Quick Summary: This blog is a comprehensive guide to Generative AI in legal. In this blog, you can read the top benefits of Gen AI in legal, Gen AI and legal services market statistics, unique use cases of Generative AI in legal, and a lot more.
Gen AI or Generative AI in legal sector is bringing remarkable transformation by streamlining processes, automating repetitive and time-intensive tasks, enhancing accuracy, and enabling professionals to generate innovative ideas for case hearings, preparing documentation, and more. If you are curious to know more about the use of Generative AI in legal, its benefits, applications, and other crucial aspects, this blog is for you.
Without further ado, let’s get started!
Generative AI in Legal: A Brief Overview
Gen AI, a subset of artificial intelligence, is an emerging technology that is revolutionizing the legal domain by automating contract reviews, summarizing contracts, identifying potential risks and compliance issues, aiding in legal research, predicting case outcomes, and improving client communications. The technology utilizes NLP, machine learning, and big data to perform various legal tasks and enhance their efficiency and accuracy.
Gen AI-powered tools or applications that are built dedicatedly for the legal sector take texts, audio, and images as input to process and generate outcomes in the format requested by the user.
Generative AI in Legal: Market Statistics
To understand the vast potential of Generative AI for the legal sector, let’s take a look at these interesting statistics:
- The global market size for Generative AI in legal is projected to reach US $1342.54 million by 2034.
- The growth is expected to have a CAGR of 31.06% between 2024 and 2034.
- Asia Pacific region is forecasted to generate substantial revenue by implementing Generative AI in legal during this period.
- Another online report highlights that 77% of users believe that Gen AI-powered tools have the potential to enhance the efficiency of lawyers.
- The same report reveals that 63% of users think that this technology will bring a revolutionary change in the way law education is imparted and studied.
These stats are sheer evidence that the future of Gen AI in legal industry is quite promising.
5 Innovative Use Cases of Generative AI in Legal Sector
Now that you are familiar with Generative AI for the legal domain, it’s time to explore more to know how AI is used in the legal profession.
Use Case 01: Generative AI in Legal Research and Analysis
Generative AI technology is capable of scanning and processing large volumes of legal documents, case laws, and other information to identify relevant and required information. It can even summarize complex legal texts for better understanding and saving time. The information it extracts from the datasets can be used for strategic decision-making during the research.
Use Case 02: Generative AI for Contract Review and Drafting
Generative AI with its quick analysis capabilities can review contracts and identify major clauses, potential risks, and inconsistencies. It can also be used to produce initial drafts of standard legal documents, such as terms of the contract of sale, non-disclosure agreements, and more. Besides, the technology can even compare different versions of a single contract or legal document to figure out changes and raise concerns.
Use Case 03: Generative AI for Legal Document Automation
Generative AI can be used to automate the creation of basic legal documents, including briefs, demand letters, and more. It eliminates dependency on human resources while saving time and costs. Document redlining is another popular case of Generative AI being used in legal services. The technology can also be used to assemble complex legal documents by merging standardized templates.
Use Case 04: Generative AI for Due Diligence and Investigations
Generative AI can identify patterns and anomalies in due diligence investigations of legal documents. The technology can be used to verify information automatically collected from multiple sources. It ensures accuracy and reliability. Generative AI can also analyze legal findings and prepare summaries for better understanding.
Use Case 05: Generative AI for Client Communication
Chatbots built with the potential of Generative AI can be used for support purposes. Legal professionals and companies can use it to answer client queries and provide guidance on various legal services. They can even personalize client services and organize and manage a repository of legal data that can be securely accessed by professionals.
Top 5 Benefits of Generative AI in Legal
Generative AI in legal professionals renders immense benefits that enable companies to streamline workflows, boost efficiency and productivity, reduce dependency on human resources, bring accuracy in legal operations management and execution, and more. Let’s check out these benefits in detail:
#1 Improved Efficiency
Generative AI automates routine tasks that are highly dependent on human resources. From reviewing documents and analyzing contracts to conducting legal research, the technology can perform any task without minutes. It frees up legal professionals to focus on other strategic operations.
Besides, reducing dependency on human professionals, task automation also ensures faster turnaround times for processing legal data and generating initial drafts of documents. Gen AI also streamlines workflows and improves the overall efficiency of executing critical operations.
#2 Enhanced Accuracy
Tasks when performed by Generative AI minimize the chances of errors. The technology thoroughly analyzes vast amounts of legal data to extract critical insights like trends, risks, and patterns. It can even identify potential legal issues and predict a particular case’s outcomes. With this, legal professionals or lawyers can make proactive decisions.
#3 Reduced Costs
Minimizing the cost of running operations and labor costs are two major goals of almost every business. Implementing Generative AI in legal tech can help achieve this goal. As mentioned in the last point, the technology automates manual operations, which reduces labor costs. Besides, it also helps legal firms or companies to optimally allocate their resources, which results in better utilization of existing resources.
#4 Enhanced Client Service
Generative AI in legal support and other areas offers a faster response time for client inquiries and requests. It can help lawyers offer personalized advice while improving client communication by drafting clear and concise legal documents.
#5 Building Innovative Strategies
With the help of Generative AI, lawyers as well as legal companies can build innovative legal strategies backed by data-driven insights. They can identify new legal opportunities and even create ideas for arguments during the case hearings.
Also Read: Generative AI in Interior Design: Use Cases, Benefits, Future, and More
How to Implement Generative AI in Legal Services?
Implementing Gen AI in legal services requires an in-depth understanding of the app or solution development, legal industry’s pain points and areas of improvement, and hands-on expertise in large language models, natural language processing, artificial intelligence, and other technologies.
If you don’t have a technical background, this could be a challenging task for you. In that case, connect a reliable Generative AI development company with a proven background of creating basic to complex Generative AI-powered solutions or applications. The company should also have experience in integrating Generative AI into the client’s existing workflows or infrastructure.
It would be an advantage if the AI development company you choose has already built Generative AI-powered apps and solutions for the legal industry. Take a look at their portfolio or schedule a call to clear all your doubts and proceed further.
In case, you want to integrate Gen AI into legal tech on your own, follow these steps:
Step #1 Figure Out the Use Cases of Generative AI
The first step is to find out the areas where you want to implement Generative AI technology. You can use it for documentation reviewing, contract analysis, legal research, predictive analytics, drafting of legal documents, or client services. Choosing among these or any other legal applications of Gen AI is critical as the dataset for model training will be selected accordingly.
Step #2 Select an Appropriate Technology Stack
The next important step is to choose the most appropriate technology stack or set of tools that are designed mainly to build apps and solutions for the legal domain. Choose the right open-source AI models, from Llama, GPT-3, and others available, considering the flexibility and level of customization.
Step #3 Prepare Your Data
In order to allow any Generative AI-powered tool or app to perform specific tasks, it is crucial to train it on the right dataset. Therefore, collect, clean, and curate data to ensure it is relevant to the goal you want to achieve. Besides, annotate data to train your Gen AI model to automatically identify particular legal concepts and patterns. Make sure you choose data only from reliable and relevant sources.
Step #4 Train and Fine-Tune the Gen AI Model
In this step, train the AI models on the selected datasets, which may include but are not limited to legal documents, case laws, and legal contracts. Moreover, fine-tune the model to make it capable of performing specific tasks, such as summarizing a document, conducting research, analyzing legal contracts, and more.
Step #5 Integrate Gen AI into Legal Workflows
After successfully training and fine-tuning the AI models, integrate them into your current technical infrastructure (via APIs), i.e., the systems or solutions you are using for legal operations management or rendering legal services to clients. You can also create custom Gen AI-powered applications. Make sure your Gen AI model or app adheres to the industry standards and legal and ethical guidelines.
Step #6. Continuously Monitor and Improve
Keep monitoring your Generative AI models for performance and updates. Find areas of improvement and consider users’ feedback to make necessary changes as and when required to ensure the continued success of your Gen AI apps for legal industry.
Generative AI and Legal Services in 2025 and Beyond
After reading thoroughly about Generative AI and legal services, let’s take a look at the future of Gen AI in legal sector. Yes, we are talking about exploring how the technology will further transform the legal field and the way critical legal operations are performed.
In the upcoming year 2025 and beyond, we might witness a spike in the demand for Generative AI-powered solutions or applications for the legal domain. Apart from these, legal firms and individuals that are already using top-notch technology systems will increasingly adopt the Generative AI technology and integrate it into their existing infrastructure.
With the increasing adoption, Generative AI will completely transform the way legal operations are performed and legal services are rendered to people. The use of AI-powered legal assistants is also expected to take a leap in the upcoming years. Besides assistants, Generative AI may create new roles like Gen AI-powered ethics officers or legal consultants to offer personalized advice or guidance.
Lastly, the use of Generative AI in legal field would also contribute to making lawyers and companies strictly adhere to regulatory frameworks and compliances.
You may also want to read: Generative AI in HR (Human Resources): Everything You Need to Know About
Conclusion
With Generative AI increasingly becoming a crucial part of the legal sector, the way professionals and firms offer legal services or conduct research has been completely transformed. The technology automates routine and redundant tasks, enhances accuracy, improves client servicing, and facilitates data-backed decision-making.
Considering the huge benefits and use cases of Gen AI in legal, it is clear that the technology has a vast potential for this domain. If you are in this sector and want to leverage this technology for streamlining operations, improve services, or other purposes, connect with an experienced Gen AI development company or hire AI professionals that offer customized and scalable Generative AI development services.