The capabilities of artificial intelligence (AI) have increased within these last couple of years, and with that, the impact of AI is quickly growing. AI tools have made it more efficient for various professions, especially the legal profession, when streamlining workflow. AI has already started to change the practice of law, making it easier to collaborate and communicate with teams. But, users must first understand how AI works and how its capabilities could best align with the corporation in order to be able to efficiently use it.

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There are different types of AI, this includes:

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• Robotic process automation: This is mostly used for data entry, including invoice processing
• Natural language processing: this enables the AI program to listen and understand what the user is requesting
• Machine learning: This type of AI learns the actions of the user, and gives better results every time
• Expert systems: Provides in-depth research to allow the user to make decisions
• Cognitive computing: Solves complex problems by taking into account previous work done for the user
• Generative AI: Generates new content in response to previously generated content
• Computer vision: Interprets images

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Above are just some examples of the different capabilities AI has. AI programs could incorporate one or all of the above in their applications.

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Using AI In the Legal Corporate Field

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Various different types of AI could be used in the corporate legal environment. Some examples may include:

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• Analytics: This is used for drafting documents, such as legal research memos, non-disclosure agreements, partnership agreements, franchise agreements, sales agreements, or corporate governance documents. The AI program starts to learn various terms that the user has integrated into the document and then starts to predict the next word, making it more efficient for the user.
• E-discovery: E-Discovery tools could be used to organize and manage various records, such as company emails, investment agreements, trademarks, and licensing agreements, making it easier for the user to sort through relevant documents.
• Virtual assistants: AI virtual assistants make an attorney’s everyday tasks easier by organizing company contacts, coordinating meetings, and managing templates
• Document analysis: Currently several different AI programs analyze and summarize documents, which could be beneficial for contract review and audits.
• Risk management: AI could monitor and track any potential risks in the company's operations, create risk maps, monitor sensitive company data, and automate record-keeping.
• Contract analysis: AI could be used to analyze any risky company contracts and highlight any potential compliance issues that may arise, or may need renegotiating.

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How To Properly Use AI In The Workplace

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1. Identify company needs. Identifying everyday tasks is important when determining what type of AI application the department may need. For example, if the department manages several different contracts and records, contract management and compliance applications may be needed.
2. Assess challenges and inefficiencies. Some examples of common inefficiencies in corporate legal departments include contract management and research.
3. Research AI applications. Explore the different AI capabilities, such as natural language processing, predictive analysis, machine learning, etc. to see what type of tool would best help your company.
4. Request demos from AI vendors to see how they may help your everyday systems. Monitor and schedule adequate training and resources for your team.
5. Read through testimonials and case studies of various other legal professionals with whom we have used those AI vendors. Research the vendor's history and mission to seewhat closely aligns with your client's goals and priorities. Look for relevant certifications, such as ISO and SOC 2 certifications.
6. Review the service level agreements to determine the AI vendor's responsibilities, workflow processes, and accountability.
7. Ensure that the AI tool is compatible with your data formats, data security, and processing programs.
8. Gather feedback from other attorneys in the department to monitor the AI tool performance workflow impact and review results.
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Be Mindful of Your Client Guidelines

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Many companies may not be so interested in efficiency as other clients may be. Be mindful of client guidelines and priorities, while also mitigating risks. Some examples of enterprise priorities may include:

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• Fine-tuning and streamlining an internal program or LLM already in place
• Working with an AI vendor to heighten security
• Investing in efficient programs to remove everyday repetitive tasks

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Regulatory Landscape

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AI will soon be heavily regulated in the United States. Currently, many states have pending bills. The European Union recently passed several bills that explain the risk of AI, categorizing risks as unacceptable risk, high risk, limited risk, and no risk. These categories stand as the initial framework for helping users identify confidential and non-confidential information.

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Challenges Of AI Accuracy

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The concept of AI seems to draw both positive and negative feedback. For example, many attorneys are reluctant to use AI, fearing inconsistencies and inaccurate case sites. For example, in a recent study by Stanford RegLab, one out of six AI tools were referring to false information, now referred to as “AI hallucination.”

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Recently, a New York attorney was even sanctioned in court for drafting a motion citing to madeup New York cases. This instance was an eye-opener to many attorneys, with many now havingto double-check or triple-check their work after using AI tools.

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In another study, Westlaw and Nexis AI-assisted research programs were also found to be inaccurate if not properly reviewed by an experienced attorney. For example, Lexus + AI, LexisNexis’s new AI program, was found to be inaccurate 17% of the time. Westlaw’s AI-assisted research program was found to be inaccurate 34% of the time. These numbers are drastic, and attorneys should be mindful before using AI for any legal matters.

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Confidentiality

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Many AI programs require users to upload lengthy documents, which could contain confidential internal company information such as stock information and employee information. Corporate counsel must always make sure that the AI programs they use have proper security measures in place to prevent any cybersecurity attacks. Corporate confidentiality must always be a top priority.

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Data Privacy

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With various security breaches in the last couple of months, corporate enterprises need to vet AI vendors properly to protect any company data. AI should only be allowed to access general company data. Make sure the AI vendor follows proper privacy laws and regulations, including CCPA, GDPR, and other state and local laws that may apply.

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Generally, AI has changed the way that attorneys do their jobs. It seems as though every day there is a different AI program or challenge that may have to be addressed. Although AI could enhance efficiency in the corporate legal field, it should still be monitored very closely to ensure accuracy.

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There are so many new and exciting AI opportunities that may be coming up in the next couple of weeks. Corporate counsel have become very open to new and exciting opportunities, and are always staying on top of AI news to make sure they incorporate the most recent technologies into their practices.

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AI will not likely replace human thought processes and legal work, but it will make decision-making and risk assessment easier. AI is no longer a future dream, it is here to stay. At first, it was meant to tackle everyday automated tasks, but now legal operations are geared towards using AI augmentation for strategic goals and decision-making.