The impact of AI
CRL examines the impact of AI on the legal sector and the implications for regulation
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The integration of artificial intelligence (AI) technology into the legal profession presents both opportunities and risks. To harness the benefits of AI, legal professionals must be ready to navigate this evolving landscape while mitigating those risks.
CRL has been paying close attention to the development of AI and in particular the implications for regulation.
The CRL board recently took time during its strategy discussions to consider and address this. Here we explore the positive impacts and potential challenges that AI will bring.
Positive impact
There are a number of benefits to the use of AI, namely:
Efficiency enhancement:
- AI can automate routine tasks, such as document review, contract analysis and legal research, allowing lawyers to focus on more complex matters; and
- Legal professionals can save time and resources by leveraging AI-powered tools for repetitive tasks.
Research and case preparation:
- AI algorithms can sift through vast amounts of legal data, identify relevant precedents and assist in building stronger cases; and
- Legal research becomes more efficient, leading to better-informed decisions.
Cost reduction:
- By automating certain processes, law firms can reduce operational costs; and
- AI-driven tools can streamline administrative tasks, freeing up human resources for higher-value work. This could present expansion opportunities for small businesses by increasing work capacity.
Challenges and concerns
There are also challenges associated with AI, most notably:
Changing employment:
- Adoption of AI is likely to have a significant impact on employment within the sector and mean the displacement of support roles; and
- Lawyers must adapt to changing roles and acquire new skills to remain competitive.
Ethical issues:
- Instances of biased data and AI-generated errors (so called ‘hallucinations’) raise ethical concerns; and
- Transparency and accountability are crucial when using AI in legal contexts.
Professional adaptation:
- Lawyers need to understand the limitations of AI tools and integrate them effectively into their practice; and
- Balancing human judgment with AI assistance is essential. This reinforces the need for lawyer validation of AI outputs.
How is the legal sector currently using AI?
There is a high adoption rate in the legal sector with approximately 50% of lawyers in England and Wales already using AI. Existing legal software providers, such as LexisNexis and Microsoft’s 365 Solution for Legal, offer AI-powered features for legal research and document generation.
Generative AI, which creates text and other content, is gaining prominence. Tools such as LexisNexis AI+ and Microsoft’s Copilot leverage generative AI to enhance legal workflows. The recently launched LexisNexis product is being marketed as being able to greatly increase the ability to automate decision making, analysis and research.
CRL’s approach
As a regulator, CRL’s approach to this emerging technology will be as follows.
- Collaboration with other regulators within and outside the sector to co-ordinate a joint regulatory response to AI. In the short term at least, it is anticipated that regulation will continue very much in the same way as at present, with firms and lawyers using AI as a tool and taking responsibility for decisions being made and actions taken (validation). As such, the lawyer will remain the person making the decision and be subject to regulation, either individually and/or as part of a firm. The level of regulation needs to be proportionate, in that it balances enabling use of the new technology rather than stifling its development;
- Informing the CILEX community about the issues and implications surrounding AI. This will be a major determinant of the future. Please look out for new updates and guidance on the CILEx Regulation website.
- To consider how use of AI by students may be impacting on the education assessment process towards qualification. This will include looking at appropriate control measures that can be in put in place to maintain efficacy;
- Reviewing our standards, codes and guidance governing the use and application of AI. Consideration needs to be given to training needs for employees both within firms and at CRL; and
- Considering how AI can be used effectively by CRL itself. Can we use AI to improve the effectiveness and efficiency of our own regulation and business operation?
In addition, CRL recognises the potential that harnessing the power of AI has to improve access to legal advice for the general public, thereby empowering the public and addressing the paucity of online legal information and advice available.
“The impact of AI on the legal sector is multifaceted. While it presents opportunities for efficiency and innovation, careful consideration of ethical, professional, and societal implications is essential”
There is also potential for streamlining the justice and court system, allowing more cases to be processed and determined online and no longer be paper driven.
AI could improve access to justice for all citizens. It is hoped that, by driving more efficient working methods, AI can be part of the equation that enables lawyers to deliver legal services at a price consumers will be willing to pay.
The impact of AI on the legal sector is multifaceted. While it presents opportunities for efficiency and innovation, careful consideration of ethical, professional, and societal implications is essential. Legal professionals must navigate this evolving landscape to harness AI’s benefits while mitigating its risks and regulators must continue to issue guidance and review regulation as the technology evolves.
Approximately 60% of the text content of this article was produced using AI technology (and verified by CRL).