13 Asian Legal Business | January-February 2025 AI is now a daily reality in legal departments, affecting everything from basic operations to major decisions. General counsel must now balance technological advancement with human values and ethical principles, particularly as AI tools become more sophisticated and widespread across organisations. AI’s impact on legal operations GCs traditionally managed legal compliance and risk. Now, they must also understand algorithms, data ethics, and emerging challenges like AI-generated misinformation and privacy concerns. This expanded role requires new technical knowledge alongside traditional legal expertise. AI has transformed contract management. Modern tools can draft, review, and negotiate agreements faster than ever, allowing legal teams to focus on strategy. These same tools help fight cyber threats by detecting unusual patterns and responding to attacks quickly. However, criminals also use AI for sophisticated phishing and security breaches, requiring constant vigilance from legal teams. The cybersecurity landscape grows more complex daily. As AI systems become more powerful, both defenders and attackers gain new capabilities. Legal teams must stay current with these developments to protect their organisations effectively. Regular security audits and updated response protocols are essential. Data privacy remains crucial as AI systems process vast amounts of personal information. The Digital Personal Data Protection Act requires strict data protection measures, and GCs must ensure that their AI systems comply fully. This includes regular privacy assessments, data handling protocols, and user consent mechanisms. Protecting innovation AI helps legal teams spot counterfeit goods and protect trademarks online. The technology can scan millions of listings and identify potential violations quickly. But new generative AI tools create fresh challenges, potentially infringing on existing IP rights. GCs must balance innovation with proper IP protection. Most companies still struggle to implement AI effectively. While isolated uses like contract review show promise, real benefits come from comprehensive integration across organisations. Success requires careful planning, staff training, and regular evaluation of AI systems’ effectiveness. Technology adoption varies significantly across legal departments. Some embrace AI fully, while others remain cautious. Both approaches have merit, but GCs must consider their organisation’s specific needs and capabilities when developing AI strategies. Responsibility and ethics Key questions remain about AI accountability: How can we protect privacy while encouraging innovation? What prevents bias in AI decisions? Who’s responsible when AI makes mistakes? These questions require careful consideration and clear policies. Media and entertainment face particular challenges with AI. Generative AI can create convincing fakes, from deepfake videos to artificial voices. Content regulation through methods like shadow banning raises questions about fairness and transparency. Legal teams must develop new strategies to address these emerging threats. AI reliability poses ongoing concerns. When AI produces false but believable information – also known as “hallucinations” – it creates serious risks. GCs need clear frameworks to manage these limitations and protect their organisations from potential liability. The rise of AI-powered legal tools also raises questions about the future of legal practice. While AI can handle routine tasks efficiently, human judgment remains essential for complex legal decisions. GCs must determine how to combine AI capabilities with human expertise best. The legal profession is changing rapidly with AI. General counsel must guide this transformation, ensuring technology serves justice and fairness. Their role is to harness AI’s benefits while protecting fundamental legal and ethical principles. Success requires balancing innovation with responsibility and maintaining high standards while embracing new capabilities. Looking ahead, AI will continue to reshape legal practice. GCs who understand both the potential and limitations of AI technology will be best positioned to lead their organisations through this transformation. The goal remains consistent: Using technology to enhance, not replace, human legal judgment. The general counsel in the age of AI By Rajiv Malik IN-HOUSE INSIGHTS About the author Rajiv Malik is the legal head of LG Electronics’ production subsidiary in Noida. He has over 20 years of experience, specialising in litigation, contract management, data privacy, antitrust issues, compliance, AI and technology.
RkJQdWJsaXNoZXIy MjA0NzE4Mw==