Business Bayani PH

In a recent exploration of the transformative potential of artificial intelligence (AI) in the legal industry, FTI Consulting senior managing directors Samuel Aguirre, Leonardo Florencio, and Karthik Balisagar delved into insights from a survey of over 100 legal practitioners worldwide. 

The focus of their investigation was on the current landscape, challenges, and the slow adoption of AI in dispute resolution. The authors highlighted the need to bridge the knowledge gap and establish clear guidelines to unlock the significant benefits AI adoption could bring.

Current Landscape and Challenges

AI’s potential to revolutionize the legal industry lies in its ability to process vast amounts of data and deliver outcomes devoid of human emotion. However, a recent legal case showcased the potential pitfalls of AI misuse, emphasizing the importance of proper implementation. 

The FTI Consulting survey of over 100 legal professionals worldwide revealed a cautious approach to AI adoption. While the potential applications of AI in dispute resolution are extensive, challenges such as unfamiliarity, concerns about accuracy, and a lack of clear guidelines hinder widespread implementation.

The survey findings indicated that AI tools are not widely prevalent in dispute resolution, with e-discovery and document review being the most popular applications. 

Despite the slow adoption, legal practitioners expressed optimism about AI’s potential to enhance the credibility and persuasiveness of legal arguments. However, a significant portion of respondents admitted to limited familiarity with AI tools, raising concerns about the technology’s overreliance and accuracy.

Accelerating AI Adoption

To speed up AI adoption in the dispute resolution industry, the survey suggested the need to bridge the knowledge gap among legal practitioners. Those with advanced or intermediate knowledge of AI expressed higher confidence levels and a stronger belief in AI’s transformative impact. 

Clear guidelines and frameworks were found to be lacking in a significant portion of surveyed firms, with larger firms leading the way in establishing such protocols. To unlock AI’s full potential, the legal profession must prioritize education and set clear guidelines for technology use.

Who Benefits from AI in Dispute Resolution?

Legal practitioners foresee significant potential for AI to improve access to justice, with law firms, disputing parties, and in-house legal departments identified as the primary beneficiaries. 

Surveyed practitioners with advanced knowledge and exposure to AI through their firms demonstrated a more optimistic perception of AI’s transformative impact. Firms with prior experience in using AI in disputes also recognized the benefits, particularly in handling large volumes of information and automating manual processes.

AI and Ethical Considerations in Dispute Resolution

A recent report published on LexisNexis and authored by legal experts André Guskow Cardoso, Justen Pereira Oliveira, Inês Bragança Gaspar, and Emanuel Cardenas explored the legal and ethical limits of AI tools in dispute resolution. The piece highlighted a webinar organized by ArbTech, where a panel of experts addressed key ethical and legal issues related to AI in dispute resolution.

The experts emphasized the risks associated with biases, security problems, and societal impacts of AI in dispute resolution. The lack of transparency in AI models, potential hallucinations, and the environmental impact of training new language models were also discussed. They stressed the importance of transparency in AI systems, adherence to ethical codes, and considerations for privacy, consent, and security.

Technical Limitations and Future Considerations

Douglas Amorim, a computer scientist, provided a technical overview of large language models (LLMs) like ChatGPT. While LLMs offer efficiency in generating semantically similar sentences, they face challenges in terms of dataset limitations, computational costs, and potential deviations from legal principles. The webinar highlighted the need for transparency, especially in the use of generative AI tools, and the importance of addressing ethical considerations.

The legal community sees AI’s usefulness in dispute resolution, but recent incidents, like a lawyer’s reprimand for AI-generated hallucinations, stress the need for thorough discussions. Maturity in using language model tools requires careful use, thorough discussions, and a commitment to managing risks.

Legal practitioners need to balance innovation and ethics as AI shapes dispute resolution. Bridging the knowledge gap, setting clear guidelines, and promoting transparency are crucial steps to unlock AI’s full potential in transforming the legal industry.◼