written by Sam Sheth, CIO at Strategic Technology Solutions

When a new technology hits the market, it tends to cause a big buzz. In the last decade, one of the most disruptive and newsworthy technologies to emerge has been AI. This technology has cropped up everywhere from search engines and social media to shopping apps and customer service platforms—even the cars we drive, the movies we watch, and the medical care we receive have been widely touched by AI. Most people aren’t even aware of all the ways the world utilizes this technology—but, they’re certainly ready to learn!  

As CIO of Strategic Technology Solutions, I receive many questions from clients about AI. The firms we work with want to know if they should become early adopters, what the cost and use cases for AI are, and if AI can truly transform the way their firm works.  

The answers to these questions can be complex. To determine what’s right for your firm, it is crucial to understand what AI really is, how it actually works, and what the potential value and drawbacks are.  

In this article, we’ll give an overview of AI technology, its potential value to law firms, specific use cases in the legal industry, and what to consider before you take the plunge. First, let’s get to the bottom of the most common question we are asked: What actually is AI anyway? 

Understanding Artificial Intelligence: What is AI? 

“AI,” short for Artificial Intelligence, is a broad term that generally refers to the “intelligence” that technology can be trained to develop, which mimics how the human mind thinks. This intelligence, powered by an algorithm, allows AI tools to perform tasks involving logic and reasoning, like: 

• Making lists, organizing data sets, and other methods of aggregating information  

• Providing simplified searches and targeted answers to questions  

• Various business and personal tasks, which can include writing and sending emails, spell-checking documents, and routing customer service requests 

• Editing images and creating graphics  

The technology has grown popular in recent years as AI has become more advanced and accessible.  As demand for AI tools grew, many major companies integrated features like: 

• Chatbots and automated phone lines 

•  AI-assisted searches and product recommendations 

• Automated business tools for marketing, sales, customer service, and operations 

• AI photo editing apps, including retouching and social media filters and backgrounds 

• AI “assistants,” like ChatGPT, that help with daily tasks  

• “Smart cars” with driving assistance—even AI-powered self-driving cars now drive passengers! 

What is Generative AI? 

Many of the most popular AI applications fall under the category of “Generative AI,” also referred to as “GenAI” or “GAI.” Generative AI refers to applications where the AI model can create something, such as an image or text, using the prompt that a human gives it. GAI does this by pulling information from the web and other sources and “learning” the thought, speech, and visual patterns of humans by interpreting this content through an algorithm. AI algorithms are “trained” by developers using data sets so that they can generate content that mimics human logic and intelligence.  

How Can Law Firms Use AI? 

AI has plenty of use cases that are particularly valuable to law firms. Many of these tasks require human assistance, but a few can be done without any help from the people at your firm.  

Below we share some of the most common use cases for AI within a law firm, but keep in mind that this is not an exhaustive list—with so many new and evolving AI tools emerging, these are just some highlights. More options exist and continue to enter the marketplace all the time!  

Let’s explore what AI can do for your law firm today.  

How Can AI Work At My Law Firm? 

E-Discovery \ Litigation Support 

How AI Helps: AI tools can make searching large volumes of data, extracting relevant information, and pushing insights through your firm’s eDiscovery process easier and faster. 

Expertise Automation  

How AI Helps: AI automation solutions exist to serve a wide variety of functions for law firms of all specialties. These models can pivot between areas of expertise, unique internal processes, and specific needs with relative agility.  

Legal Research 

How AI Helps: AI has a unique ability to search, interpret, and summarize data. AI tools can help you find trustworthy sources, summarize long texts, and visualize data to reduce the time spent on research and enhance the learning process. 

DMS (Document Management Systems) 

How AI Helps: AI DMS tools can help law firms quickly catalog and search documents to make enhancing, organizing, and finding relevant documents simple and streamlined.  

Contract and Litigation Document Analytics and Generation 

How AI Helps: AI helps lawyers draw up contracts and litigation documents, and analyze these items, in record time by creating the language and crunching the numbers on your behalf.  

Predictive Analytics 

How AI Helps: AI can produce cutting-edge insights to help law firms forecast case outcomes, detect potential issues with compliance, and more through its ability to process and analyze data.  

Client Intake Automation Solutions 

AI tools can be especially helpful in onboarding clients. From generating and processing client forms to aggregating information and summarizing initial documents, the entire process of onboarding can be standardized and streamlined with AI.  

Marketing and Lead Generation 

 AI marketing tools can help your law firm target key channels and people to promote your services. Solutions exist for many key areas of your marketing plan, including email marketing, content writing, ad generation, and analyzing your marketing results. 

Personal AI / Legal Assistant  

AI tools can serve as “virtual assistants,” handling the tasks that are typically delegated to legal assistants, such as note taking, research, scheduling, and document processing/organization.  

How Much Does AI Cost for Law Firms?  

Both the cost and the time it takes to implement AI vary drastically because there isn’t a one-size-fits-all AI model. Your firm will need to discuss your unique goals and objectives with a trusted technology expert to determine which AI tools and applications best suit your needs. Because so many options exist, firms can typically find a tool and plan that fits their budget, especially with the help of a trusted technology partner. 

Concerns and Considerations for Law Firms Using AI 

Though AI is currently top of mind for many people, and its capabilities are strong, there are some issues to consider before your law firm implements AI. Here are three that you should understand. 

#1: The ROI Is Questionable 

There have been numerous reviews and studies of AI in businesses, and most of the data has not been able to show a true ROI at this time. AI is still an evolving technology, so the long-term effects on business productivity can’t be captured yet. Though AI can make doing business easier, firms should not consider it a definitively cost-effective—nor a cost savings– solution yet.  

STS provides technology services and solutions to many law firms, and in our experience, AI tools aren’t usually particularly cost-effective, especially for small to mid-sized firms. As this technology evolves and we gain more opportunities to study its value to law firms, we continue to advise our clients accordingly.  

#2: AI Cybersecurity and Compliance Concerns 

As of today, there are little controls and regulations placed on AI developers and the tools they bring to market, and the landscape of compliance and regulation continues to shift. This translates to a higher level of risk associated with AI, which law firms should be especially cautious about due to the nature of their work and the sensitive data they often deal with.  AI is in its relatively early stages of development, which means: 

• The amount of people using AI daily makes AI systems and tools an appealing target for hackers 

• The security risks are not yet well understood, documented, or cataloged  

• Bad actors can use code to fool the AI algorithms and gain access to systems or information 

• Vulnerabilities in AI technology are used as an entry point by attackers  

• AI is exploited and used by hackers to increase the effectiveness of cyberattacks 

Recently, government groups, technology organizations, and advocacy groups have raised debate over the details of AI policies and legislature. Some call for greater regulation over AI tools and systems in hopes of lowering the level of risk for consumers and organizations. On the other hand, developers raise concerns that heavier regulation may stifle the growth of the technology. At present, the future of regulatory and compliance rules for AI is uncertain. As firms consider adopting AI tools, they may need to prepare for interruptions or other unpredictable outcomes should new rules and regulations be imposed. In the meantime, consider the inherent security risks associated with adopting any new and emerging technology, including AI, and how a security incident may affect your compliance status and overall operations.  

#3: AI Gets it Wrong Sometimes (and Hallucinates) 

Though AI has grown more advanced in recent years, the accuracy of AI generated responses and content can still miss the mark. Remember, AI had to learn from someone or something, and that someone or something could’ve been wrong, meaning that AI has learned from bad data. Machine learning isn’t 100% perfect, and the margin for error is sizable. 

AI can make mistakes like mathematical and clerical errors, which can be detrimental if not double-checked and verified by human users. These errors can render critical items, like reports, articles, and emails, incorrect and even unusable.  

One of the major issues with AI tools, especially chatbots, is their “hallucinations.” AI hallucinations occur due to gaps in AI training that leave the tool unable to answer a prompt. Instead of turning back an error message, the tool makes up information to fill the gap. This fabricated information can be damaging when used and disseminated, as it is falsely represented as a fact and can easily mislead the user and intended audience.  

Publishing, sharing, or utilizing this incorrect information can greatly damage your firm’s reputation and throw a wrench into operations. To avoid the risk of utilizing mistaken or fabricated information, users should be prepared and trained to use AI responses as a guide, not a trusted source of information. 

Is My Law Firm Ready for AI? 

While these concerns are valid, they don’t necessarily mean that law firms should avoid AI altogether. In fact, AI can be a powerful tool for law firms—but as with any other technology solution, it must be implemented safely and securely, monitored as part of a larger cybersecurity framework, and must fit the use case and technology infrastructure of your firm. 

Whether or not your firm should use AI depends greatly on the circumstances. Your firm’s risk tolerance and established security environment play a big role in determining whether or not your IT environment is optimal for introducing AI. Can you afford to take risks with your current cybersecurity infrastructure and compliance requirements? The answer may be pivotal to your AI-readiness.  

The choice also depends on the type of AI tools you are considering and the outcomes you are hoping to achieve. Between seeking the highest value and assuming the lowest risk, the safest way to determine your firm’s AI readiness is to ask an expert.  

A Technology Partner’s Role in Law Firm AI  

The number one mistake law firms make when implementing AI is doing so without any guidance. Though many AI tools seem easy to use and implement on their own, we find that AI’s complex role in law firms and the risks of implementing technology can create more problems and costs than the solution addresses. That’s why, in order to make the most of your investment in AI, professional help is key.  

A trusted technology partner can help assess your firm’s security strengths and weaknesses, address specific business issues that may be improved with an AI solution, and vet third-party vendors to ensure you engage only the safest and most reputable partners.  

At Strategic Technology Solutions, we are always excited about the next generation of IT possibilities. Like all things we do, we’re taking a proactive approach to AI that is rooted in education, data, and risk management. We carefully evaluate our clients’ IT environments and make recommendations that address issues and risks holistically. We have honest and transparent conversations with our clients, helping to educate them about the sometimes-overwhelming details of AI so they can better their understanding and make confident decisions. By engaging with STS, clients avoid the risks of “shadow IT” (off-the-books technology that creates vulnerabilities for their firm) and prevent investments in the wrong technology that doesn’t meet their needs as intended. 

If you have questions about AI, I encourage you to reach out. Our experts are happy to have a conversation with you about the potential uses, and the risks, of AI at your law firm.