Expertise, nuance and judgment, qualities that have long defined legal work, are inherently human in nature. And while the good news is they aren’t going anywhere, we can’t ignore that as technology advances there’s growing dialogue about how artificial intelligence (AI) and automation will impact the in-house legal profession.
Will machines replace human lawyers? No. Frankly, I’m bored of this question (like you perhaps?) so rest assured this article won’t be the millionth piece to labor the subject. There will always be a place for nuanced advice and judgment from lawyers due to their specific knowledge and context acumen; even more so for in-house lawyers than for private practice attorneys. The soft skills required to manage issues across departments and balance business priorities are arguably even more exacting than within the more confined scope of private practice law.
Nevertheless, legal departments are at a crossroads as they try to balance the increasing need for efficiency and cost savings with the expertise that defines the legal profession.
Some of the most successful technologies in recent history are the result of the intersection of human and computer intelligence. The same can be said for legal technology and the thrilling reality of what happens when human and computer intelligence combine.
Which is what this article will explore: how in-house lawyers can benefit from combining AI-driven technology and human expertise to reduce risk, improve productivity and unlock immense value.
We all know specialization leads to economies of scale, and the legal profession is no different. The more we narrow our focus to what we’re best at, and the more efficient we become at this task, the greater the efficiency gains and the more we all benefit. Less time and effort are required to produce the output. In other words, the same time and money allows for the production of more outputs.
But what does this have to do with legal tech and in-house law?
History is packed with examples of machines working hand-in-hand with humans to achieve extraordinary results. That is, specializing in what they do best for high-level outcomes. Let’s take a look across industries:
Think about fraud detection in banking. While computers excel at processing vast volumes of transactions, identifying patterns, and flagging potential fraud, it’s the trained human eye and judgment that have the final say, ensuring nuanced decisions.
Similarly, a partnership between humans and technology has reshaped industries like healthcare, for example by using AI for diagnostics. AI tools like IBM Watson analyze medical images and patient data to suggest potential diagnoses. But it is human doctors who provide the final diagnosis, leveraging their experience and understanding of each patient’s unique history.
Modern aircraft rely heavily on automation to assist pilots during flights. Autopilot systems handle long stretches of navigation and maintain stability, but it’s the pilots, with years of training and their ability to make quick judgment calls, who step in during unexpected situations. This partnership between pilots and technology has resulted in dramatically improved flight safety over the years.
While robotic rovers and satellites collect huge amounts of data from planets and beyond, it’s the human scientists and engineers who interpret the findings, design the missions, and push the boundaries of our understanding of the universe. This synergy has brought about incredible discoveries, including information about the surface of Mars and the location of distant galaxies.
The common thread? Computers might excel at processing tremendous amounts of data, automating repetitive tasks and offering objective insights, but humans bring creativity, context and ethical discernment to the table – qualities no machine can replicate. Yet they can successfully co-exist and produce transformative results.
What will history write for in-house legal?
Some aspects of legal work are ‘better suited’ to computers.
Here’s where computers excel:
Document review can take human lawyers hours, or even days, to cover – from massive contracts and cases to complex regulations. AI-powered tools, like LawVu, are able to scan thousands of documents and extract key clauses in minutes. Which means that with the heavy lifting done, lawyers get to focus on interpretation and insight.
Tasks like creating NDAs and compliance tracking follow predictable patterns or triaging business requests. With automation tools, in-house legal teams can template and automate these processes, saving valuable time for work that genuinely requires their expertise.
AI tools like litigation analyzers can identify potential risk factors based on historical success rates, market conditions or case law – nuances lawyers may not always catch given their workload.
Although AI might help highlight potential legal risks or opportunities, the context of why those risks matter to the business isn’t something it can grasp or understand what it could cost the business. It’s lawyers who must connect these dots.
Solutions aren’t always strictly by-the-book, in a legal sense, particularly when it comes to in-house law. In-house lawyers understand nuance across business departments, and have the ability to balance business goals and context, shaping solutions that align with their company’s goals.
Legal issues and outcomes can be deeply personal. Whether understanding employee issues, negotiating contracts or resolving disputes, the delicate skill of advocating for another person’s interest is something only humans can deliver.
AI doesn’t (and shouldn’t) make ethical decisions. Technology can assist in evaluating potential outcomes, but human lawyers are responsible for incorporating ethics into each decision and building trust.
The good news for in-house is that these human specializations are often the most valuable and purpose-driven parts of the job – and they’re not going anywhere.
By combining these strengths, in-house legal teams can thrive, or in economic terms, find their economies of scale. And there’s more good news:
Freeing in-house counsel from administrative burdens, whether through automated contract management systems or AI-driven document review, means they have more time for strategic work and can focus on aligning it more closely with business objectives.
AI tools can enhance risk mitigation by providing visibility into risks a company might face – but it’s up to in-house lawyers to decide how to address those risks. Assisted by technology, identifying problems before they escalate becomes much easier.
Relying too heavily on humans to do the grunt work leads to burnout, whereas leaning exclusively on AI can feel risky. Combining the two is a great way to boost productivity without adding stress to in-house teams. The result is a reduction of workload stress which helps to preserve the high-quality output businesses demand from their counsel.
With AI streamlining processes and simplifying legal data, in-house lawyers can enjoy better cross-functional collaboration, communicating more effectively with other teams and making the legal department a valued strategic partner across the business.
Change can be daunting, which is why some legal professionals are hesitant to adopt legal tech. But it’s worth remembering that within that hesitation lies an opportunity. By shifting the lens from fear of replacement to excitement about empowerment, it’s possible to viewAI as an ally rather than a disruptor. Here are some practical steps to use with your team to help them overcome any concerns as you embark on your tech journey:
Many industries around the world have grappled with the ‘should or shouldn’t we adopt technology’ conundrum that legal is currently battling with. So, it’s worth acknowledging that the future of in-house legal work isn’t about humans versus machines; it’s about humans with machines – specializing in what they do best. For in-house legal teams, this collaboration represents the chance to unlock new levels of value – transforming the way that they operate and support their businesses. And they get to enhance their own professional satisfaction (a bonus worth having).
By blending the best of both worlds, you can ensure not only that your company stays competitive, but that your legal team is truly thriving in a meaningful way.
For legal professionals, nuanced skill and judgment will be forever required, even more so for lawyers working in-house where many layers of soft skills are necessary. But to prepare for the future, which will have technology at its forefront whether you like it or not, the pathway to transformation is not just about adopting new tools. It’s about cultivating a mindset of possibility and specializing in what you, as a human and a lawyer, are best at: creative solutions, ethical advice, empathy and strategy.
What legacy will your legal team craft?
