International business law: EMBA-BS Y3 2023-24

Using AI for legal matters

3–4 minutes

Artificial intelligence (AI) has started to impact the field of law, presenting opportunities, risks and limitations. Understanding the input and the risks of AI for legal matters is crucial, as well as recognizing the boundaries where human expertise remains indispensable.

Input of AI for legal matters

Efficient legal research. AI tools have the capability to swiftly analyze vast volumes of legal data and extract relevant information, expediting legal research processes.

Predictive analytics. AI algorithms may be employed to predict case outcomes and help legal professionals make informed decisions based on statistical analysis.

Document review and analysis. AI may be used for document review, due diligence, and contract analysis, enhancing efficiency in these tasks.

Drafting legal documents. AI can be utilized to draft legal documents: it can generate precise and tailored content or assist in assembling contracts and other legal paperwork with increased efficiency. Additionally, AI systems can incorporate specific clauses and terms based on individualized requirements, streamlining the drafting process and minimizing errors.

Risks and limitations of AI in legal matters

Errors and omissions. In reality, it is necessary to have a good mastery of the complex technical subjects on which AI is asked to work. Upstream, you need to have good legal skills to ask a detailed and relevant question. Downstream, you must be able to detect errors and approximations and correct them. So, especially for complex issues, AI should be used as an assistant working under the guidance of an expert. Conversely, it would be risky to rely on AI on subjects that you do not master. For example, relying on AI to determine how to proceed to terminate a contract or end an established business relationship can be very dangerous, as AI will not necessarily know the particular context (nature of the contract, particular clauses…), nor the specific applicable regulations (especially when interpreted by case law ). Now, in some cases, the termination of the contract may result in the payment of very substantial compensation.

Legal expertise. While AI can handle routine tasks, it cannot replace the nuanced legal expertise, judgment, and strategic thinking of experienced legal professionals. It’s essential that legal professionals oversee the final output of AI, ensuring that the documents adhere to legal standards and reflect the nuanced expertise of the field.

Intellectual property rights. Utilizing AI for legal matters requires careful consideration of issues related to intellectual property rights. On the one hand, AI is likely to cannibalize the user’s intellectual property (for example, AI can “learn” from your data, if you ask it to review a contract or a programming language). On the other hand, it is necessary to ensure that AI does not infringe any intellectual property rights of a third party, in order to ensure that you yourself do not violate these rights. Finally, we must question the ownership and protection of works generated by AI.

Confidentiality and privacy. AI tools must adhere to strict guidelines regarding confidentiality and data privacy, especially when dealing with sensitive legal information. For example, asking AI to review a confidentiality agreement could lead to a breach of your confidentiality obligations. Another exemple: asking AI to analyze personal data could lead you to breach your obligations regarding the processing of personal data.

By grasping the contributions of AI in legal matters, as well as its risks and limitations, professionals can prepare for a future in which AI and human expertise work in tandem to deliver comprehensive and effective legal services. In all circumstances, we must remember Hegel’s mastery-servitude dialectic and say to ourselves that AI must remain in its place, which is that of an executor, and not let AI become the master.

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