What Benefits Artificial Intelligence Hold for Legal Tech Industry

Artificial Intelligence has the potential to transform the legal sector from the bottom. As this technology has already made considerable changes in other industries, law firms are now quickly moving to embrace this disruptive tech and leaning towards innovation. The sector recognizes the opportunity to enhance and advance customer services, drive productivity and adhere to the range of compliance checks that every law firms have to meet.

Unlike other industries, the legal sector has seen a recent resurgence. The pursuit of operational efficiency and cost-effectiveness results remain primary drivers of AI adoption across businesses. And the technology is particularly appealing in industries known for their paper-heavy processes. In this way, LegalTech (Legal Technology) applications are increasing at an unprecedented rate.

Considering industry reports, the global market of legal tech AI is predicted to reach from US$3,25 billion in 2018 to US$37.9 billion in 2026, growing at a CAGR of 36 percent throughout the projected timeframe.

LegalTech Influenced by AI

Currently, the legal sector is increasingly recognizing the potential of AI as it has in several industries. As per a recent Deloitte study, nearly100,000 legal roles will be automated by 2036, leaving legal professionals to focus on higher-value, client-facing tasks.

While complex AI solutions emerge rapidly, the technology continues to grasp imaginations across the legal community. Also, it has become a catalyst for change within the sector. Now, law firms have begun to tap into ever-expanding automation and scalability as the technology becomes more sophisticated.

Let’s have a look at some legal tech AI that can assist the industry.

Predict legal outcomes

One of the most advanced applications of legal tech AI is predicting legal outcomes that are much less explored but carries enormous potential. It is able to store and evaluate vast archives of legal data, giving valuable insights in real-time. This functionality can also assist in determining the opportunities of winning a case, and optimizing decision-making and resource allocation.

Review Documents and Perform Contract Management

As law firms spend a lot of time reviewing documents and contracts for their clients, it requires intense scrutiny to identify contractual risks and issues. However, leveraging AI tools can help streamline this process and flag them as particular to a case. And it performs this by collectively or independently analyzing contracts based on a pre-built AI model.

Collect Quality Data

Since quality data forms the backbone of any intelligent system, understanding how this data facilitates meaningful AI outputs is crucial. So, to determine the suitability of AI tools, legal service providers must first consider what data-driven process requires improvement. Most AI applications rely on an initial data collection process that accentuates the data value and how it will guide AI implementations.

Research and Due Diligence

AI software leverages machine learning algorithms to precisely and quickly review and assess documents germane for specific cases. It can then apply this learning algorithm to spot trends or other documents which have similar attributes that make them similarly relevant. For due diligence, the confirmation of facts and figures and analysis of legal precedents, AI assists to upsurge the speed at which this can be carried out and eliminate the possibilities of errors.