The New Era of Law: How Can the Benefits of Artificial Intelligence Be Harnessed With a Minimum of Risk in Romania?

Anda Rojanschi and Romana Petre of D&B David si Baias, a connected law firm of PwC Legal, Romania, write about the benefits and risks of AI in the legal industry.

Published on 15 March 2024
Anda Rojanschi of PwC Legal
Anda Rojanschi
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AI is poised to transform the legal profession. While there is a long history of technological change in the way lawyers do their work, the recent introduction of artificial intelligence systems based on large language models, such as GPT-3 and GPT-4, marks the first time that widely available technology can perform sophisticated writing and research tasks with a competence that previously required highly trained individuals.

Artificial intelligence is already changing the legal landscape, and many professionals in the field have expressed concerns about how AI will directly impact their jobs. Although the legal industry is notoriously reluctant to adopt new technologies and practices, the incorporation of artificial intelligence is inevitable and only a matter of time. It is better to be at the forefront of this new frontier than to try to adapt once AI has increased the speed and efficiency of competing law firms.

Law firms that effectively use emerging AI technologies will likely be able to provide services in less time, with greater efficiency, and with a greater likelihood of favourable outcomes in litigation. We can only assume that law firms that fail to harness the power of AI will not be able to remain cost-competitive, and their ability to attract and retain talent could be undermined.

Where are we now?

The truth is that we are living in an era of unprecedented technological evolution, and what we have seen so far is just the beginning.

Today, technology enables us to perform tasks that were previously impossible, such as quickly analysing large contract pages, using software to generate model contracts, using chatbots or automatic transcription programs for minutes of video calls, participating in videoconferencing for court hearings, and using interactive platforms to monitor the status of case resolutions. Many technological tools already exist and are being used by legal professionals around the world, such as the Dubai government’s Smart Judge rental disputes centre, the French platform that estimates the chances of success in litigation, the Polish app that automates small claims litigation, the Brazilian technology that provides the judge with a recommendation on the solution to be given, and the UK’s robot court clerk.

Artificial intelligence still raises many questions and should be used with caution

A strong warning must be given, especially with regard to the hallucinations of these AI tools, which may produce incorrect, irrelevant and fictitious citations and statutes, and may even overlook basic legal rules. Even more dangerous is the conviction and clarity with which the answers are delivered, which could mislead even a legal professional.

For example, two US lawyers and their firm were fined USD5,000 by a Manhattan judge for presenting fictitious case law invented by ChatGPT in court.

The sexist and discriminatory behaviour of artificial intelligence also poses a risk to the financial system, warns the Bank of England.

Another strong reason to think twice about the use of AI in the justice system is that judges, lawyers and society may become overly reliant on these algorithms. While humans retain ultimate decision-making authority, it is not uncommon for them to become overly reliant on technology-based recommendations, a phenomenon known as automation bias. With AI, this trust may be particularly unrealistic, as the actual capabilities of the technology may not be as “intelligent” as they appear.

Artificial intelligence raises a number of questions that have yet to be answered, especially in the context of the future of the legal profession within a robust and conservative legal system:

Is artificial intelligence ready to enter the courtroom? Will lawyers ever be replaced, or will we ever see a robot judge deciding the outcome of a case? What will the role of the average lawyer be in five years’ time? What about in ten or 15 years? Should lawyers acknowledge the use of AI in a legal process?

The pressure to answer such questions is on lawmakers, who feel compelled to regulate an appropriate legal framework of liability to ensure that innovation is not stifled and that liability is well considered.

The EU is set to step up regulating AI

In an attempt to address the challenges and opportunities presented by artificial intelligence, the European Union has agreed on an ambitious AI law to regulate this expanding field. This initiative puts the EU at the forefront of the technological revolution.

The AI Act imposes binding rules on transparency and ethics, requiring tech companies to notify individuals when they interact with AI systems, such as chatbots or biometric categorisation and emotion recognition systems. In addition, the Act prohibits the use of AI, such as biometric systems with sensitive characteristics and emotion recognition, in the workplace or schools.

Companies that fail to comply could be fined up to 7% of their global turnover. These measures will encourage closer co-operation between companies’ legal and technical departments, and highlight the need for specialised legal expertise in the field of AI.

What’s next?

As a result, the authors cannot help but wonder if AI can fundamentally displace the legal profession? Or, conversely, can AI create a new paradigm that optimises the performance of lawyers? Keeping in mind human qualities such as creativity, critical thinking, spontaneity, understanding of human complexity, empathy and nuanced decision-making, we strongly believe that a harmonious collaboration between AI and legal professionals can enhance the efficiency and quality of legal processes rather than replace the human touch in the legal field.

This is not to say that humans will not continue to be critical to the legal industry – they certainly will – but their roles, skills and specialisations may need to change to complement, rather than compete with, technology.

Given these challenges, a balanced and responsible approach to the development and implementation of AI technologies in law is essential. Finding solutions to protect data, ensure clear liability and avoid negative consequences for the justice system and individual rights is crucial. The development of clear rules and standards, as well as continuous adaptation to technological changes, is key to successfully navigating this new era of artificial intelligence.

D&B David si Baias

D&B David si Baias, connected law firm of PwC
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