by Chris Garrod
I’m a lawyer.
I sometimes mention the words “digital transformation” to my colleagues and get a blank stare.
Living
in a connected IoT world, working in a digital, mobile manner using
cloud computing services, for instance, is all still very new to many in
the legal world. In some respects, we remain an old fashioned industry.
However, the use of automation and in particular, deep learning and
artificial intelligence are now starting to change the way lawyers are
working. Over time, the continued advancements in AI and robotics will
revolutionise the legal industry.
Should lawyers be worried? And, if yes, how so?
Artificial
intelligence is something we cannot ignore. But there are two areas
where AI often gets incorrectly blurred: the areas of automation and
actual AI itself.
Often,
when one says the words “artificial intelligence”, the immediate
reaction is to think of hardware in a factory which makes humans
redundant because the humans are no longer required. Robots or machines
will essentially steal jobs. To be fair, there is some truth to this,
particularly in the middle class manufacturing sector, where automation
and robotics may have an effect.
For
instance, simple chatbots are replacing humans in call centers. Uber
drivers will be replaced by autonomous cars. Industrial workers are
being replaced by machines and robots. And everything in your house will
be practically controlled by your cell phone or some other device. We
are in the midst of a “Fourth Industrial Revolution”. The Internet of
Things. Everything is connected, digitally.
But
in spite of this job loss, automation should actually boost wealth,
creating new jobs in the digital and service sectors. The replacement of
manual, laborious activities in our lives using automation will result
in greater efficiencies in the work place, leading us to work better.
AI
Automation
is very different from actual AI itself. AI goes one step further than
pure automation, which simply is a function of — as the name suggests —
doing things automatically. AI is about trying to mimic human intelligence.
AI
requires a lot more work than what is required in order to automate.
Automation is easy to predict, while AI, just like the human brain, can
be programmed in many different ways. That is why the use of AI will,
possibly in some sectors of many industries, still take many years to
accomplish.
AI
is, however, already being used in your everyday life and in many
subtle ways. Going to Amazon and seeing what you might be interested in
purchasing. Turning on Netflix and seeing it predict shows you might
want to watch. YouTube’s recommendations. Spotify’s Friday Release
Radar. Fraud alerts from banks, which then prevent your credit card from
working.
The level of deep learning
required by more intricate AI requires more than just new jobs in the
service sector — it requires humans to learn, to analyze, manage and
ultimately train the machines and robots which are attempting to perform
human roles. That is now leading to a whole new level of job positions
which requires training not just in universities, but starts in high
schools. Coding is now becoming as relevant to your child’s education as
English and Mathematics were years ago.
The Modern Legal World
So,
what does this future hold for the legal industry? Will clients in,
say, twenty years, be obtaining legal advice from robots? Chatbots? Or
sooner?
Will clients even need human lawyers? Will judges be making decisions based solely on AI?
Much
of the legaltech world boils down to two concepts: (a) matters which
require data input and export and (b) matters which require legal
knowledge and analysis.
Legal Data
Simple
matters: forming companies; simple paralegal type functions, such as
bundling documents; basic research and due diligence; issuing very
simple legal opinions; drafting things like wills and basic court
applications; and matters extending to the administrative functions
within law firms, such as performing KYC on new clients and HR
functions. Many of these processes are form filling exercises. Any
process which is largely basic and can be conducted in volume based on
precedent, will eventually be more or less automated, with the correct
programming over time.
Will
this lead to fewer lawyers? It will certainly lead to greater
efficiencies in law firms — a lesser reliance on human administrative
functions (HR, KYC, paralegals, even perhaps more junior
associates/assistants). This is a combination of both automation and AI
at work. There are some examples of firms already using AI technology,
e.g. to weed out employee applications, as well as due diligence
platforms such as Luminance, which is being used for M&A transactions. And there are great examples of contract review automation such as LawGeex which are becoming increasing popular platforms for clients.
Blockchain
technology and in particular the use of self-executing smart contracts
will also gradually create disruption within the industry as lawyers are
needed less. The way data is generally kept using a decentralised
secure and easily accessible digital ledger will certainly have an
impact.
It
will certainly affect how firms invoice/bill their clients. When
contracts and legal opinions can be reviewed using a high level of AI
with little-to-no human input, the traditional model of billing clients
on a “time spent” basis is now practically obsolete. Lawyers should now
be adapting to AI technology, because if they do not, they will lose
clients to other firms which have adopted the technology faster.
At
the very least, firms should look at adapting legal technology to help
them review and assess their clients needs and to use that technology as
a new means of working in a collaborative fashion with clients. Allen
& Overy’s Fuse is already a good example of this kind of legaltech.
Legal Analysis and Robotics
So,
robots and the law. Can a judge be a robot? Can robots give more
complicated legal advice based on legal analysis? This isn’t automated —
it is something which requires very deep learning by the machine and AI
programmers behind it.
AI
will be very, very intelligent in the future, that is certain. And
there are examples of risk-assessment AI tools already being used in
some courts in the United States.
But technology can have its limitations.
For
example, there are matters where human intelligence may be required,
such as a complex court case where human creativity and judgment are
needed in order to obtain the correct result. Or an extremely
complicated legal opinion, where there are intricacies which really need
a human touch to achieve the correct result.
That
is not to say — in the very distant future — some of those limitations
cannot be overcome. But it is not possible to predict the future. There
is, however, one thing which AI will struggle to replicate… and that is empathy. Or at least, when we ever get to the point AI is able to replicate empathy, then I would expect that should be in the very, very distant future.
Digital
transformation and in particular, artificial intelligence is now
becoming something which is changing the way we live. Artificial
intelligence has been described by Steven Hawking as humanity’s last
invention and that it could even spell the end of mankind.
Even
if traditional lawyers don’t like it, the legal world is transforming
as a result of AI and deep learning. But bear in mind that AI is programmed
technology. And it is only as effective and useful as those humans
programming it. So it is absolutely vital to ensure those programmers
have the sufficient skills and experience to do so.
And I’m pretty convinced that fairly soon, those blank stares I often get will disappear.
Author’s note: this article was initially published in July 2017 and updated in February 2018.
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