From ChatGPT to Midjourney, AI trading bots, AI art and AI virtual influencers – artificial intelligence seems to be the topic on everyone’s tongue in recent years. As experts and onlookers speculate, the general consensus is that it’s possible that AI’s impact on humanity, technology and business could rival the Industrial Revolution. There is much scepticism and concern over the potentiality for job losses and large scale workforce disruptions, however many technologists and industry leaders see AI as an opportunity for progress, rather than a threat.
Here at No Borders Law Group, it’s important to us that we are not only keeping our finger on the pulse of technological advances, but taking the time to really understand the potential implications with regards to the valuable work we do for our clients.
Until recently, the legal sector remained largely unaffected by this emerging technology. The sentiment is beginning to change however, with the potential for automation and improvements to major processes that many law firms and agents employ.
For example, AI-powered document discovery tools have had a major impact on the legal field. By processing and analysing millions of legal documents, briefs, and case files, an AI-powered machine-learning algorithm could effectively identify the pertinent sources required by a lawyer to build a case, often surpassing human capabilities in this regard.
A real use case example: JPMorgan announced back in 2017 that the company had begun using an AI software called Contract Intelligence, or COiN, which can perform document review tasks in seconds, that took legal aides 360,000 hours.
McKinsey Consultancy estimates that 22% of lawyer tasks and 35% of law clerk duties could be automated.
With news of law firms increasingly embracing artificial intelligence (AI) to streamline tasks like drafting advice, it’s natural to wonder how AI will reshape the legal landscape, particularly in property law.
What is artificial intelligence (AI)?
Artificial intelligence, or AI, refers to computer tasks typically performed by humans. In the legal industry, AI aids in written correspondence, such as drafting advice letters, email communications, and blog articles.
AI excels in tasks where efficiency and data analysis are paramount. In property law, it proves invaluable for:
- Legal Research and Due Diligence: AI swiftly sifts through vast repositories of legal documents, expediting processes like title searches and due diligence.
- Contract Drafting: By analysing templates and legal requirements, AI aids in drafting contracts, leases, and agreements, ensuring accuracy and compliance.
- Property Valuation: AI-powered models leverage market data to estimate property values accurately, guiding buyers, sellers, and investors.
- Lease Management: AI-driven platforms automate lease administration tasks, enhancing efficiency and tenant satisfaction.
- Dispute Resolution: AI-powered tools assist in organising case materials, analysing evidence, and predicting case outcomes, aiding lawyers in property-related disputes.
- Compliance Monitoring: AI monitors regulatory compliance, identifying potential violations and mitigating risks in property transactions.
While AI offers numerous benefits to the legal industry, its misuse can have adverse effects. It’s crucial to recognise AI’s limitations and use it judiciously for fact-finding and information gathering tasks.
Avoiding Misuse of AI
It is important to note that AI best benefits the legal industry when it is used on fact finding and information gathering tasks. AI cannot replace the key skills that a lawyer possesses, interpreting the law and applying to the client’s case. Ultimately, a lawyer’s job utilises creativity and insight. AI currently does not have the ability to use ingenuity and find the best answer out of multiple solutions. This is because AI currently uses algorithms to link facts to a predetermined solution. AI fundamentally lacks the capacity for the deep level of human context, creativity and insight necessary for legal analysis.
Lawyers should not forget their ethical duty to not bring the legal profession into disrepute. If AI is not given the correct instructions by the lawyer when information finding, then AI may use interstate legislation or case law. If the lawyer does not manually verify that AI’s information does correctly apply to their jurisdiction, then the client will be given misleading information which may contribute towards damaging the public’s faith in the legal industry’s competence. Lack of competence leading the legal profession into disrepute may breach a lawyer’s ethical duties and can not only damage the legal profession’s reputation, but lead to disciplinary proceedings brought against the lawyer. AI can be tricky to learn, it will take a few tries to lock down the correct instructions to give to AI so they can provide the right information to lawyers.
Lawyers should use AI to compliment their work, not replace it entirely. AI-generated materials should be reviewed meticulously, and lawyers must interpret the information for application to specific cases.
AI’s Role in Property Law
AI streamlines legal processes, making them more efficient and accessible. Yet, its application should be judicious, focusing on tasks like information retrieval and document drafting.
Ultimately, human lawyers remain essential for applying legal principles to real-world scenarios and exercising judgement in complex matters.
AI offers immense potential to enhance efficiency and decision-making in property law. By leveraging AI responsibly, legal professionals can optimise their workflows and deliver better outcomes for their clients while upholding the integrity and professionalism of the legal profession.
When selecting your next legal partner, opt for NB Property Law – a law firm that stays abreast of the latest technological advancements, ensuring you receive a cutting-edge service from a team that is truly in-the-know.
