New Report Highlights Concerns Over Generative AI Use in Law Firms

Published On Sat May 13 2023
New Report Highlights Concerns Over Generative AI Use in Law Firms

One-in-five large law firms issue warnings over use of generative AI

A new report reveals that while there is high awareness of generative AI tools among legal professionals, only around half of them believe it should be used for legal work due to concerns over accuracy, privacy, confidentiality, and security. The survey conducted by Thomson Reuters shows that 15% of the respondents stated their firms had issued warnings regarding the use of generative AI or ChatGPT at work, with the percentage increasing to 21% for those working at large law firms. Meanwhile, 6% noted that their firms had completely banned the use of unauthorised AI tools.

Although 82% of respondents agreed that generative AI tools could be applied to legal work, only just over half agreed that they should. 24% of respondents did not believe that the tools should be applied to legal work, while 25% were unsure. The report also noted that generative AI could present a uniquely powerful proposition for mid-size firms.

Positive outlook for generative AI in non-legal work

The report highlights a more positive outlook for law firms’ non-legal work, with 72% of respondents agreeing that generative AI or ChatGPT should be applied in such cases and just 7% disagreeing. However, the current use of generative AI or ChatGPT for law firm operations is rare, with just 3% of respondents stating it currently being used at their firm. Six out of ten respondents said their firm had no current plans for generative AI in their operations.

Concerns around accuracy, privacy, confidentiality, and security

The poll results show that the main reason for the disparity between the potential utility of generative AI in law firms and its adoption is the concerns legal professionals had about its potential risks, which fall into four main categories – accuracy, privacy, confidentiality, and security. A full 62% of respondents stated their law firm had concerns around the use of generative AI at work, while an additional 36% said they did not know how their firm views its risk. Just 2% said their firms had no concerns.

The accuracy of generative AI tool is a common concern among respondents, who believe that it may fail to spot errors in legal work that human lawyers would identify. There are ethical concerns around acting in the best interest of the client. The report also highlighted concerns around the data and information used for the AI system to function, particularly if that includes private client data. Some respondents also expressed concerns about the confidentiality of source material used to generate AI output and the fear of AI learning incorrect or inappropriate behaviours.

The report concludes that the legal industry, like many others, will be greatly impacted by the evolution of generative AI and public-use models like ChatGPT. The report also added that a day will come when generative AI and ChatGPT are as common in law as online legal research and electronic contract signing.