P2P

11 I L T A N E T . O R G I t was only a matter of time before the generative artificial intelligence (Gen AI) revolution came to the legal industry. The advent of Gen AI represents a significant leap forward in the potential for transformative change within law firms and legal departments continue to incorporate advanced language AI capabilities into drafting, research, and data analysis tools. However, it isn't just a matter of deciding which flavor of AI tools to purchase and make available to users. There are a variety of factors that impact success. Before diving headfirst into Gen AI, it's crucial to consider critical questions that can shape its impact and implementation within the legal vertical. Is the legal industry ready? The legal industry's readiness for AI integration is a complex issue. Historically, law firms have not been known for being at the forefront of adopting cutting-edge technology, often lagging in embracing innovations such as email, mobile devices, cloud computing, and other technologies that eventually became commonplace. Courts are frequently even further behind. Lawyers, known for their skepticism, are trained to scrutinize arguments and construct bulletproof cases for their clients, relying on their intelligence and deep subject matter expertise. Given their training and demanding workload, it's understandable that lawyers may be hesitant to embrace AI, especially when it seems to encroach on their core competencies of writing and analysis. Who can blame them for raising an eyebrow at the notion of Gen AI tools that promise to produce a polished case brief or memo with just a simple prompt? Beyond the cultural factors, the harsh economic incentives of law firm life don't necessarily encourage associates to experiment with new tech. The billable hour remains a primary measure of success in law firms, leaving little time or incentive for non-billable activities. In fact, Gen AI can be viewed as a direct threat to traditional law firm economics. If producing work takes less time, that means fewer billable hours—even once humans review the AI- produced work. Of course, one of the most substantial hurdles AI-driven tools face within legal sectors stems from the negative first impression embraced by many legal professionals in response to high-profile incidents where humans used the technology irresponsibly and did not review the AI-created documents for accuracy. Instances of AI-generated court filings with fictional "hallucinated" citations highlight the risks associated with AI. While AI researchers have long known about this limitation - models can confidently articulate complete fabrications when pushed too far - the issue was not well understood in the legal industry until these blunders were featured in the mainstream news. As AI continues to evolve rapidly, the legal industry faces the challenge of learning how to use it and how to use it responsibly. Is your firm ready? It should come as no surprise that different firms and corporate legal departments vary wildly in their preparedness to adopt AI tools and workflows responsibly. On the leading edge are firms and forward-thinking legal teams that have invested strategically in dedicated knowledge management (KM) and innovation programs, legal operations teams, and sophisticated tech competencies like data science and machine learning engineering. These endeavors are not merely about adopting new technologies but fostering a culture of innovation and continuous improvement. For firms that have been diligently investing in these projects over the years, essentially making deposits into their KM future, the time has come for a significant payoff with the advent of Gen AI. At the opposite end of the spectrum are firms and legal departments that have merely been "keeping the lights on"

• Cover