Artificial intelligence has shown tremendous growth in recent years. The AI industry keeps our minds boggled with the latest upgrades and new scientific experiments with new technologies.
ChatGPT is one such innovation. This OpenAI bot can deliver essays, write computer programs, and answer all your queries. ChatGPT has taken the internet by storm and has sprawled into nearly every industry.
Corporate law space can leverage this automated bot to streamline conventional legal service delivery models. Let’s discuss several use cases of ChatGPT in legal space and ho impacts the legal
Use Cases of ChatGPT in the Legal Industry
ChatGPT is based on OpenAI’s GPT-3 large language model that leverages deep learning to predict language structure and generate text that mimics human conversation and writing.
In the corporate space, users can streamline their transaction processes; improve efficiency and accuracy in due diligence, regulatory compliance, contract review, and analysis, thereby significantly reducing the costs of clients.
In its current form, ChatGPT for law firms has several effective use cases, such as
Research: ChatGPT can be used to conduct legal research and provide accurate information quickly. Lawyers can review past case laws, research relevant legislation, and formulate legal opinions.
Document Drafting: ChatGPT can assist lawyers in generating drafts for contracts, pleadings, briefs, and other legal documents. AI technology will improve these writings by checking grammar and accuracy, and giving suggestions for improvement.
Communication: ChatGPT helps lawyers communicate effectively with clients by answering their queries and assisting them on legal matters. This chatbot can guide clients in accurately accessing legal services.
However, all these use cases might come with risks and limitations, so the outcomes must be thoroughly reviewed by an experienced lawyer to ensure professional deliverables for the clients.
Do ChatGPT Impact the Delivery of Legal Services
With its several great use cases in the corporate law, does this replace lawyers and other positions in this domain?
Though ChatGPT exceptionally performs analytical and legal tasks, it does not boast the same logical mind as a human does. It requires an analytical brain to solve complex legal matters and to find loopholes in the law which this language model doesn’t serve.
However, it can still be used in corporate law to streamline work and improve services. Artificial intelligence helps draft standardized things. It can automate transactions and write contracts and leases, but it might not serve the purpose in litigation.
Elements in the litigation context are individualized. AI can do nothing in a dispute between two parties as their matter differs- the scenario cannot be standardized.
This is where AI may not replace juries who assess the dispute and deal with damages individually. Lawyers are trained to make a significant amount of reasoning, human review, observation, and discretion.
Can ChatGPT Replace Lawyers in Corporate Sector?
Since the entrance of Chat GPT in the legal sector, everyone is wondering whether it will entirely replace human legal services. Some top law firms leverage ChatGPT to streamline legal services such as research, communication, and drafting documents. This raised a concern that ChatGPT will replace some positions in the legal workforce in the future.
In theory, this AI-based chatbot will replace some of the aspects f legal services, but it cannot entirely replace lawyers. Lawyers are trained to provide valuable legal assistance and expertise that AI may be unable to replicate in its current form.
The legal arena does not just intend to provide information, it’s more about building relationships, understanding the diverse needs and preferences of clients, and making strategies that will resonate with your valuable clientele.
Though ChatGPT features some level of personalization based on the data which human feeds, it cannot provide the same level of empathy, creativity, and intuition that is specific to humans.
The challenges of AI in legal services
Besides not boasting the same level of personalization as that of humans, AI in the corporate law industry contains some other concerns as well. For instance;
Quality of Data
One of the major concerns related to the data generated by ChatGPT is its quality. The data on which this chatbot is trained might be subjected to biases, leading to incorrect, misleading, and discriminating responses. Moreover, the response data has limited transparency, which means unverifiable and unreliable responses can be a big problem where accuracy is imperative.
Failure to verify the source of information to create responses can pose a risk to the user of infringing someone else’s intellectual property rights. The technology works on a large amount of textual data retrieved from different sources, the biggest risk is it might collect copyright work leading to legal action against the user.
Without proper governance, AI can pose a serious risk to data privacy and compliance. In the legal arena, significant personal and sensitive information is used for legal matters. If users put this information in the system, their professional duty will be breached.
Legal matters are complicated and demand factual, legal, and financial considerations. You need to disclose specifics as a prompt, which will violate confidentiality and privacy. Conversely, adding generic information only will create overly simple, incomplete, or inaccurate responses that will lead to more risks than benefits.
Future Insight into Legal Use cases of ChatGPT
Currently, ChatGPT offers limited features for lawyers in making reliable deliverables but it is foreseeable to see more and more law firms using AI to automate repetitive tasks. The model would support junior lawyers in preparing initial drafts of legal documents and senior lawyers in supervising, tailoring, reviewing, and settling them for external delivery.
In the M&A space, ChatGPT would probably help create first drafts of due diligence checklists and reports, business transfer agreements, non-disclosure agreements, deal completion documents, and novation/assignment documents.
ECM will harness this technology in formulating first drafts of documents utilized in capital raisings, such as due diligence committee reports and sign-offs, due diligence planning memoranda, and verification documents.
ChatGPT has special use cases in the legal industry, such as researching, drafting, summarizing legal decisions and providing chatbots for lawyers to communicate with clients.
However, accuracy and nuance are paramount in legal space. This AI language model lacks the accuracy of the data source by retrieving data from user-generated content, such as Reddit and Wikipedia. ChatGPT lacks a logical mind and human expertise to deal with individual matters.
Technology and policies are rapidly evolving, indicating that AI won’t take long to incorporate into our daily lives, providing legal firms with greater efficiency, accuracy, and quality.
In a nutshell, ChatGPT has significantly impacted the delivery of legal services. Though challenges need to be addressed, the benefits of ChatGPT in legal services are impressive, implying widespread adoption in the future.