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Artificial intelligence (AI) is now in most industries in the US. In agriculture, it’s known as precision agriculture and fintech in finance. In manufacturing, it’s Industry 4.0 and intelligent mobility in transportation.
Of course, the legal industry is in on the action, too, and it has its name for AI use – LegalTech. The portmanteau (i.e., Legal + Technology) refers to the use of technology to:
- Provide and improve access to legal services
- Support and increase efficiency in legal processes
- Reduce costs for both the law firm and its clients
In the legal industry, technology refers to software and artificial intelligence. Popular brand names include Clio, LexisNexis/Westlaw, and Ironclad.
The legal industry is, indeed, ready for its AI transformation. Many of its time-intensive processes demand days of extensive manual work. This is particularly true for case law research, contract analysis, and document review.
With AI-powered tools, it only takes a fraction of the time to complete these processes. Lawyers can then focus on high-value strategic work that demands human intelligence. Think of negotiations in contentious divorces and nuanced arguments in a defense case.
Indeed, AI isn’t here to replace lawyers because AI isn’t human intelligence. Instead, AI makes legal work more efficient for lawyers, a tool that complements their work.
The acceptance rate proves it, too. In FBA’s The Legal Industry Report 2025, 31% of respondents say that they used generative AI for work. This is a 4% increase from last year’s 27% use.
Current AI Applications in Law
There’s a wide range of LegalTech applications currently in use.
Legal Research and Document Review Automation
Legal research and document review are among the most time-intensive tasks for lawyers. The high stakes and evolving body of laws demand precision, relevance, and verification.
Lawyers use AI-powered tools to streamline these tasks without compromising precision and relevance. Time savings mean money savings, too, an important aspect of a law firm’s business.
Popular AI-powered tools for this purpose include:
- LexisNexis
- Everlaw
- Casetext
Contract Analysis and Predictive Analytics
Contracts are your bread and butter, especially in corporate and commercial practice. So, it makes sense that AI-powered tools have become vital in contract processes. These tools automatically flag inconsistencies, extract clauses, suggest revisions, and more.
Predictive analytics is also valuable because it analyzes past case outcomes. Lawyers can use its data to make strategic recommendations to clients.
Law firms use these AI-powered tools:
- Kira Systems
- Luminance
- ThoughtRiver
Chatbots and Virtual Legal Assistants
AI-driven chatbots answer common legal questions and provide basic legal information. Virtual legal assistants aid in appointment scheduling, case file organization, and more. Both tools enable lawyers to focus on more complex tasks, such as trial preparations.
Familiar names in AI-driven chatbots and virtual legal assistants are:
- DoNotPay
- LawDroid
- Rossum
AI-Powered E-Discovery
E-discovery refers to the identification and collection of digital evidence for litigation. Digital evidence can consist of terabytes of documents, messages, and emails. Humans may find it to be a needle-in-a-haystack, time-consuming process.
AI-powered tools cut human time and effort in half if not more. These tools can also identify anomalies and recognize duplicates, among others.
But lawyers and their human judgment are still a must in the process. You must determine the relevance and reliability of the digital evidence. AI can only speed up the e-discovery process, but it doesn’t usually have context and nuance.
Popular AI-powered e-discovery tools include:
- DISCO
- Zapproved
- Casepoint
Legal Billing and Time Tracking Automation
Time tracking and legal billing are crucial in a law firm’s success because these:
- Ensure accurate revenue reporting and client invoicing
- Aid in monitoring and improving the lawyers’ performance
But these tasks are time-intensive, too, not to mention at high risk for errors and fraud. This is where AI-powered tools come into the picture. These tools generate detailed timesheets based on calendars, emails, and calls.
Popular brand names include:
- Clio
- Timeslips
- Bill4Time
These AI applications highlight the fact that AI isn’t an existential threat to lawyers. Instead, AI is a transformative force in the legal profession.
Benefits that AI Brings for Lawyers
AI-powered tools bring a wide range of benefits to lawyers and law firms.
Increased Efficiency and Productivity
AI-powered tools can perform time-consuming, repetitive and routine tasks at a faster rate. Legal research and contract analysis don’t take up as much time.
Even administrative tasks can be automated. Time tracking, scheduling, and invoicing take up less time with AI-powered tools.
The result is increased time and cost efficiency. Lawyers can also focus on more critical tasks and, thus, increase their productivity.
Improved Client Service
Clients enjoy faster, more informed, and more strategic responses, too. Their invoices also have lower amounts because lawyers save time on research.
Potential for New Roles and Services
AI opens opportunities for new roles and services, including:
- Specializations in AI compliance, algorithmic accountability, or data privacy
- Roles like LegalTech advisor or AI ethics consultant
- Services like digital risk assessments and technology audits
The key to unlocking these opportunities is an open mind and a willingness to learn. With AI being an ever-changing technology, learning, unlearning, and relearning are vital.
AI can also increase access to legal services and, thus, aid in fighting inequalities. This is possible when LegalTech tools:
- Decrease the costs of legal services (i.e., automation)
- Provide basic legal information and guidance (i.e., chatbots)
- Translate legal jargon into layman’s language
Of course, enjoying these benefits comes with a learning curve. Lawyers must also leverage these tools’ features and functions.
Challenges and Ethical Concerns of AI Use in the Legal Industry
LegalTech isn’t without its challenges and limitations. Lawyers must carefully navigate ethical concerns, too, or else face the consequences. After all, the legal profession is built on public trust and integrity.
Here are the most pressing current challenges that LegalTech presents.
Risk of Job Displacement
Automation poses a serious risk for paralegals, junior associates, and administrative staff. Entry-level jobs can shrink because of it, too. Well, at least, this is a widespread concern among legal professionals.
The good news is that AI can’t replace humans and their judgment and intuition. Yes, some roles may shrink or shift, but most jobs will likely evolve. Lawyers are well-advised to develop tech literacy skills and adapt to AI as it evolves.
Data Privacy and Algorithmic Bias
Client information is at higher risk, too, especially with cloud-based AI-powered tools. Data privacy breaches and software vulnerabilities are common risks.
Lawyers must be aware of these risks and take measures to mitigate, if not eliminate them. Otherwise, these can harm their clients and damage their reputations. Worse, there’s a high potential for costly legal consequences.
Algorithmic bias can also reinforce existing biases and discrimination in the legal system. When left unchecked, its consequences include erosion of public trust.
Regulatory Uncertainty and Liability Issues
Who has the ultimate responsibility for errors made by AI-powered tools? What are the standards and ethics for AI-generated legal work? These are a few of the questions surrounding LegalTech that lawyers must tackle.
And then there’s the question of how much use is too much use of AI. Over-reliance on AI can compromise accountability and transparency. Legal ethics suffers, too, and human connection and trust can be lost.
In the end, human oversight is vital in the proper use of LegalTech – it’s non-negotiable.
Key Skills Lawyers Must Have in an AI-Driven Future
LegalTech will evolve because technology is an onward and forward-driving force. But lawyers must have these key skills regardless of these changes.
- Tech literacy and the willingness to learn, unlearn, and relearn their tech skills
- Fluency in LegalTech tools and platforms
- Ethical reasoning and decision-making skills wherein AI-powered tools as just that – tools
- Interdisciplinary communication and collaboration skills
- Commitment to lifelong learning and adaptability
Best Schools and Programs for AI Training for Lawyers
Check out these schools and programs for excellent LegalTech training.
University of California Berkeley – School of Law
The LL.M. Executive Track AI Law and Regulation Certificate program offers comprehensive training. Students learn about AI-related legal issues, among others.
UC Berkeley also offers CLE webinars that cover LegalTech topics. AI, data privacy, and cybersecurity webinars are popular.
Sam Houston State University
SHSU offers short-term certificate programs in AI through SamPoly, its new polytechnic college. Lawyers will find its Level I and Level II certificates useful in their careers. Check out its Practical AI and Intelligent Automation program.
Check out online platforms and CLE providers, too. Clio and Refonte Learning are among the best for this purpose.
Conclusion: Preparing for Success in a Hybrid Legal Future
LegalTech is here to stay, but it won’t replace lawyers and other legal professionals. Yes, it’s redefining the roles of lawyers and reshaping their legal services. But LegalTech is still under human jurisdiction – humans design and use it for their benefit, not the other way around.
With that said, lawyers must prepare for a hybrid legal future. You must embrace change, develop tech skills, and learn continuously. This way, you’ll remain relevant and, thus, competitive in an ultra-competitive industry.
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