Research Analyst working for the AIM Leaders Council. She holds a keen interest in technology and related policy-making and its impact on society. She can be reached at
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