6 ASIAN LEGAL BUSINESS – INDIA E-MAGAZINE JANUARY-FEBRUARY 2024 Generative AI has arrived, and law might never be the same. A 2023 study by New Zealand-based AI solutions provider Onit compared the ability of large language models (LLMs), like ChatGPT, to review contracts with that of junior lawyers and legal process outsourcers. A few LLMs, including GPT4-1106 and Claude 2.0 identified contract issues with almost the same accuracy as LPOs and junior lawyers. Remarkably, while a junior lawyer took on average 56 minutes and an LPO 200 minutes to review the contract, LLMs completed the task in a matter of seconds. Equally notable is the stark difference in the average cost per document review. A junior lawyer would cost $74.26 per contract, an LPO $36.85, while LLM would cost under a dollar per contract. These are not just statistics; they signal a seismic shift in legal practice. The growth of specialised generative AI models is poised to become a game changer for law firms in terms of productivity and turnaround times for contract review. But the buck doesn’t stop there. Generative AI offers benefits in terms of increased capacity and scalability, improved and more expansive information analysis to factor into legal strategy and advice, personalised client advice and competitive intelligence, say Trilegal partner Nikhil Narendran. “It also provides more touchpoints for engaging with clients, such as offering chatbots and legal services platforms to provide legal advice at the first level,” Narendran says. “Ultimately, adoption of AI plays a significant role in making our professionals and firm future-ready and moving them up the value chain.” Indeed, the industry view is that the use of AI for automating repetitive work, frees up lawyers to allow them to focus on more crucial functions such as strategybuilding and team management. “It also gives time to start nurturing client relationships – something midlevel lawyers are unable to focus on and is becoming necessary in today’s time for them to deliver their true potential once they rise as a partner,” says Yavanika Shah, a practice development professional at IndusLaw. “I also think that law firms who adopt advanced technology will be able to retain top legal talent, especially from the younger generation who are comfortable with technology,” adds Shah, who recently authored a chapter in a book titled ‘Legal Operations in the Age of AI and Data.’ ADOPTION IN INDIA Leading law firms are responding to demands for innovation from clients to integrate generative AI into their workflows. Trilegal has been one of the firms leading the way on Gen AI adoption in India. The firm has constituted a Digital Innovation Group (DIG) as part of its efforts to render the law firm futureready to incorporate AI-based solutions, including generative AI, to bring about greater value to clients and the industry at large, Narendran says. “Initiatives in the process of being implemented include AI tools enabling better business and knowledge management by providing data insights and generating key driving points for various areas, AI-based dashboards for partners to obtain reports and actionable insights, AI-systems for research, drafting, due diligence and document management, as well as automation of administrative aspects such as resource planning, generation of templates and draft responses and preliminary briefs, and related solutions to improve operational efficiencies,” he adds. Other firms are not far behind. Nishith Desai Associates has developed an in-house Gen AI-based chatbot called NaiDA. “Built on the advanced GPT-4 model from OpenAI and hosted on AWS servers, NaiDA is designed to empower our lawyers with intelligent insights in their daily workflows,” the firm says. Meanwhile, Cyril Amarchand Mangaldas started dabbling in machinelearning models as early as 2017, when it signed an agreement with Canada-based tech company Kira Systems to launch a customised tool to assist in contract review. LAW IN THE TIME OF ROBOTS Even as generative AI sweeps the globe, Indian law firms have been slow to embrace it. Those that have done, though, are encountering lower costs and shorter turnaround times. But as with any new technology, it’s critical that firms move carefully. BY NIMITT DIXIT Image: Andrey_Popov/Shutterstock.com
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