Tips on Responsible AI Use for the Modern Legal Practice

In a recent webinar hosted by LegalOn Technologies, in partnership with Priori and Out-House Attorneys, a fascinating and insightful discussion unfolded on the role of AI in transforming the legal profession for solo practitioners and boutique law firms. 

The webinar, titled "AI-Powered Growth for Law Firms and Solo Practitioners," brought together Lynden Renwick, Managing Partner at Out-House Attorneys, a law firm specializing in outside counsel services, David H. Drew, Vice President of Legal and Business Affairs at Priori, a leading legal marketplace, and LegalOn US CEO Daniel Lewis. 

Building Trust through AI: Ethics and Compliance at the Forefront

A key theme of the webinar was the importance of building trust with clients in the era of AI. Trust is the cornerstone of any attorney-client relationship, and AI, when used ethically and in compliance with legal standards, can significantly enhance this relationship. This trust is built by:

• Disclosure to clients and insurers: by informing both clients and malpractice insurers about the usage of any AI tools, obtaining their consent, and ensuring the safety of client data.
• Cost savings: which means that firms and attorneys are not charging their clients for time saved by using AI tools.
• Supervising AI tools: perhaps most importantly, by monitoring the output of AI tools, validating their responses, and ensuring that a human attorney makes the final call.

“If we’re going to be changing how we work [by adopting new technology], that’s absolutely something that we feel our clients should be aware of and provide consent for,” said Lynden Renwick.

Additionally, in order to successfully embrace technology and deliver superior client services, law practices must use AI solutions that adhere to rigorous ethical and data protection standards. These tools must treat client data securely and ensure sensitive data is not used to  train generative AI models. This dedication to compliance and ethics is pivotal in forging enduring bonds with clients, and becoming a partner in their success.

AI as a Force Multiplier in Legal Practices

Another critical topic discussed was how AI acts as a force multiplier in legal practices. AI's ability to process vast amounts of data swiftly and accurately enables legal professionals to find and act on risk faster. This capability is particularly beneficial in contract review, a task that is often time-consuming yet crucial. 

AI assists in cutting down contract review times, allowing lawyers to provide faster turnarounds – which helps clients close their deals faster. Deal velocity is critical in the business world, and one of the biggest factors that can kill a deal is delay. Many clients therefore place significant value on, and are willing to pay more for outside counsel that can provide fast contract review. 

"For small firms in particular, AI is a critical force multiplier," stated David. “It’s about cost reduction, but it's also about being able to do more with less, not about being able to do more with the amount you already have,” he continued.

The webinar also underscored how AI-powered tools, equipped with expert legal content created by seasoned attorneys, offer a critical advantage. These tools not only enhance the efficiency of routine contract reviews but also ensure a high level of accuracy and reliability. Perhaps most importantly, they make AI easy to use. Lawyers and legal professionals don’t have time to rigorously train untested AI models and bring them up to speed with their workflows. 

At the same time, many new legaltech tools are simply GPT-wrappers without sufficient testing and guardrails to ensure high quality outputs needed for legal workflows.

This is where purpose-built out-of-the-box AI contract review tools provide significant value. Lynden, who is a LegalOn customer and has advised legaltech startups with building their contract review tools, stated that one of the reasons he chose to purchase LegalOn was due to its diverse contract types that pair AI with attorney drafted guidance and content to help redline faster.

“LegalOn has out of the box models with a good variety of contracts, whether it's MSAs, SaaS agreements, DPAs, tenant leases, et cetera, and from both perspectives” – Lynden Renwick

By leveraging AI paired with expert legal content, lawyers can handle a larger volume of work without compromising on quality, thereby serving more clients and increasing their practice’s growth and profitability.

Embracing the AI Revolution in Legal Practices

Our webinar provided valuable insights into how AI is transforming the legal profession. You can watch the full recording here. By focusing on ethical and compliant use of AI, legal practices can build stronger trust with their clients. Additionally, as a force multiplier, AI empowers legal professionals to enhance their productivity and service quality. As the legal industry continues to evolve, embracing AI technologies will be crucial for firms looking to stay ahead in a competitive and ever-changing landscape.