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AI and the Future of Law Firms
AI is transforming the legal profession, forcing law firms to determine if – and how- to adapt to new tools that promise efficiency, cost reduction, and increased accessibility to legal services. But with these advancements come serious challenges, particularly the problem of AI-generated “hallucinations”—fabricated information presented with complete confidence.
A recent Fortune article, “How AI Will Change Law Firms,” outlines the shifting landscape, noting that AI will alter the structure and operation of law firms. And yet, the cautious approach to AI that persists at the top of some law firms shows that managing partners who still worry about moving too early are overlooking the significant adoption that’s already well underway. An international study of professionals conducted last year found that AI is the top strategic priority for law firms, and a sizable 22% of respondents classified their firm as an AI innovator or early adopter.
The next wave of generative AI adoption in the legal industry will come from those firms that realize they need to be “fast followers.” Managing partners report that there are many perceived advantages to being a fast follower rather than a leader. That’s because there are real costs associated with technology and training, and some firms want to wait for others to sort out the thornier issues of how to handle client privilege and data privacy in the era of AI.
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