|AI can transform the legal services market / Photo Credit: Phonlamai Photo via Shutterstock|
Artificial intelligence has the power to transform any industry, which is why many sectors are heavily investing in it. The legal services market, one of the largest in the world, is one of them. Every day, whether we are aware of it or not, we encounter law. While legal service is considered as one of the most successful industries, it remains profoundly under digitized. But this can change with the help of AI.
AI applications can transform several areas in this industry.
Litigation prediction – Usually, it’s a lot difficult for a case to progress because there are a lot of documents that need to be reviewed first. Thus, it’s hard to predict the results of a case. Fortunately, AI teams are creating machine learning models to predict outcomes of pending cases. They are using the corpus of relevant precedent and a case's particular fact pattern. Accurate predictions have major impacts on the practice of law.
Blue J Legal, a Toronto-based startup, is currently developing an AI-powered legal prediction engine that can predict case outcomes with 90% accuracy. "We are already starting to see significant advantages being gleaned by sophisticated parties leveraging machine learning legal prediction technologies," the company’s CEO, Benjamin Alarie, said.
Contract review – Contracts are used in every industry, but the process of drafting and finalizing this document requires a lot of work. It usually takes long weeks or months, which can delay business deals and impede business objectives. At the same time, mistakes due to human error are prevalent. For this reason, startups like Lawgeex, Klarity, Clearlaw, and LexCheck are developing AI systems to address these problems.
According to Forbes, a global media company focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle, these systems can automatically ingest proposed contracts, analyze them in full using natural language processing (NLP) technology, and determine which portions of the contract are acceptable and which are problematic.