Artificial Intelligence Begins Infiltrating Legal Offices
The regulatory landscape of India is undergoing a seismic change, with prestigious legal firms like Trilegal paving the way. But it's not just them. Established players such as Shardul Amarchand Mangaldas and Khaitan & Co are leaving their tech-averse past behind, hopping on the AI bandwagon.
Partnerships and Technological Advancements
In a leap forward, Shardul Amarchand Mangaldas has formed an alliance with Harvey, a leading AI platform geared toward legal professionals, becoming the first Indian law firm to utilize Harvey's full suite of AI tools across all its offices. The move aims to speed up contract drafting, due diligence, legal research, and predictive analysis while safeguarding client confidentiality and data security.
Khaitan & Co, on the other hand, has launched its homegrown AI platform - KAI (Khaitan's AI). Designed around real-world, high-impact use cases, KAI integrates seamlessly into daily legal workflows, providing a secure, firm-specific, multi-functional solution.
AI Adoption Across the Legal Industry
The arena of AI in legal matters has gone from tentative curiosity to serious investment. Rohit Shukla, Digital Chief Officer at Khaitan & Co, points out that there's a clear trend of law firms turning to AI to optimize their internal capabilities. This shift began when firms like Khaitan & Co started shaping their internal data ecosystems to harness the potential of AI responsibly.
The Growing Importance of AI
AI is revolutionizing legal services, particularly in areas like workflow automation and information retrieval. Hemant Batra, Lead and Senior Legal Consultant at SAM, notes that while AI is increasingly used across large and small firms, there's still room for growth, especially in complex legal tasks.
A New Financial Landscape
Revenues associated with predictive coding could decrease by over $3-5 billion for law firms and lawyers globally in the next two years due to AI efficiencies. The more accessible AI-powered tools become, the more potential they have to save billions of dollars for individuals who previously couldn't or chose not to afford traditional legal services.
Staying Competitive in the AI Age
AI is altering the face of the legal industry. Firms must identify and assess its impact to remain competitive. As AI takes over tasks typically managed by lawyers, billable hours could decrease, affecting fees. In some cases, clients may opt for a hybrid approach, utilizing AI for specific tasks while seeking lawyer review for others. This could lead to lower fees and increased efficiency in legal services.
The Advantage of Smaller Firms
Smaller or regional law firms may be hesitant to adopt AI due to costs or lack of technical expertise. However, firms like Lex Consult - a multi-practice boutique law firm - argue that boutique players benefit from incorporating automation into workflow, delivering faster and more contextual legal services. This gives boutique firms a competitive edge, with the advantages trickling down to clients in terms of turnaround time and pricing.
The Future of AI and Law
AI is poised to level the playing field against legacy models, allowing premium, new-age firms to deliver sharper, more responsive legal counsel. AI in legal services is set to evolve rapidly, allowing lawyers to focus on their craft and reshaping the legal industry in the years to come.
Sources: [1] The Indian Express [2] Forbes India [3] The Economic Times [4] Vahura [5] The Hindu BusinessLine
- With the integration of AI platforms like Harvey and KAI, traditional Indian law firms are making significant strides in finance and technology, transforming their business models and investing in Defense Finance (Defi) to optimize internal capabilities.
- The adoption of artificial intelligence in the legal sector is no longer a novelty, but a serious endeavor, as law firms strive to stayed informed and competitive in the face of advancements in education and self-development.
- As AI efficiencies become more accessible, they could potentially disrupt traditional legal finance markets, saving billions of dollars for individuals who previously couldn't afford such services.
- The growing use of AI in workflow automation and information retrieval is not only revolutionizing the legal industry, but also leveling the playing field for boutique firms, providing them a competitive edge in the market, thereby benefiting clients through improved turnaround time and pricing.
