Artificial Intelligence (AI) has permeated the ironclad bastion that is the legal industry. Legal once eschewed technology, with a particular distaste for AI. As it turns out, breakthroughs in technology have created legal tech and AI-powered tools that have stringent security measures, and can help legal departments streamline their legal processes! A far cry from AI of yore, today’s evolving AI drives legal tech, offering users capabilities beyond their wildest imagination.
5 Ways AI is Transforming Legal
With AI, legal tech tools and platforms are revolutionizing legal research and the way legal departments extract, collate, and utilize this research. A variety of legal tech use machine learning (ML) algorithms to analyze vast amounts of legal data. The applications for these ML algorithms in legal research cover those pertaining to statutes, case law, and legal precedents. What’s interesting is that legal research that had to be painstakingly looked up and collected can now be collected quickly, and accurately – leaving no margin for error.
The world of contracts was disrupted when CLM broke onto the scene. AI-powered CLM streamline contracting processes such as contract reviews and analysis. A unique algorithm within CLM, known as Natural Language Processing (NLP), extracts and analyzes key information in contracts, monitors for potential risks to companies, and offers legal departments the ability to quickly compare contracts. With AI-powered CLM, legal departments can breeze through contract processes, without compromising on efficiency. In addition, legal departments can improve contract reviews, automate contract renewals, and oversee due diligence for their organizations. LegalEase Solutions are known for their level of expertise in providing contract analysis solutions.
Legal Prediction and Analytics
One of the most exciting aspects of AI is its ability to provide smart predictions. Although AI in legal tech can’t forecast the future, predictive analytics helps lawyers across the board.
Predictive legal analytics utilizes historical data and present legal departments with:
- plausible case outcomes
- likely indemnity payouts in litigation cases
- risk estimation
- informed decision-making data
Legal Chatbots and Virtual Assistants
A common question the legal industry faces is whether AI can replace lawyers. The answer is that although AI can be used as a paralegal assistant, or to manage legal tasks, it does not possess legal aptitude, human emotions to guide a case, nor the current knowledge needed. What they can offer in the meantime is the power to act as virtual assistants, and AI-powered chatbots. These applications are currently being used online and for the legal department and lawyers’ clients as a way to offer simple legal guidance, answer frequently asked legal questions, and assist with legal forms and processes. AI-powered chatbots and assistants are available 24/7, and can remove some of the rote tasks lawyers perform.
Compliance and Risk Management
Compliance and regulatory measures are always changing and legal departments need to be ahead of the game to mitigate the risks involved so their organizations do not suffer the repercussions. AI is the legal tech tool that never sleeps and has consistently been able to monitor the evolving compliance landscape. In this crucial, yet dynamic practice area, AI can monitor 24/7, analyze company data for potential risks and anomalies, and flag suspicious activity for escalation. Machine learning algorithms can identify suspicious activities. Companies can quickly mitigate legal risks and stay compliant with local or global compliance measures.
AI isn’t infallible, but it provides a wealth of benefits to legal departments. With AI-powered legal tech, legal departments have a highly-intelligent assistant that never sleeps, on its toes 24/7, with the ability to cut delivery times exponentially, while maintaining high standards of efficiency.