5 Common AI Legal Issues to Watch Out For

Machine learning and generative AI tools are developing fast. However, concerns about AI legal issues are arising just as rapidly.

As generative AI systems become mainstays in many legal workflows, mitigating AI legal risks is now a top priority for law firms and legal professionals that use generative AI, machine learning, and large language models.

In this article, we’ll list the most common legal issues surrounding AI models so you can do whatever it takes to avoid them.

Why Law Firms Are Using AI Tools

Why are law firms using AI tools in the first place? Artificial intelligence is not a new concept, but as it expands its capabilities to handle more time-consuming legal tasks, more and more law firms are riding the wave.

For example, AI can:

Zip through tasks like sorting documents and doing legal research way faster than humans. This means lawyers can spend less time on the boring stuff and more on the complex legal work.
Cut down on the hours that need to be paid for, which helps keep costs down. Cheaper operations mean firms can either boost profits or pass savings onto their clients.
Spot patterns and trends in huge piles of data—stuff that might slip past a human, which can help lawyers make better decisions based on solid data.
Handle basic customer service tasks like answering questions, booking appointments, and providing updates around the clock.
Handle the extra workload without needing to hire more staff.

5 Most Common Legal Issues Surrounding AI

AI systems have integrated and continue to integrate into many aspects of our lives. In the law industry, however, the use of AI has led to a complex web of legal risks and undefined rules.

Does this mean you should scrap your AI system altogether? Not exactly, but there are several key legal issues that every law firm needs to be wary of:

1. Poor Accuracy

An AI system is only as good as the data it learns from. If the data is bad, incomplete, or biased, then the AI’s outputs will probably be off the mark too. This can lead to legal headaches, especially if decisions made based on these outputs adversely affect individuals or result in discriminatory outcomes.

Imagine a law firm using AI to give clients advice about how likely they are to win in court. The AI tool works by analyzing tons of past cases, looking at what decisions judges made, and the arguments that played well.

However, let’s say the AI’s data isn’t up-to-date—it’s missing recent cases or doesn’t include information from certain areas. If the AI’s prediction ends up being way off because of this, and a client follows that advice and loses their case, they might end up losing time, money, or a crucial legal opportunity.

All that said, law firms have to be sure that the data feeding their AI is top-notch and up-to-date to avoid these pitfalls. Sadly, it’s not as easy as it sounds. They also have to make sure that the developer is using reliable training data for their AI models.

Plus, AI systems need regular check-ups to stay accurate. Legal standards shift, new data comes in, and AI systems need to adapt to these changes. Law firms should have processes in place to keep testing and updating their AI tools to make sure they stay reliable and effective under the latest legal conditions.

2. Intellectual Property Issues

When it comes to AI and intellectual property, law firms face several unique challenges. AI can create, manipulate, and interact with IP in ways that traditional legal frameworks are still trying to fully understand and regulate.

Who Owns AI-Generated Content?

One of the biggest questions is who owns the intellectual property created by AI systems. For instance, if a generative AI program drafts a contract or creates a legal document, who holds the copyright—the law firm, the AI developer, or the AI itself?

Currently, most jurisdictions require a human author for copyright protection, which complicates matters when AI is doing much of the creation.

Protecting Law Firm IP

Law firms also need to think about protecting their own intellectual property rights when they use AI tools. This includes proprietary data, legal strategies, and custom-developed software.

When using third-party AI solutions, firms must ensure that their IP rights are safeguarded in any licensing agreements. They also need to prevent unauthorized use of their AI-driven tools and content.

Infringement Risks

AI systems can process vast amounts of data from various sources, and there’s a risk they might use content that is copyrighted by others without permission.

Law firms need to implement safeguards to ensure that their AI tools do not inadvertently infringe on someone else’s IP rights. This might include using only properly licensed data or implementing checks to make sure that any third-party content is used legally.

3. Failure to Protect Personal and Confidential Data

AI technology, while incredibly useful, brings a bunch of privacy and data protection issues that can quickly turn into legal implications. Let’s also not forget that law firms have a responsibility to protect personal data.

Here’s a look at how AI can stir up privacy and legal issues:

Collecting Too Much Information

AI loves data—the more, the better for its algorithms. But collecting tons of data, especially personal stuff, can be problematic if it’s done without people’s clear consent or breaks data protection laws. Also, AI can allow a level of watching and tracking that goes way beyond traditional methods.

This can raise big red flags about how much companies know about individuals and whether people even know they’re being watched.

Data Leaks

With more AI use comes a higher risk of data breaches. AI systems can be hacker targets and might even be the weakest link in cybersecurity if they’re not built with security as a priority.

Legal trouble pops up when these breaches involve losing or exposing personal data, which can lead to potentially hefty fines under laws like the GDPR.

Unintentional Discrimination

AI can also show biases in processing data and lead to unfair outcomes.

Say an AI system used for hiring is trained on biased historical data—it might keep favoring certain groups over others. This isn’t just a bad look—it’s legally risky, as it could violate anti-discrimination laws. Making sure AI systems are fair and unbiased is crucial, not just technically but legally, too.

Keeping Things Clear

Privacy laws often demand clarity about how personal data is used, but AI can make this tricky. AI algorithms can be like black boxes, hard to explain even for those who create them, and complicating efforts to be transparent as required by law.

Plus, figuring out who’s responsible when AI decisions cause harm or invade privacy can be a real puzzle, making accountability a serious concern.

Navigating Global Laws

AI doesn’t stop at borders—it often handles data from different places with different privacy standards. This global operation can lead to tricky legal challenges as companies need to navigate a complex mix of privacy and data protection laws.

For example, sending personal data from the EU to less strict countries can break GDPR rules unless you’ve got the right safeguards in place.

4. Open-Source License Compliance Problems

Open-source software is great because it’s freely available, but it comes with rules on how you can use, change, and share it.

These rules are laid out in licenses, which can range from super lenient (like MIT or Apache licenses) that pretty much let you do whatever you want, to stricter ones (like GPL) that have more conditions, like requiring you to share your modifications under the same terms.

Law firms need to really understand these licenses to make sure they’re using open-source software the right way. Why? Not following these licenses can lead to lawsuits or having to make your own software code public if it includes open-source code under a strict license. This is especially risky for law firms that tweak open-source software for their own tools.

5. Tort Liability

Tort liability is about holding someone responsible for harm caused to another person. When it comes to AI, if a system makes a biased decision that ends up harming someone, this could lead to a tort claim.

AI bias happens when an algorithm unfairly favors or discriminates against certain groups because of skewed data inputs, mistakes in the programming, or other factors. This kind of bias can result in serious issues, like unfair hiring decisions, biased policing, or unequal loan approvals.

Who’s to Blame When AI Messes Up?

Figuring out who has legal liability for AI errors is tricky. If an AI system delivers poor legal advice or messes up data analysis, is it the fault of the AI’s developers, the law firm using it, or the people who supplied the data?

To reduce their legal risk, law firms often sort this out with detailed contracts that lay out who’s liable if the AI doesn’t perform as expected.

What Risks Do Law Firms Face When Using AI Systems?

When law firms integrate AI systems into their operations, they open themselves up to a new set of risks. Understanding these risks is important for law firms to manage them effectively and harness the benefits of AI without facing setbacks.

Overdependence on AI: Relying too much on AI for decision-making can lead to issues if the AI provides flawed advice or analyses, which can potentially lead to poor outcomes for clients and legal malpractice claims.
Data security vulnerabilities: AI systems handle a lot of sensitive data. Any weakness in the system can lead to data breaches, risking exposure of confidential client information, and violations of data protection laws like GDPR.
Compliance challenges: Ensuring that AI systems comply with all relevant legal and regulatory frameworks is complex. Non-compliance can lead to fines, legal disputes, and damage to the firm’s credibility.
Bias and discrimination: If AI tools are built on biased data sets or flawed algorithms, they can produce discriminatory outcomes. This can lead to legal challenges and harm the firm’s reputation and client relationships.
Intellectual property issues: Using AI can raise questions about the ownership of the generated content and the software itself, which can potentially lead to IP disputes.
Lack of transparency: AI’s decision-making process can be a “black box,” making it hard to explain how conclusions were reached. This lack of transparency can be problematic in legal settings where justification of methods and findings is required.
Client trust and confidentiality: AI tools must be designed to maintain strict confidentiality of client information. Any failure in this area can erode client trust and result in legal consequences.

Use a Generative AI Tool You Can Trust

Briefpoint.ai was designed with proper training and ethical considerations in mind to reduce the risks that come with generative AI. While due diligence is still a must for our users, Briefpoint uses strict security measures to protect data privacy:

In-Transit and At-Rest Encryption
Automatic Backups and Redundant Servers
Secure Development Practices
Payment and Login Security Measures

Let Briefpoint Help You Save Money Without the AI Risks

Discovery responses cost firms $23,240, per year, per attorney. $23,240 estimate assumes an associate attorney salary of $150,000 (including benefits – or $83 an hour), 20 cases per year/per associate, 4 discovery sets per case, 30 questions per set, 3.5 hours spent responding to each set, and 1800 hours of billable hours per year.

Under these assumptions, you save $20,477 using Briefpoint, per year, per attorney.

Test Briefpoint yourself by scheduling a demo here.

FAQs About AI Legal Issues

How do law firms keep their AI tools from messing up?

It’s all about staying sharp and up-to-date. Law firms need to keep their AI systems well-trained on the latest laws and supervised by experts to avoid any costly mistakes.

Is there a risk of AI tools being biased?

Yes, it can happen. AI tools learn from data, and if that data is biased, the AI’s decisions might be too. Firms have to check the data and the AI’s decisions for any unfair biases regularly.

Can using AI save law firms money?

Absolutely. By automating tedious work like sifting through documents, AI can save a lot of time, and that means saving money.

What should law firms do if their AI tool leaks sensitive data?

First thing, stop the leak and figure out what went wrong. Then, they need to tell their clients about the breach and sort out any fallout. Keeping their systems secure to avoid such leaks is a must.

Will AI eventually make lawyers obsolete?

Not likely. While AI is great for handling routine tasks and crunching numbers, it can’t replace the human judgment and personal touch that lawyers bring to the table, especially in negotiations or in court.

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5 Stand-Out Benefits of Legal Document Automation Software

Document automation has been around since the 1990s, but it wasn’t until the revolution of artificial intelligence that it made significant waves in the legal industry.

In today’s law firms, document automation software has become a staple in many legal processes, from preparing litigation documents to drafting contracts.

However, law firms are known to use traditional workflows – so much so that they risk losing the competitive edge that more innovative firms benefit from.

If you’re not sure if legal document automation software is the right investment for you, let’s explore some of the best ways it can benefit your practice.

What is Legal Document Automation?

Legal document automation simplifies the drafting and management of legal documents through technology or, more specifically, artificial intelligence, natural language processing (NLP), and machine learning.

It starts with customizable templates that act as a base for every document you need. These templates include all the standard language and formats, and you can adjust them according to the specifics of each case or client.

The core feature of this system is that it can automatically insert dynamic content, like specific clauses or client details, which cuts down on manual data entry and the chance of making mistakes.

Other document automation tools like Briefpoint let you upload an existing document and draft a new document from other existing documents. For example, Briefpoint’s machine learning will analyze the information on your document and extract as much information as it can, such as court name, case number, and request type.

Then, the AI system will create a caption and fill out routine data on your document. At this point, you can insert your objections to each request and interrogatory before finishing up on Word.

Why Should Law Firms Invest in Legal Document Automation Software?

Automated legal document generation can be a valuable investment for law firms of all sizes. However, the cost of such a tool can add up over time, especially when you already have an existing stack of tools you pay for.

So, why should you invest in automation software to create documents when you can do it on your own?

Here are a few compelling reasons why adopting document automation should be your next investment:

1. Increases Efficiency

The core feature of legal document automation is its ability to rapidly produce documents using pre-set templates and generative artificial intelligence. This automated process cuts down the time lawyers and paralegals spend drafting the document from scratch.

For instance, legal professionals can generate standard contracts, agreements, or legal notices in minutes instead of hours. Increased speed of document assembly means legal staff can turn their attention to high-value work or handle more cases without additional workload, which increases the firm’s overall productivity.

Increased efficiency can also make way for better time management and, in turn, a more positive work-life balance for busy legal professionals. In most cases, a better work-life balance creates happier and more productive employees, so it’s a win-win.

2. Saves Time and Money

Increased efficiency goes hand in hand with cost savings. For one, automating routine documentation tasks reduces the need for extensive labor to manage these processes. This can lead to reduced hours for existing staff or the ability to manage with fewer staff members.

Additionally, automated document creation decreases the need for overtime costs when facing tight deadlines since documents can be prepared and reviewed faster.

Plus, there’s less need to outsource these jobs to external specialists or services. Keeping this work in-house saves on outsourcing fees and also gives the firm better control over the timeline and quality of the output.

3. Tracks Important Information

Automation software stores all documents in one centralized location so that it is easy for anyone in the firm to access necessary files from anywhere, at any time.

Centralized document storage is particularly useful for firms with multiple offices or remote workers as it eliminates the need for physical storage and reduces the risk of losing important paperwork.

It also gives you easy access to frequently used documents, so you won’t have to search for a specific document every time you need it.

Legal document automation systems also allow quick retrieval of documents and data. This can be crucial during tight deadlines or when you need to change matter-specific documents.

4. Minimizes Mistakes and Liability Exposure

Human error is often unavoidable in manual processes, which is another reason why document automation has become a must in the legal industry.

Since everything is formatted the same way every time, you avoid the little slip-ups that can lead to big problems. Also, the software stays up-to-date with the latest laws and regulations to make sure that all documents comply with current legal standards.

Plus, some document automation tools create audit trails. Every time someone edits, accesses, or reviews a document, the software keeps a log. This is highly useful if there’s ever a dispute or a compliance check because you have a clear record of what went down.

Some smarter systems even use artificial intelligence to spot potential errors before they become an issue, giving you a chance to preemptively fix them.

5. Improves the Overall Client Experience

Document automation software makes interactions with legal services more efficient, reliable, and satisfying for clients in several ways.

First, automation speeds up the document preparation process. Clients no longer need to wait days or weeks for their documents to be drafted, reviewed, and revised.

A rapid turnaround is particularly appreciated in scenarios where time-sensitive legal issues are involved, which helps clients feel prioritized and well-served.

Plus, the accuracy of automated documents means that clients receive error-free paperwork. This accuracy helps in building trust, as clients can be confident that their legal documents are handled professionally and with attention to detail. It also reduces the back-and-forth typically required to correct errors.

Drafting Documents Doesn’t Have to Be Tedious

Preparing contracts, appeals, motions, pleadings, discovery documents, and other legal documents costs legal professionals thousands of hours every year.

Legal teams draft and edit countless documents, typically through modifying a similar document and copy-pasting relevant information. This manual process might have worked well before, but it has now become an outdated and inefficient practice.

Today, legal document automation software is an indispensable tool in the legal profession. It helps law firms save hundreds—if not thousands—of hours on document generation.

Don’t let your practice fall behind. With Briefpoint, you can automate one of the most tedious administrative tasks of all: discovery document production. Let Briefpoint’s machine learning and generative artificial intelligence help you draft discovery request and response documents in minutes.

Unlock the Benefits of Legal Document Automation with Briefpoint

Under these assumptions, you save $20,477 using Briefpoint, per year, per attorney.

Test Briefpoint yourself by scheduling a demo here.

FAQs About Legal Document Automation

Who can benefit from using legal document automation software?

Law firms of all sizes and any business that needs frequent legal documentation can benefit from using this software. It’s particularly useful for entities that handle a high volume of contracts, agreements, or any legal paperwork that follows standard formats.

Can legal document automation software integrate with other tools used by law firms?

Yes, many legal document automation tools are designed to integrate with other software commonly used in law firms. These include case management systems, customer relationship management (CRM) systems, and billing software.

How does legal document automation software impact client confidentiality and data security?

These platforms are built with strong security features designed to protect sensitive information. They often include encryption, secure access controls, and compliance with legal standards such as GDPR or HIPAA, depending on the jurisdiction or practice area.

What kind of support do firms typically need to implement legal document automation?

Implementing legal document automation usually requires initial setup support to customize templates and integrate the software with existing systems. Vendors often provide comprehensive training for staff to ensure they are proficient in using the software. Ongoing technical support is also provided to help resolve any issues that might arise during day-to-day operations.

What Are the Costs of Legal Drafting Software?

The primary benefit of using legal document drafting software is pretty clear. With this kind of tool, the drafting process is simpler, faster, and ultimately less of a bottleneck than when done manually.

As a result, lawyers spend less time creating documents from scratch and more time on higher-value work. The average cost of this software starts at $80 and can go up to more than $1,500 per month.

But will your investment lead to returns?

Let’s dig into the benefits of legal document drafting software, its average costs, and the best legal drafting software to use for the most tedious work.

What is Legal Drafting Software?

Legal drafting software is designed to help lawyers and other legal professionals create, format, and manage documents. Essentially, this tool automates a significant chunk of the document creation process that legal professionals typically do manually.

Drafting software tools have varying features depending on their niche. However, there are several common capabilities you can find in most tools, such as:

Template libraries: These are collections of pre-designed document templates for various legal forms such as contracts, wills, and leases. These templates comply with legal standards and you can adjust them based on your specific needs.
Automation tools: Many legal drafting programs offer document automation capabilities that can automatically fill in specific information in documents based on predefined rules. Automation speeds up the drafting process and helps maintain consistency and accuracy across multiple documents.
Clause libraries: These are databases of standard legal clauses that users can insert into documents as necessary. It saves a ton of time and helps make sure the language you use holds up legally.

How Does Legal Document Drafting Software Benefit Lawyers?

Legal document drafting software has been and continues to be a revolutionary tool in the legal industry–and that’s not an overstatement. Here’s why this kind of document automation has become a necessity in the field rather than a nice-to-have:

Maximizes Efficiency

Automated document generation cuts down a lot of time on creating legal documents. With ready-to-go templates for all sorts of forms and filings, lawyers can quickly tweak what they need instead of starting from zero every time.

Plus, automation fills in the usual client details, speeding up the process even more. This means lawyers can take on more clients or spend extra time diving deep into complex cases, all without sacrificing quality.

Minimizes Human Error

Keeping up with the latest laws and regulations is a non-negotiable in legal practice, and this kind of software software helps by making sure the templates and clauses are always updated.

It’s similar to having a built-in checker that flags potential mistakes or outdated info, which is a lifesaver for maintaining high standards and safeguarding the lawyer’s credibility.

Increases Consistency

When every document a law firm produces looks and reads the same, it speaks volumes about professionalism.

Legal drafting software makes sure all documents are formatted in a uniform style, which not only looks sharp but also makes them easier for everyone to understand and review.

Reduces Costs

Drafting documents often requires a lot of time and labor when done manually. Legal drafting software aims to address this exact issue by allowing legal professionals to create documents in minutes instead of hours (or even days).

Fewer hours needed for routine tasks means lower overhead costs. In turn, law firms can shift funds to other critical areas like case research or client relations.

Plus, document collaboration and drafting online eliminates the need for paper documents. While it may not seem like much, the savings you get by switching to digital documents add up over time.

Improves Collaboration

Modern legal drafting tools come with high-quality collaboration features that let team members edit documents together in real-time, even from different locations.

This makes editing drafts and getting approvals smoother and makes sure that everyone’s on the same page, quite literally.

Secures Digital Documents

In the legal world, keeping client information secure is an absolute must. The best legal drafting software has tight security measures in place, like encrypted storage and controlled access, to keep sensitive data locked down.

Information security is important not just for client trust but also for staying in line with strict data protection laws.

How Much Does Legal Drafting Software Cost?

The cost of legal drafting software can vary quite a bit, depending on what you’re looking for in terms of features and scalability. Here’s a quick overview to give you a better idea of what to expect in terms of pricing:

Subscription-Based Models

Most legal drafting software providers opt for a subscription-based model, where you pay a monthly or annual fee.

For basic features, prices might start as low as $90 per user per month and can go up to $1,500 or more for premium features. This model is ideal because it often includes regular updates and customer support.

For example, Briefpoint.ai will let you generate an unlimited number of discovery response and request documents for only $89 per month (one account, when billed annually). Briefpoint will also let you add an additional account for your paralegal for free when billed annually.

Per-Document Pricing

Some providers charge based on the number of documents you generate. This can be cost-effective for smaller firms or solo practitioners who don’t handle a high volume of documents regularly.

Prices per document can range widely based on the complexity and customization of the templates.

Briefpoint’s per-document pricing starts at $55 per document with no minimums. It’s a great option if you only have to draft a few discovery documents a year.

Flat-Rate Licenses

A few software options may offer a flat-rate license where you make a one-time payment and own the software outright. This can be a significant upfront cost, but it eliminates ongoing subscription fees.

Still, updates and support might require additional payments.

Free Versions

There are also some basic versions or tools that might be available for free, which can be suitable for lawyers just starting out or those with very minimal needs.

However, take note that these free versions usually have limited features and capabilities.

Additional Costs

Beyond the base price of the software, there might be extra costs for things like advanced customization, additional training, or integration with other systems (like case management or billing software).

Why Choose Briefpoint?

Drafting software features span across various legal niches. There’s legal contract drafting software for drafting written agreements, intellectual property tools for firms specializing in IP law, and even litigation drafting software for pleadings.

In the field of discovery, however, Briefpoint is the best tool. This drafting software gives you:

Comprehensive features

Briefpoint is packed with all the tools you’d want for drafting legal documents. Whether it’s a vast library of templates or customizable clauses for specific cases, it’s all there to make your document drafting quicker and more efficient.

User-friendly interface

Nobody likes a steep learning curve, and with Briefpoint, you won’t have to worry about that. Its interface is clear and straightforward, making it easy for anyone in your firm to pick up and use.

Solid support and training

If you ever hit a snag, Briefpoint has your back with excellent customer support and plenty of training resources like tutorials and webinars. This means you can get the most out of the software without too much trouble.

Competitive pricing

When it comes to cost, Briefpoint offers some pretty attractive options that make it accessible for smaller firms without sacrificing the features that larger firms would need. You can get a great return on your investment, which typically manifests in better legal services.

Regular updates

The legal field is always changing, and so is Briefpoint. Regular software updates include new features and ensure everything complies with the latest legal standards.

Let Briefpoint Generate Your Legal Documents

Under these assumptions, you save $20,477 using Briefpoint, per year, per attorney.

Test Briefpoint yourself by scheduling a demo here.

FAQs About Legal Document Drafting Software

Can legal drafting software replace lawyers?

No, it’s meant to complement lawyers by handling routine tasks, allowing them to focus on more complex legal issues.

Is legal drafting software secure?

Yes, reputable providers implement strong security measures to protect sensitive information. However, law firms still need to do their due diligence to make sure their legal document management software is up to par with security standards.

Can I customize the software to fit my specific needs?

Absolutely. Many legal drafting software solutions offer customizable features to match your firm’s specific requirements. Most tools are also scalable, so you can expand their capabilities as your business grows.