For the legal sector generative AI is likely to be a game-changer, promising greater efficiency and accuracy for countless routine tasks.

Generative AI refers to self-learning algorithms that use existing data, such as text, audio, or images, to produce realistic new content.

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In 2023, it emerged as a potentially revolutionary AI technology, and GlobalData estimates that the global generative AI market will be worth $75.7bn by 2028.

There has been an uptake in the use of generative AI in the sector to develop virtual assistants that provide personalised client support. Using large language models, these virtual assistants can analyse legal information and summarise legal documents to provide tailored legal support and advice.

In November 2023, Westlaw, an online legal research service and proprietary database, launched a new generative AI-powered research solution for lawyers. It aims to generate quick and relevant answers to legal questions with concise summaries of cases and statutes.

In February 2023, Allen & Overy launched its generative AI platform, integrating Harvey (based on GPT-4 technology by OpenAI), into its global practice to help its lawyers draft legal documentation. Since then, other law firms have followed suit, rolling out their own generative AI chatbots.

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Lawyers have a clear consensus that generative AI can be applied to their work. In a 2023 Thomson Reuters survey, 82% of respondents from within the legal sector said that generative AI or ChatGPT could be applied to legal work. Increased efficiencies created by generative AI allow lawyers to focus on more analytical and sophisticated tasks. Ultimately, adopting the technology supports automating routine, unprofitable, and time-consuming tasks, leaving lawyers to focus on strategic legal analysis.

Concerns about the adoption of generative AI

However, there are risks that legal professionals must consider before adopting generative AI. There are pressing concerns about the accuracy, reliability, and security of the content produced by generative AI.

Hallucinations (AI-generated responses that contain false or misleading information but are presented as fact) are a crucial limitation to generative AI solutions, as the generated outputs often sound believable but are inaccurate. Reliance on fabricated information can have severe repercussions, particularly in the case of legal work. 

Additionally, to prove useful for lawyers, generative AI requires specific legally trained models that rely on large amounts of authoritative and up-to-date data.

Lawyers must be involved

Lawyers must be involved in creating generative AI products for use within the legal industry, as subject matter expertise is vital in this field. Businesses seeking to adopt generative AI will also need to allocate a specific budget for purchasing the necessary tools and addressing talent and skills gaps.

Despite these concerns, ultimately, law firms must invest in generative AI as those that do not will be at a competitive disadvantage.