Generative AI is reshaping the landscape of legal analytics, making tasks like fee structuring and in-depth research more efficient than ever. According to a 2023 report by Goldman Sachs, nearly half of legal tasks—around 44%—could be automated with AI, offering law firms a chance to boost efficiency and cut costs.
In the past, legal analytics relied heavily on structured data and preset models, which meant a lot of manual effort to identify patterns and extract insights. As Stephanie Corey, CEO of UpLevel Ops, points out, while predictive AI has outpaced traditional analytics, it still demands specific algorithms and a good deal of customization.
Enter generative AI, which represents a major leap forward. It can handle unstructured data like texts, emails, voicemails, and videos, offering a broader understanding of legal issues. This technology sharpens the accuracy of outcome predictions, uncovering risks and opportunities that might be hidden by conventional methods. Nicole Black from AffiniPay highlights that generative AI can delve deeply into case-specific data, enhancing prediction accuracy and risk management.
Corey suggests using generative AI across various legal roles. For instance, it can analyze past cases to develop new litigation strategies, tailor solutions, and even predict courtroom decisions by modeling judge-specific GPTs. “By simulating the decision-making patterns of particular judges,” Corey explains, “firms can better predict judicial rulings and tailor their arguments accordingly.”
For those concerned about AI’s reliability, there’s reassurance in its ability to monitor compliance. Generative AI keeps up with regulatory updates, ensuring firms stay aligned with the latest standards, reducing legal risks, and protecting against violations.
Kevin Doran, a consultant at Legal Tech Chicago, acknowledges some firms’ hesitation but argues that the savings in workforce costs alone make AI adoption worthwhile. Dennis Kennedy from Michigan State University uses an expert prompt approach, creating AI personas to guide analytics, ultimately enhancing cost assessment and service innovation.
Generative AI doesn’t just help predict litigation outcomes and pricing; it also suggests new practice areas based on market trends, helping firms retain clients with innovative, reliable services. “Additionally,” Corey concludes, “by improving the accuracy of outcome predictions, generative AI reduces the likelihood of legal missteps.”
