Catherine Dawson is general counsel of AffiniPay. The company’s software integrates practice management with professional services payment processing. Opinions are those of the author.
As AI technology transforms industries, its impact on the legal sector is becoming increasingly visible. AI has the potential to streamline processes, improve decision-making and drive innovation.
Catherine Dawson
Courtesy of AffiniPay
According to Thomson Reuters’ Generative AI in Professional Services Report 202488% of corporate legal departments believe GenAI could be applied to their work. Gartner predicts that by 2026, 25% of first draft contracts in legal services will be generated by AI.
Although AI has benefits, it also poses risks. As technology becomes increasingly integrated into legal operations, the need for ethics and data privacy becomes crucial.
Ethics and data privacy
A 2023 investigation by Thomas Reuters found that 62% of lawyers have expressed concerns about AI regarding, among other things, accuracy, privacy and security. These concerns highlight the need for safeguards to be put in place as AI systems become more widely used.
Without ethical standards in place, poorly designed AI systems could lead to data breaches, privacy violations, or biased results. — all of which can harm customers and ultimately a company’s reputation. To avoid these consequences, legal teams must follow ethical guidelines to ensure their AI tools comply with legal standards.
Company data
Asked about the biggest fears of AI, Thomson Reuters Future of Professionals Report found that 15% of respondents were concerned about data security, 15% about loss of ethics, and 7% about loss of transparency. To mitigate these risks, legal teams must adopt protective measures and prioritize security at every step, such as encryption, anonymization and data storage.
Legal and ethical standards
Since AI technology is still new and its applications are numerous, the need for regulation is necessary. The Future of Professionals report also reveals that 93% of respondents recognize the need for regulation. However, only 25% of law firms surveyed supported government regulation. To ensure that their AI tools and practices comply with current regulations and ethical standards, it is essential to conduct regular audits and compliance checks of AI systems.
AI Adoption
To integrate AI into legal services, leaders must develop a data governance policy that outlines exactly how AI will be used and how best to protect sensitive information. More than half of the lawyers surveyed in the Future of Professionals report believe that regulation around AI should be at the industry level.
For best practices internally, proper employee training is crucial. Surprisingly, most professionals are in favor of it. About 90% of professionals expect mandatory basic AI training for all professionals within the next five years, according to the Future of Professionals report.
Finally, legal and IT teams should collaborate as early as possible to create a framework for responsible AI adoption, address potential challenges, and minimize risks as early as possible.
AI in law
AI offers enormous potential for legal teams. However, it must be integrated thoughtfully and responsibly. While prioritizing ethics and data privacy is essential today, corporate legal teams must continue to evolve their strategies as AI is likely to evolve rapidly.