AI could prove to be a goldmine for law firms looking to cut on cost. Credit: Ascannio.

Generative artificial intelligence (AI) is set to cause major disruption to the legal sector. UK based Genie AI CEO, Rafie Faruq, told Verdict that today’s large language models (LLMs) will be completely transformed in the next five years, making them more powerful and accurate.

According to Faruq, companies should look to embrace AI legal assistants as LLMs are already transforming the legal-tech market. “Datasets will exponentially increase in size, as well as computer power according to Moore’s Law. All these factors mean that AI will likely be able to do most legal work to a superhuman level,” said Faruq.

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Research analyst GlobalData estimates the global AI market will be worth $383.3bn in 2030, growing at a 21% compound annual growth rate between 2022 and 2030. The number of patent filings for AI-related technologies has been steadily increasing in recent years, with more than five times as many patents published in 2021 as in 2016, according to GlobalData.

AI will have major disruptive effects on a wide range of jobs and the legal profession is no exception. In fact, a study published in March 2023, indicates that “legal services” represented the industry most exposed to the new technology.

Researchers at Princeton University, the University of Pennsylvania and New York University, found that of those top jobs effected by AI development, those in the legal sector fell within the top ten with judges in 6th place and judicial law clerks in 10th place.

OpenAI’s ChatGPT-4 has even managed to pass the bar exam. Law professor at Illinois Tech’s Chicago-Kent College of Law, Daniel Martin Katz, tested the model and fount it could excel in complex legal reasoning.

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However, experts believe that the new technology will not replace those in the legal profession but simply enhance existing practices.

The New York Times spoke to Ben Allgrove a partner at law firm Baker McKenzie, who said that reading, analysing and summarising are fundamental legal skills. “At its best, the technology seems like a very smart paralegal, and it will improve,” he told the The New York Times.

According to Faruq, AI could represent a goldmine for law firms enabling them to rapidly speed up their legal workflows and reduce legal spend. “AI has the potential to synthesise huge masses of data about market standards, case law, legislation and general commercial and legal acumen that a single human may not. This can help your business get the best outcome in every legal deal,” Faruq said.