HomeLegal AdviceThe Tech-driven Inflection Point for the Global Legal Industry: Opinion

The Tech-driven Inflection Point for the Global Legal Industry: Opinion

In the ever-evolving world of law, technology is poised to become a defining force. The traditional image of the legal industry may suggest resistance to change, but in reality, the sector has been experimenting with technology for decades. The late 1980s saw the introduction of the Latent Damage Project, the world’s first commercial artificial intelligence (AI) system for lawyers. Subsequently, the ’90s witnessed the advent of online dispute resolution (ODR) projects at US universities.

The pivotal turning point came in 2020 when the COVID-19 pandemic compelled legal cases to go digital. This catapulted technology to the forefront of dispute resolution practices, emphasising the legal fraternity’s need to embrace technology to meet modern demands.

As technology continues to disrupt and create new industries, it is imperative for dispute resolution practitioners to stay ahead of the curve. The legal industry now grapples with transactions and agreements that exist solely in cyberspace, necessitating the adoption of technology to ensure efficient and effective dispute resolution.

Technology offers various advantages in modern dispute resolution. It streamlines administrative work, and many law firms employ internal online case management systems for better organisation and storage of case details. Additionally, e-platforms developed by arbitral institutions and courts simplify document filing and retention. Online communication platforms like Skype and Zoom facilitate cross-border dispute resolution, while digital signatures on legally binding documents have become commonplace.

Furthermore, AI-powered tools, including knowledge management solutions and electronic discovery (e-discovery) solutions, enhance the speed and accuracy of legal research and analysis. They reduce the man-hours needed for document analysis and organisation, leading to quicker and more effective negotiations.

To prevent disputes, technology can be harnessed to facilitate alternative dispute resolution (ADR) methods. Online dispute resolution (ODR) systems offer increased flexibility and convenience. In some instances, AI-powered ODR tools have been remarkably efficient in resolving disputes quickly and amicably.

However, while technology holds immense potential, there are challenges to overcome. Generative AI, such as the AI chatbot ChatGPT, offers significant capabilities but is not without issues. It can present erroneous or fictional findings as fact, raising concerns about its reliability in legal settings.

Ethical considerations also loom large, as AI systems like ChatGPT may perpetuate biases present in their training data. Questions about privacy and data manipulation add complexity to the use of AI in law.

Despite these challenges, it is clear that technology will continue to shape the legal landscape. For law firms to remain competitive, embracing technology as best practice is no longer an option but a necessity. As the digital era unfolds, the legal industry must adapt, innovate, and leverage technology to stay ahead in the ever-changing world of law. Just as laws evolve to respond to the world’s changes, legal practitioners must evolve as well to achieve ideal outcomes and represent their clients effectively in the digital age.

Monika Shanmugam