Lawyers start to use GPT-4 technology to do legal research, draft documents and analyze contracts<\/p>\n\n\n\n
By Erin Mulvaney and Lauren Weber
May 11, 2023 11:00 am ET<\/p>\n\n\n\n
Big law firms, known for their grueling hours and workloads, are experimenting with artificial intelligence tools that can handle the drudgery typically delegated to entry-level lawyers and simplify complex work that bogs down even top firm leaders.
Law firms, as well as legal departments staffed inside companies, now have access to software that can perform writing and research tasks such as drafting documents and reading contracts. Some of the tools can quickly perform legal research that normally takes hours, sifting through thousands of pages of case law in just minutes.
The new products use GPT-4, an advanced version of the commercially available ChatGPT developed by OpenAI. Known as large-language models, these tools can recognize patterns, make predictions and create content by processing enormous quantities of text, images and audio.
Large-language models will likely be a game-changer for white-collar occupations because of their ability to engage in sophisticated writing and research, said John Villasenor, a professor and co-director of the University of California, Los Angeles\u2019s Institute for Technology, Law and Policy.<\/p>\n\n\n\n
\u201cIt has the capacity to reshape the practice of law,\u201d Mr. Villasenor said.
Previous waves of automation mostly affected blue-collar jobs in industries like manufacturing, or back-office roles that required many calculations, such as accounting or mortgage processing.
Rapid developments in AI could pose threats to the type of work performed in white-collar professions, like the practice of law. AI could also change the financial dynamics of the legal business, which bills high rates for the many hours spent on complex, time-consuming tasks.
A March report by Goldman Sachs predicted that 44% of legal work can be automated using emerging AI tools. The same month, a paper by researchers at Princeton University, the University of Pennsylvania, and New York University found that the industries most exposed to occupational change from generative AI were legal services and securities, commodities and investments.
\u201cA lawyer\u2019s brain is basically a massive database of cases and precedents,\u201d said Min-Kyu Jung, a former practicing attorney who co-founded a firm called Latch, which uses GPT-4 to simplify the contract review and redlining process for lawyers. \u201cIt\u2019s something a computer can do much more effectively than a human could.\u201d
Latch launched in early April and already has a wait list of more than 80 companies, including law firms and in-house counsel, Mr. Jung said.<\/p>\n\n\n\n
Global firm Allen & Overy says thousands of lawyers are now using another tool using GPT-4 technology called Harvey for tasks such as legal research, drafting documents and contract analysis.
The firm\u2019s attorneys report spending less time locating hard-to-find case law, completing analyses and answering questions clearly and succinctly. Harvey hasn\u2019t replaced the work of lawyers, but instead provides a head start, they say. One partner described the impact as \u201chaving an extra junior resource available to you at any time of the day.\u201d
Will it mean fewer billable hours, the basis of a law firm\u2019s income stream? \u201cYes, it\u2019s a possibility,\u201d said David Lucking, a partner at the firm. Still, the adoption of AI at Allen & Overy doesn\u2019t necessarily \u201cmean there would be less need for a human element,\u201d he said.
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Clients are still wary about uploading sensitive information into cloud-based products, some law firm leaders say. Prospective AI customers also worry about transferring too much responsibility to software that is opaque to most people. \u201cSome people say, the last thing I want to do is outsource my judgment to AI,\u201d said Latch\u2019s Mr. Jung.<\/p>\n\n\n\n\n\n
LexisNexis, which has long provided information and analytics to the legal industry, announced last week it created a platform using GPT technology, as well. The company said it teamed up with some of the country\u2019s largest firms, Baker McKenzie, Reed Smith and Foley & Lardner.
This year, Fortune 50 companies such as Microsoft and Ford Motor tested a product called CoCounsel, which harnesses GPT-4 technology to prepare depositions, perform contract analysis and quickly complete legal research. Top law firms were also part of that beta group, including DLA Piper, Kirkland & Ellis, Skadden, Arps, Slate, Meagher & Flom and Orrick Herrington & Sutcliffe.
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Bennett Borden, chief data scientist at DLA Piper, said he still sees a need for human oversight when using the tool. For example, he said the platform once gave an incorrect answer to a question, an error that he said was caught by the lawyers who knew the material well. Such a mistake happened once in about 10,000 queries, he said.
A spokesman for legal-technology firm Casetext said it has several different functions on its platform, many of which aren\u2019t vulnerable to mistakes that can occur with GPT-style products.
A separate chat function allows users to brainstorm ideas, draft documents and then spit out answers that occasionally produces a wrong answer, but this is extremely rare, the company said.
The technology has cut down work in other cases, Mr. Borden said. He said he uploaded documents from a large case with a couple dozen defendants that has played out for decades. He asked the platform, \u201cAssume I\u2019m the CEO, what deposition questions can I expect?\u201d
The response included more than 100 questions that he said were \u201castoundingly spot on.\u201d
Jake Heller, co-founder at Casetext, which rolled out CoCounsel in March, said, \u201cIt doesn\u2019t replace the lawyer but frees them up to do the things humans do and robots can\u2019t.\u201d
The incorporation of AI could also change the profession\u2019s revenue model. Some firms and legal observers acknowledge that the billable hour could become pass\u00e9 if the tools could cut down on the need for some associate work.
\u201cSome massive law firms are overweight in many ways. The way they do business is antiquated,\u201d said Andy Wilson, chief executive and co-founder at Logikcull, a legal-technology company that recently incorporated ChatGPT to elevate its search and discovery functions.
\u201cThey are addicted to that billable hour.\u201d
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