Artificial Intelligence

Applications of AI in Law Industry

Artificial intelligence has revolutionised various professional domains by making its way through them. It is not only taking the place of paperwork and data handling, but it is also helping the sector become more customer-focused.

With the exception of those tasks that still depend on judgement and experience, technology is gradually taking over the remaining operations. “Over 100,000 jobs in the legal sector have a high chance of being automated in the next twenty years,” according to Deloitte.

The legal profession is starting to see artificial intelligence (AI) as a fundamental component. Since both the field of law and machine learning technology rely on past cases to determine rules to be applied to new scenarios, in a variety of scenarios, this technology is adopting algorithms as well as machine learning to carry out the services that were previously performed by entry-level lawyers.

Application of AI in Law

Contract Review

Contracts are essential to every commercial transaction and are the foundation of our economic system. But the entire mediation process, together with the contract negotiation and settlement process, is a tedious bother.

It is necessary for the attorneys representing both sides to repeatedly review, edit, and trade redlined documents by hand. This process may prove to be laborious, delaying negotiations and making it more difficult to achieve the company’s objectives. Because of the extensive length of the documents and the critical emphasis on minute details, there is also a chance of errors.

There is a great deal of automation possibilities in this entire strained process. For example, a number of businesses have made progress in this direction, such as Lawgeex, Klarity, and Clearlaw. These companies have been developing artificial intelligence (AI) systems that can automatically take in proposed contracts, properly review them using natural language processing (NLP) technology, and determine which parts of the contract are amenable to agreement and which are problematic.

These systems are currently designed with the intention of having a human oversee, review, and provide the ultimate decisions on AI examinations. However, as these technologies develop further and AI programmes get involved in the entire process from beginning to end, this might undoubtedly alter in the future. Artificial Intelligence-powered contract review services are becoming commonplace in the daily operations of numerous large firms, including eBay, SalesForce, and Home Depot.

Contract Analysis

Monitoring and controlling the contract after it has been signed can be difficult.  particularly with large companies that have a large number of counterparties spread across multiple divisions and a large number of outstanding contracts.

NLP-powered solutions that extract and evaluate critical information from a company’s key contracts are beginning to be developed in a variety of ways, making the business commitment nature of the company easier to understand for its stakeholders. Companies creating these platforms include Kira Systems and Seal Software.

With the help of these tools, sales departments will be able to effortlessly keep track of when contracts are up for renewal, giving them the advantage to pursue possibilities and increase income. Additionally, it will make it possible for procurement departments to monitor the specifics of the current agreements and make any corrections.

Finance departments can make sure they are always ready for mergers and acquisitions in the meantime. For compliance purposes, M&A and regulatory departments can foster a comprehensive perspective of a company’s operations.

Litigation Prediction

A few of AI teams have begun to work on machine learning models that use the case’s factual pattern and the majority of pertinent paradigms to forecast the outcome of impending cases. These models are being used by a variety of corporations and law firms in order to expedite settlement negotiations, correctly prepare their litigation strategies, and decrease the number of cases that must be sent to trial.

Legal Research

To help lawyers find relevant case-related content, major online legal data sources like LexisNexis and Practical Law have been improving their search algorithms on a regular basis. Furthermore, some AI tools—like Lex Machina—even assist attorneys in developing a legal strategy based on prior outcomes in similar instances.

Predictive Coding

This is a cutting-edge application of AI that the legal sector is now using. This provides a technologically aided evaluation that helps expedite the e-disclosure process.

Based on the last training session, where the algorithm was modified by the lawyer, the predictive coding software employs a search algorithm to classify documents based on their relevancy. After that, a large number of papers are subjected to the software in order to determine which one is best suited for the disclosure’s goal.


Bots have the potential to be very useful in giving the general public quick access to services and in providing legal assistance.  In essence, a lawyer bot is software designed to execute automated duties that are typically completed by lawyers. These bots are helpful in increasing productivity and providing an improved experience for clients by allowing them to self-serve online.

AI chatbots can also be used for a variety of additional functions, such as creating customer bills, automating the process of drafting papers quickly, and forecasting case outcomes.

Accelerate Due Diligence

One more time-consuming task that legal practitioners undertake is the due diligence procedure, which involves finding background information. Time can be saved and the process accelerated with the use of AI-powered platforms.

Speeding up the due diligence procedure would be very beneficial because it would help confirm current numbers and information from previous cases. Humans typically find the due diligence process tedious, but artificial intelligence might significantly increase accuracy.

Although artificial intelligence has received a lot of attention in the legal sector, the technology is still in its early stages, which means there are still opportunities and difficulties to be faced.

The magnitude of the legal market presents a strong chance to create value. In the near future, rapidly developing technologies like artificial intelligence and natural language processing (NLP) could open up a lot of doors and completely transform and revitalise the legal sector.


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