Disclaimer:  The views, opinions, and findings expressed in this article are those of the author and do not necessarily reflect the position or policy of the Editorial Board or Management of JLTP or the Governing Body of Young Lawyers Forum.


By Sakshi Chaplot


In this research, the impact of artificial intelligence (AI) on the legal field was explored. AI applications can potentially revolutionize several legal system processes, including case administration, contract analysis, and legal research. AI may increase productivity, improve customer service, free up lawyers' time for higher-level duties, and provide law firms with a competitive edge by automating repetitive jobs and supplying data analytic skills. The use of AI in the legal sector does, however, come with some drawbacks, such as the potential loss of jobs, problems with legal personalities, privacy concerns, and determining responsibility for outcomes produced by AI. The paper highlights AI techniques and technology used in contract analysis and legal research. And case management tools include Clio, Kira Systems, ROSS Intelligence, Case text, and Lex Machina.

Additionally, it identifies issues with technology competency, confidentiality, oversight, independent judgment, and bias in AI algorithms as they apply to using AI in the legal sector. Examining AI's effects on Indian legal processes demonstrates how it might streamline and practicalize legal labour. The thesis's conclusion highlights that, even though AI can increase productivity and accuracy, the legal sector will still require the development and Application of AI technology.

Keywords: Artificial intelligence, Contract Analysis, Legal Industry, Legal Research, Predictive Analysis.

1. Introduction

“Success in creating artificial intelligence would be the major event in human history. Unfortunately, it might also be the last unless we learn how to avoid the risks”.- Stephen Hawking

Artificial intelligence (AI) is the name given to the "intelligence" exhibited by machines, where they showcase human intelligence's cognitive behaviours or characteristics, such as thinking, problem- solving and critically analyzing.[1]

Simply put, AI uses technology to automate tasks that typically require human intelligence by applying brains to machines that enable them to make their own decisions.

The rapid development of science, the fast-evolving field of research and its competition with human abilities could be frightening and intimidating for lawyers.

AI applications could transform the legal system as the Lawyers can focus on higher-level responsibilities including negotiating contracts, appearing in court, and advising clients.

Whereas the AI could take care of the research and document review, removing the tiresome and frequently tedious processes of looking through and evaluating numerous documents and contracts, the mundane work that legal scholars loathe could be performed faster and with fewer errors and lesser time decreasing stress and burnout[2]

Ø  Software with AI capabilities can effectively: Verify facts and statistics and check papers for grammatical and informational mistakes.

Ø  Technology-assisted review (TAR) is investigating, analyzing, and reviewing previous cases' holdings and documents for information that may be discoverable.

Ø  Find hazards and problems that could take an experienced attorney day to find.

Ø  Examine several papers to see if they relate to a particular case or law.

Ø  Produce information that has been statistically validated more quickly and accurately than humans.

Ø  Sort through contracts more quickly and accurately than people could

Ø  AI can anticipate the results of legal procedures with much greater accuracy when it has access to years' worth of trial data.


2. Research Methodology

The present research will be mainly Doctrinal. It will be carried out utilizing data from secondary sources. Various scholarly articles and case laws/landmark verdicts of Apex Court from the USA and India were collected and critically analyzed for the research study, In addition to library resources, reports, internet resources, and case studies were used. Additionally, it will be a type of socio-legal study based on legal principles and procedures.


3. Review of Literature

By Kristen E. Murray, "Artificial Intelligence in Law: The State of Play in 2019" (2019):[3]

Murray summarises the current state of AI in the legal field. The Application of AI in legal research, contract analysis, and managing legal practices is covered in the article. It emphasizes the advantages of adopting AI, including cost savings and increased efficiency, while recognizing drawbacks, like poor data quality, ethical issues, and potential job displacement.

"Artificial Intelligence and the End of Work" by Richard Susskind and Daniel Susskind (2018):[4]

Susskind & Susskind talk about the broader effects of AI on several sectors, including the legal industry. They contend that AI will revolutionize law practice by automating repetitive processes and creating new positions for legal practitioners. The paper examines AI's potential impact on conventional legal occupations and makes a proactive adaptation recommendation.

Rao. A and Gore explain in their paper that “Indian courts of law can benefit immensely by adopting artificial intelligence methods for speedy and accurate justice”.[5]With AI technology, the Indian judicial system is in its early stages of development. This technology has a lot of potential benefits, and it will be quick and inexpensive to implement. It is ludicrous to believe it poses a danger to the legal system. It has been demonstrated via its use in various industries that it improves efficacy while also reducing the time spent on activities when performed manually. The legal system has characteristics such as unpredictability, complexity, flexibility, and discretion, which appear to be the rationale for AI not intervening and instead providing support. The ability of AI to substitute manual but also clerical work will allow workers to focus on other vital aspects and make the best use of their time while also allowing them to live a more balanced existence by decreasing their workload. The intricacy of the enormous case information would require a lot of time to analyze it effectively, and the results could even contain errors. Still, AI makes this arduous work much more accessible.


4. Benefits and Challenges in Indian Law Firms, Courts or Legal Departments

4.1  Benefits-:

Ø  Improved Due Diligence[6]: AI technology can increase the precision and effectiveness of due diligence duties, including fact-checking, risk assessment, and agreement structure analysis. Lawyers can devote their time and energy to more worthwhile endeavours by reducing their time and effort.

Ø  Effective Legal Research: AI-powered tools allow lawyers to examine enormous amounts of legal material quickly and precisely, improving their research capabilities. As a result, legal arguments and tactics become more thorough and knowledgeable.

Ø  Improved Client Service: By automating routine tasks, AI frees up lawyers to concentrate on giving clients individualized and strategic advice. As a result, customer relations, contentment, and general service quality all improve.

Ø  Contract Drafting: AI technologies with practical tools can produce contract drafts, giving lawyers rudimentary agreements tailored to specific needs. This improves efficiency and streamlines the contract creation process.

Ø  Competitive Advantage: Law firms that employ AI technologies can acquire a competitive edge by providing cutting-edge legal services and luring more clients. Utilizing AI capabilities can help them stand out from rivals and retain the best talent[7].

4.2  Challenges-:

Ø  Reduction in job opportunities- customer service agents and underwriters may lose their employment within the next ten years due to AI. As a developing country, India might lose its substantial population not well-versed in law and technology.

Ø  Legal personality- Indian law does not recognize AI as a legal person, which raises concerns under various laws such as contract law- the requirement of a legal person to make the contract enforceable; Labour law- equipped for human workforce only, IPR laws- challenging to determine the creative author of the outcomes of AI, Income tax laws- Indian law only taxes legal persons leaving the money earned by AI unaccounted.

Ø  Privacy concerns- The usage of AI in legal companies raises concerns about ethics and privacy. It is necessary to ensure compliance with data privacy rules and safeguard customer confidentiality as it stores sensitive client data.

Ø  Assigning liability[8]- an AI entity cannot currently be held accountable in its own right. This rule ought to be re-evaluated, given the emergence of autonomous, highly advanced machines in our daily lives. Assigning blame becomes crucial to offer AI victims a legal remedy or compensation.


5. Analysis of Specific AI technologies or tools used in Legal Research, Contract Analysis or Case Management

Ø  Case text[9]- a platform for legal study driven by AI that analyzes and organizes case law using NLP methods. It saves time and improves the research process by giving users pertinent case summaries, significant excerpts, and associated authorities.

Ø  ROSS Intelligence[10]- an AI platform that helps with legal research using machine learning. To give pertinent information and predictive analytics, it can examine statutes, court rulings, and legal opinions. As a result of user feedback, the system continuously enhances its accuracy and relevance.

Ø  Kira Systems[11]-  A Popular AI contract analysis tool that evaluates contracts and extracts pertinent data combining NLP and ML algorithms. The contract review and due diligence process can be accelerated by its ability to detect clauses, provisions, and key terms.

Ø  Clio- a cloud-based legal practice management software that enables law firms to organize papers, create reports, and automate procedures while keeping track of case information. It can offer insights into case patterns, time tracking, and task management with AI interactions.

Ø  Lex Machina - This AI platform provides predictive analytics for legal practitioners. Analyzing litigation data with ML algorithms can shed light on judge behaviour, case results, and the tactics employed by the other side's attorneys. It is making informed decisions and creating winning case strategies easier for attorneys.


6. Potential Ethical, Privacy or Security Concerns related to AI implementation in the Legal Field

Ø  Technology proficiency: Lawyers must have the requisite technology proficiency to employ AI tools properly. Lack of sufficient training and comprehension of AI technology can result in mistakes or misuse, impacting the fairness and accuracy of legal processes.

Ø  Client confidentiality is a professional obligation for attorneys to uphold. However, security breaches or unauthorized access can occur when AI systems handle sensitive client data. It is essential to protect customer data and ensure confidentiality standards are followed.

Ø  Supervision and Client Communication: Lawyers who use AI technologies must clearly explain to their clients the conclusions reached by these tools. It is crucial to uphold openness and foster faith in the impartial judgment of the system.

Ø  Bias in AI Algorithms: AI algorithms may pick up biases from the data on which they are taught, which could lead to erroneous legal decisions. Fairness issues are raised by this, especially in fields like criminal justice. To achieve egalitarian results, efforts must be made to recognize and reduce biases in AI systems.

Ø  Data Security and Privacy: Artificial Intelligence in the Legal Sector necessitates the gathering and processing of enormous volumes of data. To protect the privacy and confidentiality of people's personal information also, it is essential to abide by data protection laws and regulations.

Ø  Security Risks: Artificial intelligence (AI) platforms and systems utilized in the legal sector may be exposed to cybersecurity risks. It is crucial to safeguard sensitive legal data against illegal access, data breaches, and cyberattacks to keep the legal system's credibility and integrity.

Ø  Ethical Decision-Making: The employment of AI calls into question the moral obligation of attorneys and other legal professionals. They are responsible for making that AI is applied morally upstanding, open, and professionally while prioritizing their clients' interests and obeying the rules of justice.


7. The Impact of AI on Indian Legal Practices

The term 'AI and law' refers to the use of algorithms and mathematical resources to render law more sensible, feasible, advantageous, accessible, or likely. The social organization model has influenced multi-agent systems; rationale with legal cases has influenced case-based reasoning; and the necessity to store and retrieve huge volumes of textual material has influenced semantic information retrieval and cognitive databases. Legal decision-making theories, particularly the argumentation model, are useful for informed representation.[12]

According to a 2018 study, LawGeex, an AI contract evaluation platform, tested it on human lawyers. Surprisingly, the machine scored a 94% accuracy rate when surfacing dangers in confidentiality agreements (NDAs), compared to experienced human lawyers, who reach an 85% accuracy rate for the same activity on average. The legal artificial intelligence system finished the evaluation in 26 seconds instead of an average of 92 minutes by human attorneys. The businesses use AI for routine legal tasks like contract drafting and assessment, document mining during discovery, recurring question answering, and data analysis to forecast results[13]. Legal AI allows lawyers to make decisions based rather than only on the current and future of the law's historical examples.

Even though computers have surpassed lawyers at more straightforward tasks, knowledgeable attorneys are still needed as trusted advisors in significant transactions. The objective is to ensure that the study is carried out more precisely than any individual or tech alone could by combining AI and human brainpower.


8. Analyzing different AI Case Laws: Insights into Legal Issues and Prior Cases

Ø  Carpenter v. United States[14]: In the context of cellular location data, Carpenter v. United States established a precedent for the Fourth Amendment's safeguarding against arbitrary searches and seizures. The court reviewed whether the government breached an individual's reasonable expectation of privacy when it got historical location data for cell sites (CSLI) without a warrant. The decision, which touched on the consequences of AI technologies in gathering and analyzing enormous amounts of personal data, established a landmark precedent for privacy rights in the digital era.

Ø  Taylor v. Amazon.com, Inc[15].: This case clarified the product liability concerns brought on by AI-driven recommendation systems. The lawsuit concerned a faulty hoverboard purchased from Amazon's online store that created a fire that harmed people and property. The court considered the use of AI algorithms in product suggestions and whether Amazon could be held accountable for the flawed product. This case served as a reminder of the necessity to develop liability frameworks for AI-powered systems and online marketplace obligations.

Ø  R. v. Mohamed[16]- The court discussed using AI-based use of face recognition technology as evidence in this criminal case. The trial focused on the accuracy and dependability of the technology as it investigated the admissibility of facial recognition evidence produced by AI algorithms. The court's ruling underscored how crucial it is to guarantee AI-based evidence's accuracy, dependability, and scientific validity in court cases.

Ø  Ritesh Sinha v. State of Uttar Pradesh[17]: This landmark case involved the admissibility of evidence produced using AI technologies—Ritesh Sinha v. State of Uttar Pradesh. The Allahabad High Court approved using voice recognition technology to confirm an audio recording's veracity. The case demonstrated how Indian courts are adapting their acceptance and trustworthiness of artificial intelligence (AI) evidence in legal procedures.


9. Future Development

Ø  The impact of AI on the legal industry is far from reaching its full potential. We can expect further developments and enhancements in AI-powered legal tools as technology advances. Here are a few areas where AI is poised to make significant strides in the future:

Ø  Predictive Analytics: To forecast case outcomes, AI algorithms can evaluate massive volumes of legal data and patterns., assess risks, and provide valuable insights. Predictive analytics can assist lawyers in making informed decisions, improving litigation strategies, and enhancing negotiation tactics

Ø  Natural language processing (NLP): algorithms driven by AI can comprehend and translate interpret human language, enabling lawyers to extract critical information from legal documents, contracts, and verbal communication. By understanding and responding to complex legal queries, NLP can enhance legal research, contract analysis, and client interactions.[18]

Ø  Data Analytics: AI can leverage data analytics to extract meaningful information from large datasets, aiding decision-making and legal strategy formulation. By analyzing patterns and trends, AI can identify hidden connections, provide valuable insights to support legal arguments and assist in case preparation.

Ø  Blockchain Technology: Blockchain technology, combined with AI, can revolutionize legal processes such as contract execution, record-keeping, and intellectual property protection. Smart contracts powered by AI and blockchain can automate contract enforcement and enhance transparency in legal transactions.[19]


10. Method

This study paper aims to investigate the field of AI and its implications Indian legal system. On this subject, academic and legal study is conducted. This essay also seeks to determine whether the legal system's standard dimensions and functioning have changed due to the introduction of AI. Most of the sources used for this legal research include research papers, legal journals, websites, and publications in this area. The sources mentioned above are carefully read to compile the information, and then it is determined whether the growth of artificial intelligence has significantly altered the legal system. It also emphasizes the advantages and disadvantages of the modifications made due to the growth of artificial intelligence. The paper also highlights its adjustments to people's daily lives.


11. Suggestions

Establishing suitable legal frameworks, ensuring data privacy, addressing biases in algorithms, and providing legal professionals with the requisite knowledge and expertise in AI are all essential for maximizing the benefits of AI while minimizing hazards. By doing this, the Indian legal sector can use AI to improve legal services, expedite workflows, and provide more effective and fair results[20].


12. Conclusion

Although technology may be both a blessing and a curse, For law firms that use AI, legal work will get more systematic and practical. It is up to every organization to deploy new AI technologies to gain the most substantial benefits. As AI systems render it easier for law firms to achieve a market advantage, those who commit to lowering manual and labour-intensive chores, improved customer retention, cheaper expenses, and more accurate choices and job production will surely benefit. surpass those that choose to stay grounded in the status quo.

However, even though these cutting-edge technologies can complete some tasks more quickly and accurately, human skill is still essential to developing and applying AI technology. Artificial intelligence, as well as the creative solutions linked to it, are shaped by human intellect. Human intelligence seeks to ask 'why' and considers 'what if' through critical thinking.

The future of the legal sector is primed for innovation and efficiency thanks to AI's revolutionary capabilities, which will ultimately result in better legal results and increased access to justice for all. The existence of artificial intelligence is neither beneficial nor evil. While it could make some individuals sluggish, it also helps them become more productive than their predecessors. Rapid technological advancements have caused them to become widespread social issues. As AI and its range of applications develop, the implications of law will likely be significant and wide-ranging. In light of this context, it's essential to consider how seriously concerned we should all be about enforcing and regulating Artificial Intelligence.


[1] Preeti Ahluwalia, Artificial Intelligence: A Friend Or Foe For The Legal Industry?, LIVELAW (July 07, 3.30 PM), https://www.livelaw.in/columns/artificial-intelligence-a-friend-or-foe-for-the-legal-industry-157322

[2] Alex Crowley, AI and Legal Services in 2020, IITA (July 07, 2023, 6:00 PM), https://www.iltanet.org/blogs/alex-crowley1/2020/02/04/ai-and-legal-services-in-2020

[3] Anushka Dutta, Artificial Intelligence: Its Impact on the Indian Legal System, 2(3) INDIAN J. INTEGRATED RSCH. L. (2022)

[4] Daniel Susskind & Richard Susskind, The Future of Professions, AMERICAN PHILOSOPHICAL SOCIETY (July 10, 2023, 5:30 PM),  https://www.amphilsoc.org/sites/default/files/2018-11/attachments/Susskind%20and%20Susskind.pdf

[5] Arni S.R. Srinivasa Rao a b, Anil P. Gore, Indian courts of law can benefit immensely by adopting artificial intelligence methods in bail applications for speedy and accurate justice, 49 HANDBOOK OF STATISTICS 227, 232-233 (2023)

[6] Artificial Intelligence (AI) – is it competition or collaboration?, AURECON (July 11, 2023, 7:00 PM),  https://www.aurecongroup.com/insights/artificial-intelligence-vs-humans

[7] Steve Lohr, A.I. Is Doing Legal Work. But It Won’t Replace Lawyers, Yet, THE NEWYORK TIMES (July 11, 2023, 6:30 PM), https://www.nytimes.com/2017/03/19/technology/lawyers-artificial-intelligence.html

[8] Ahluwalia, supra note 1

[9] R.L. Adams, 10 Powerful Examples of Artificial Intelligence in use today, FORBES (July 10, 2023, 08:32 AM), https://www.forbes.com/sites/robertadams/2017/01/10/10-powerful-examples-of-artificial-ntelligence-in-use-today/#510ac359420d

[10] Artificial Intelligence (AI) for the practice of law: An introduction, ROSS (July 12, 2023, 7:30 PM), https://blog.rossintelligence.com/post/ai-introduction-law

[11] Id.

[12] Dutta, supra note 3

[13] Lohr, supra note 7

[14] Carpenter v. United States, 484 U.S. 19 (1987)

[15] Wreal, LLC v. Amazon.com, 38 F.4th 114 (11th Cir. 2022)

[16] R. v. Mohamed, 2014 SCC 63

[17] Ritesh Sinha v. State of Uttar Pradesh, (2019) 8 SCC 1

[18] Vidushi Marda, Artificial Intelligence Policy in India: A Framework for Engaging the Limits of Data-Driven Decision-Making, PHILOSOPHICAL TRANSACTIONS A: MATHEMATICAL, PHYSICAL & ENG’G SCI. (2018)

[19] Aprajita Tyagi, E-commerce- from push/impulsive to intelligent, 5(1) J. LEGAL STUD. & RSCH. (2019)

[20] David Lat, The Ethical implications of Artificial Intelligence, ABOVE THE LAW (July 15, 2023, 5:20 PM), https://abovethelaw.com/law2020/the-ethical-implications-of-artificial-intelligence

This work is licensed under Attribution 4.0 International  

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