10 Ways Law Firms Can Use AI

It’s clear that the future of everything will be digital and this includes law firms. It is very important for law firms to adapt to these new technologies in order to succeed. The digital transformation of the legal sector is slow but steady, which gives lawyers some time to get used to their new AI systems.

The legal industry has been slow to adapt to new technology, with only 29% of lawyers writing about their use of artificial intelligence in 2018 compared to 47% the year before. However, as more firms begin exploring AI applications, they are starting to realize its potential as an innovative tool that can streamline processes and improve business development.

We decided to dive deeper into these applications of AI within the field of law so you can learn how your firm can make use of them too!

Top 10 ways law firms use AI

Although AI will not fully replace lawyers, it will most definitely make their job a lot easier as it automates boring tasks like data analysis and research.

Here are 10 ways in which law firms can use AI:

1. Augmenting Research and Contract Review

AI can be used to help review contracts. For example, AI can help with due diligence and legal research, as well as contract negotiation and enforcement. There are many ways that the technology could be employed in these areas, including the following:

• Contract analysis: Lawyers will be able to use AI tools to analyze large numbers of contracts quickly for efficiency.
• Reviewing research: Lawyers will also have access to automated systems that can scan through vast amounts of data quickly and efficiently on their behalf — saving time that would otherwise be spent on manual searches through databases or other sources.

2. Drafting Legal Documents with AI

AI has the potential to automate much of the drafting process, including:

• Identifying and utilizing relevant information from past contracts.
• Drafting new agreements by extracting templates from existing documents.

AI can be used to draft contracts in a more efficient and accurate way than humans. It can also help firms save time by cutting down on time-consuming tasks such as reviewing other lawyers’ work, proofreading drafts, and ensuring that all the appropriate parties have received their copies of an agreement.

3. Due Diligence

Due diligence is a must when it comes to M&A and other deal-related projects. You need to ensure that you know what you’re buying and that there are no hidden surprises after the sale. This can be difficult for law firms because it requires a lot of manpower from both in-house counsel and external lawyers. However, AI can help with this problem by automating some tasks related to due diligence analysis such as searching through documents for specific keywords or phrases (e.g., “lawsuit”) or extracting information from PDFs into spreadsheets where it’s easier for humans to work with at scale (e.g., invoice numbers).

4. Data Analysis

AI can be used to analyze large amounts of data.

Predictive Analytics: If you’re a law firm looking for ways to improve your bottom line, predictive analytics will help you make better decisions regarding client retention, pricing and staff allocation.

Data Visualization: When we talk about “data visualization,” we’re referring to tools that make complex information easier for humans to understand by presenting it visually rather than in numbers or text alone (which is why graphics like bar charts are so popular).

5. AI to Predict Future Outcomes

AI can be used to predict the outcome of a case. This is a no-brainer, right? Lawyers do this all day long, but you don’t need to be a lawyer to use AI for this purpose. The same predictive analytics tools that lawyers use can be used by anybody to help them determine what their next steps should be.

6. Automate Case Procedures with AI

AI-powered chatbots in a law firm can help clients submit documents and pay bills. Another great way AI can help is when clients call your office regularly with similar questions about their cases or needs for services. Why not build a virtual assistant who uses machine learning and natural language processing to answer those questions accurately each time a client calls.

Law firms can also use artificial intelligence systems like Lex Machina to access precedent data from courts across the country and compile briefs without human intervention

7. Automation of Basic Tasks

AI can also be used to automate mundane tasks, like answering emails or scheduling meetings. If you are lucky enough to work in a law firm that already has some of this technology integrated into your workflow, then you may already know how useful it can be!

If your law firm does not have these tools yet — or if you want them implemented faster than what the IT department is currently able to offer — it might be worth considering AI as an alternative solution. It could save you lots of time and money while still providing great results for clients.

8. Smart Applications to Nurture Further Innovation

AI makes everything more efficient by automating complex workflows or processes. The use of algorithms and machine learning allows lawyers to deal with large amounts of data quickly, improving efficiency across their entire practice. They can be more innovative by experimenting with new ideas for clients, partners and employees. AI allows them to test out different solutions in a short time frame before making major investments in any one particular direction.

9. Automating Intellectual Property

Intellectual property (IP) is a major component of any law firm’s practice, and it’s also one of the most expensive. AI can help you manage and mitigate your IP assets more efficiently, saving you time and money.

AI can help with all aspects of IP management:

• Monitoring new developments in technology, industry trends, and legal developments related to your work
• Identifying potential issues with patents or trademarks before they arise
• Researching cases that might impact your case or help inform its outcome

10. Digitalizing Payment Processes

Invest in automation. The most obvious way is to invest in automation. Rather than having clients send checks or write out their credit card information by hand, they can accomplish this task online and receive a digital copy of their invoice instantly. This will help speed up the whole payment process, as well as make it more secure for both parties involved.

Conclusion

AI is here to stay, and the sooner legal professionals accept that, the better. The reality is that there are a wealth of benefits for law firms willing to embrace this new technology and put it to work. They can avail themselves of AI-powered apps that automate tasks, research, document drafting, data analysis and even client relations. While these systems might not be perfect just yet (no technology ever is), they’re improving all the time. And in any case, they’ll do a far better job than human beings will at repetitive tasks that take up an inordinate amount of your employees’ time. Humans will always have judgment calls to make — AI will help them do so with more confidence.