ARTIFICIAL INTELLIGENCE AND FUTURE OF LEGAL PROFESSION

Introduction

Due diligence is the most significant task for any law firm or a legal professional. The duty to provide vital information to clients concerning their matters and cases is highly prioritized by many legal professionals. While due diligence can prove out to be vital for assessing risks, it can also structure an agreement or carve out a success merger or acquisition among different entities.

The process of due diligence checks can be exceedingly time consuming and also stand error prone when done manually. Many law firms are rapidly turning to the execution of artificial intelligence in their due diligence tasks. The modern legal AI technology for due diligence assignments can speed up the process and eliminate all the manual inaccuracies and subsequently allow the legal experts to build a better relationship with their clients.

Due diligence checks consist of various stages such as preparation, investigation, categorization of financial statements, contract analysis and other essential information and it can be surely regarded as one of the most tedious tasks in the legal industry. The process of due diligence requires collection of various documents saved across multiple systems, analysis of each document for vital information and data points and finally creation of a due diligence report based on the findings. Legal professionals dedicate several hours and huge amounts of money on each task along with valuable resources which can be used somewhere else for better productivity and efficiency.

Law firms and legal professionals usually face the challenge of time constraints in their general legal operations and activities, and many attorneys and in house counsels are often asked to stay back and work till late hours or hire outside resources to meet many demands in specified time frame. This particular issue may lead to frustration across the firm and decrease the morale of employee. Such a challenge can even lead to inaccuracies which is capable enough to affect the whole deal between entities.

A strong need is felt by many lawyers and legal professionals to cope up with these challenges and issues for curtailment of the errors and inaccuracies done by manual diligence checks.

Application of AI in due diligence tasks

Artificial Intelligence (AI) offers a great solution to these issues. With the technological advances in Artificial Intelligence techniques, a transformation of many businesses conduct can be witnessed. With AI technology, law firms can enable themselves to perform much more tasks in shorter time frame along with ensuring greater precision and accuracy.

AI tools can be specifically used for due diligence and help in automatic search through an array of uncategorized documents and contracts stored throughout an organization’s system and extract vital document data for the purpose of review. Since AI has the potential to work more or less exactly or even better than a human mind, it can augment the organization of various documents remarkably faster than humans. The AI tools assist in saving a company’s precious time which can be used more effectively elsewhere for better productivity.

The AI helps in interpreting and analysis of the data which can save the time of attorneys and in house counsels and eventually enable them to review the data which is available in an easily scannable and comparable format. This process leads to less consumption of time and speed up delivery of analysis reports to the clients.

Many legal professionals are turning to Artificial Intelligence techniques to streamline their due diligence practices for better document sorting and elimination of human errors.

With the assistance of legal AI for the task of due diligence checks, a lawyer or law firm can experience various benefits, such as:

  • Less time consumption
  • Reduction of costs in the process of due diligence task
  • Elimination of manual errors and the need for manual checks
  • More time for the staff to focus on other productive tasks
  • Growth in efficiency of a firm’s legal operations
  • A unique competitive advantage over other market players
  • Upliftment of employees morale
  • Streamlined business processes
Conclusion

The use of AI techniques and tools can crack number of deals to review contracts accurately in almost half of the time taken by humans. It eliminates the natural human errors and limitations some serious risks involved in the task of due diligence which probably become difficult to be quantifiable. AI and machine learning could be effectively deployed for the task of due diligence and reduce the hurdles normally faced by humans.

So it can be concluded that AI is filled with potential to improve the efficiency and effectiveness of due diligence checks undertaken by law firms and various legal professionals. AI tools help to push research-relevant data and content to the top of results, with the help of which legal researchers can quickly review vital information without being over burdened by more consumer-driven content. Though AI is capable of legal compliance and due diligence tasks, it still needs to be assessed strategically in order to reduce risk involved in the due diligent management processes. To take advantage of the benefits of AI tools, it’s pertinent to understand as to what technology must be preferred by a law firm or a legal professional for its better execution and better results.