From Gavel to Algorithm: How AI Is Reshaping Legal Practice
Artificial Intelligence (AI) is not a mere passing trend but is leading to a profound transformation in the field of legal practice. Recently, the use of Information Technology (IT) and AI in arbitration and litigation has shown a significant shift in the way lawyers, arbitrators, and judges operate, accompanied by fundamental changes resulting from such deployment. It is important to note that these developments are not limited to arbitration or litigation alone; they signify a transformation of the legal system as a whole. The relevance of this matter is evident in discussions related to international arbitration by the International Chamber of Commerce, as explored in their report titled "Information Technology in International Arbitration," or in the regulatory efforts at the European Union level with the proposal for a regulation by the European Parliament and Council, aiming to introduce harmonized rules for artificial intelligence.
Understanding Artificial Intelligence
Before delving further into the potential applications of artificial intelligence in arbitration and litigation, this section provides the reader with a brief overview of the definition of the term and its historical evolution.
The term "artificial intelligence", which now boasts various definitions, can be traced back to John McCarthy, the American computer scientist renowned for inventing the LISP programming language, who first introduced the term in his proposal for the Dartmouth Conference on August 31, 1955. However, the idea of automating or mechanizing human thought dates back further, potentially originating with the 18th-century work "L'Homme Machine" by the French physician, writer, pamphleteer, and radical Enlightenment philosopher Julien Offray de La Mettrie. While AI research has advanced since its inception, the core idea remains consistent to some degree. Nowadays, artificial intelligence is understood as a field that combines computer science and powerful datasets to facilitate problem-solving. Machine learning and neural networks are key concepts driving modern AI, with significant progress particularly in areas such as image recognition, natural language processing, and autonomous driving.
The Role of AI in Legal Practice
Having explored the topic AI in a more general context the question remains as to what benefits and opportunities does AI offer to legal practice?
Considering the possibilities that artificial intelligence opens up for today's legal practice, it becomes evident that artificial intelligence exerts an increasing influence on the work of lawyers and judges, enabling them to handle cases more efficiently. Natural language processing, in particular, is increasingly being used to analyze contracts, conduct legal research, and predict case outcomes. In both arbitration and litigation, such efficiency leads to cost savings and faster case resolution. Notably, the use of AI to predict (litigation) outcomes is remarkable. An example highlighting this potential is the successful deployment of AI in a research project by Washington University, which dates back as far as 2004. The project demonstrated that the algorithm developed for the task could predict the outcomes of 628 U.S. Supreme Court cases heard in 2002 with 75% accuracy, surpassing experts who achieved 59% accuracy. In a further study conducted in 2017 by the Illinois Institute of Technology, their algorithm, utilizing the US Supreme Court's database, demonstrated an exceptional predictive capability. It accurately foresaw the outcomes of cases spanning almost two centuries, from 1816 to 2015, achieving an impressive accuracy rate of 70.2%.
Likewise, in 2012, researchers at University College London employed machine learning to replicate judges' reasoning in judgments from the European Court of Human Rights, and they achieved a commendable 79% accuracy rate in predicting case outcomes. France, in particular, addresses these developments by enacting regulations, such as Article 33 of the Justice Reform Act, which prohibits disclosing judges' decision-making patterns concerning court rulings in the context of analyzing and predicting legal disputes, with a maximum sentence of five years for violations.
The impacts of AI on arbitration and litigation are unquestionably diverse and significant. In this context, AI not only influences legal strategy but also plays a role earlier in the process, for instance, in research utilizing legal databases through e-discovery, which is currently the most widespread form of AI usage in the legal field.
While the future of legal practice will undoubtedly be shaped by AI and Legal Tech, one must consider the role and importance of human presence in a future dominated by AI. Given the complexity of individual cases, human involvement in legal practice will remain indispensable in the near future. In terms of the role of judges in dispute resolution and arbitration, the social and political dimensions of legal practice and the legitimacy judges bring to the process are of great importance.
Legal Implications and Challenges
Although the use of AI offers much promise, it also presents challenges and risks, particularly in cases where arbitration awards or decisions are influenced by AI. Questions regarding jurisprudence and adherence to the rule of law inevitably arise. Risks exist, however, not only on the side of judges entrusted with the administration of justice but also on the side of lawyers, especially with regard to the responsible use of AI, as evidenced by the example of a rather bizarre case from the U.S., when an AI chatbot was blamed for the lawyers' submission of fictitious legal research. The European Union, through the "AI Act," is currently attempting to address this issue through regulations, although it does not directly pertain to arbitration. The regulation suggests that certain AI systems used by arbitrators in their mandates may be considered "high-risk" and subject to regulation.
The Future of Legal Practice
Having explored the role of artificial intelligence in litigation and arbitration, along with its advantages and disadvantages in a more general context, this section concludes by discussing the significance of AI in the practice of law. In line with the idea that AI will not replace lawyers but will assist lawyers who are proficient in using AI, it can contribute to streamlining a wide range of tasks, allowing human professionals to focus on aspects of the legal process that require human judgment. For lawyers, effective use of AI tools involves more than merely pushing a button. AI should be understood as a tool that is most effective when used in conjunction with human capabilities. Therefore, lawyers need to acquire the skills and knowledge necessary to select the right AI tools for specific tasks, create appropriate queries, and evaluate the relevance, quality, and accuracy of responses. It is the synergy between humans and AI that ensures effective and legally sound utilization.
Conclusion
In summary, AI represents an irreversible turning point in legal practice. The deliberate use of technology will help lawyers, arbitrators, and judges make better decisions, use resources more efficiently, and ultimately deliver swift and accurate justice. It is an exciting time for the legal industry, with AI serving as a guide to a promising future. In closing, the author would like to once again highlight the potential that AI offers, particularly when utilized in harmony with human capabilities. This synergy is evident in this article, which serves as a testament to this collaboration, having been initially crafted based on human insights and subsequently translated with the assistance of AI
Sources:
https://en.wikipedia.org/wiki/John_McCarthy_(computer_scientist)
Julien Offray de La Mettrie, L' homme machine, translated by Theodor Lücke, Stuttgart: Reclam, 2015.
https://en.wikipedia.org/wiki/Dartmouth_workshop
McGuire, Brian, History of Computing: The History of Artificial Intelligence, University of Washington
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Kauffman, M.E., Soares, M.N. AI in legal services: new trends in AI-enabled legal services. SOCA 14, 223–226 (2020). https://doi.org/10.1007/s11761-020-00305-x
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https://verfassungsblog.de/france-criminalises-research-on-judges/