The Utility of AI in Corporate Law

Artificial Intelligence (AI) has been integrated into most industries, and the legal industry is no exception. AI is a type of computer that is capable of performing tasks that require human intelligence. There are some experts in the field that express some distaste for AI for various reasons. Some simply think AI is a trend and others think that AI will take over their livelihood. Regardless, the adoption of AI in legal practices is picking up speed fast. And AI isn’t integrated into the legal systems to rob lawyers of their livelihood. In fact, with the assistance of AI lawyers can increase their productivity on focus on more complex issues rather than sinking time into menial or monotonous tasks.

AI is transforming how lawyers in legal departments work. Machine learning and NLP have already been heavily used for legal research and assists to predict litigation results. AI takes care of tasks like drafting lower-exposure or lower-liability agreements like NDAs (Non-Disclosure Agreement). AI also has predictive coding which uses samples of data to single out relevant documents in connection with eDiscovery requests. AI is mainly used to compile data, if used correctly predictive coding can save a lot of time as this data may contain clauses that have been administered.

Understanding AI In Corporate Law

There is a surge in popularity in different sectors to use AI to increase productivity. Corporate Law is no exception. Law firms and professional services companies are striving to make the best decisions in terms of AI for their businesses. There are many different ways AI is currently applied in the legal profession. AI’s current legal applications are discussed below:

-Assisting Lawyers to produce due diligence and research

-Using analytics to provide additional insights

-Automating creative processes in legal work

-Assisting with Contract Lifecycle Management

NLP and AI are revolutionizing the legal industry. Richard Susskind, one of the UK’s most elite experts at the intersection of legal and technology is a strong supporter of using AI. Susskind believes, “AI and other technologies are enabling machines to take on many of the tasks that many used to think required human lawyers and that’s not plateauing. It seems to be happening at quite a rate.”

AI and its Current Applications

AI assist in these categories to help legal experts increase productivity:

Due Diligence 

Legal due diligence is the process of collecting, understanding, and assessing all the legal risks associated with an M&A process. Litigators perform due diligence using AI tools to review the background information which includes contract review, legal research, and electronic discovery.

Prediction AI

This type of AI algorithm that can predict the outcomes of the litigation.

Using AI for Analytics 

AI compiles data points from past case law, win & loss rates, and then a lawyer may judge the history to be used for trends and patterns.

Document Automation

Many legal businesses use software templates to create filled-out documents based on data input provided.

Intellectual Property 

AI tools guide lawyers in analyzing large IP portfolios and bringing insights from the data.

Electronic Billing 

Lawyers’ billable hours are computed automatically.

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There are mixed opinions regarding AI, and the legal departments aren’t the only ones debating the impact of AI. Technology companies at the focal point of AI techniques are reassuring workers across different industries that AI is only implemented as a booster and augment employees’ capabilities, not as a replacement. IBM CEO, Ginni Rometty, and Microsoft CEO, Satya Nadella, spoke in the World Economic Forum panel on artificial intelligence in Davos, Switzerland. These technology experts claimed that AI can enhance human ingenuity and create even greater opportunities to improve workflow and give more time to employees to breathe.

Legal experts must balance the potential issues they must face: from cost and reliability to some lawyers hesitating to use AI. It is important to not lose sight of the end goal: to transform legal departments by using AI to reduce costs, develop business strategy, and minimize contract risks. More and more legal departments are adopting AI and NLP tools to get ahead of the competition. If you'd like to talk about how NLP labeling tools can help revolutionize your company, contact us. We'd be happy to talk!

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