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The International Bar Association (IBA) and the Center for AI and Digital Policy (CAIDP) have launched a new report titled The Future is Now: Artificial Intelligence and the Legal Profession.
This comprehensive study explores the transformative impact of artificial intelligence (AI) on the legal profession. It offers critical insights into the governance and ethical deployment of AI technologies in legal practice and how they help society.
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The report launch held during the 2024 International Bar Association Annual Conference in Mexico City, Mexico at a dedicated IBA President’s Morning Keynote Address session with CAIDP Executive Director Marc Rotenberg as the guest speaker.
The IBA, recognised globally as the leading organisation for international legal practitioners, bar associations and law societies, has partnered with the CAIDP.
The CAIDP is a worldwide network of AI policy experts and human rights advocates, to produce this pivotal report. Their combined expertise underscores the significance of understanding AI’s role in the future of law and law firms.
Key findings from the report include:
- 48 per cent of law respondents support regulation around the use of AI in the profession;
- 57 per cent said consistency was important in regulation as different countries around the world create their own rules;
- Less than half (91 out of 210 law firms) had policies in place around the use of AI in their organisations;
- 69 per cent of survey respondents were unaware of the extent to which AI regulation would impact their firms;
- larger law firms are using AI in client-facing applications such as legal research and building contracts;
- the use of AI technology offered a competitive advantage for law firms; and
- some law firms producing AI tools for their own use could be exposed to accusations of flouting competition law.
One of the main conclusions of the report is the transformative potential of generative AI. The technology is ‘poised to bring significant changes to the structure, operation and strategy of law firms.’
However, the report also cautions that ‘the implementation of AI in law firms requires extensive training and development programs. This will ensure successful integration and utilisation.’ The report highlights the need for a strategic approach to AI adoption. There must be enhanced focus on comprehensive education and skill-building to harness AI’s full potential effectively.
Key challenges facing the legal profession regarding AI include:
- ensuring effective management of data governance, security, intellectual property, privacy and policy development;
- AI’s influence on the hiring practices, structure and client fee schedules of law firms;
- the increased complexity of managing requirements raising the priority for AI training;
- regulation that is enforced rapidly could stifle innovation in law firms; and
- law firms may struggle to balance changing legal requirements with ethical obligations due to the speedy evolution of AI tools.
The legal profession needs to embrace AI
“Meeting the challenge posed by AI developments at the legal front, the IBA has assessed and highlighted the crucial role lawyers must play remaining at the centre of governance of technological changes. The legal profession needs to embrace AI, understanding and learning how to make use of it, so that legal services may benefit from this amazing evolution.,” said Almudena Arpón de Mendívil Aldama, IBA President.
Marc Rotenberg, CAIDP Executive Director, remarked, “As AI continues to evolve, it is imperative that we establish robust policies and frameworks to ensure fairness, accountability, and transparency. This report is a crucial step in that direction. It provides valuable insights and recommendations for legal professionals and policymakers alike.”
The Future is Now: Artificial Intelligence and the Legal Profession is built on previous work completed by the Artificial Intelligence Working Group of the IBA Alternative and New Law Business Structures (ANLBS) Committee.
More information can be found on the IBA website here or on the CAIDP website here.
