12 Jun Why leaving your legal documents to AI is risky business
Andrew Dongworth, partner and company and commercial solicitor at HRJ Foreman Laws Solicitors
Artificial Intelligence (AI) is advancing rapidly, and its impact is impossible to ignore. At HRJ Foreman Laws, we embrace technology and innovation. However, from a legal perspective, a growing number of businesses are relying on AI tools, including ChatGPT, to quickly draft important legal documents, such as policies, contracts, and terms & conditions.
In theory, this provides a quick and easy way of accessing key documents that are central to the day-to-day running of a business. The problem? A distinct lack of personalisation, and a real risk of ‘hallucination’, can lead to inadequate clauses and protections.
Earlier this year, the large American law firm Morgan & Morgan issued an urgent email to more than 1,000 lawyers. It stressed that AI tools, whilst useful in some contexts, were producing fake case laws and including made-up information in court filings. Knowing how to effectively use AI in a legal context, then, has become extremely important for legal professionals and their clients.
The risks of using AI are real, here’s what to bear in mind:
AI doesn’t understand your business
AI tools don’t think, they predict. They respond to inputs based on patterns – not the unique structure of your business, the industry you operate in, or the level of risk you’re willing to take. Any documents it generates for you are unlikely to be properly tailored to your unique requirements.
Confidentiality isn’t guaranteed
When you use AI, your data and inputs may be stored and used to improve the model. Whilst some offer opt-out features, conversations are still typically stored for a period for ‘safety’ reasons. This presents serious concern, especially when sensitive legal or business information is involved.
Mistakes are common
AI tools frequently ‘hallucinate’, producing results that appear confident but that are nevertheless incorrect. When the subject is a legal document, these errors can take the form of invalid clauses, insufficient protections, and enforceability issues. Any one of these can present serious problems for your business. The New Scientist has reported that hallucinations are getting worse and we may never solve them.
There’s no duty of care
Unlike legal professionals, AI platforms don’t carry professional indemnity insurance. If something goes wrong, whether it’s contractual failures or legal disputes, their providers aren’t accountable. By contrast, reputable law firms are highly regulated and insured. There’s also a clear avenue of redress through the Solicitors Regulation Authority.
Legal advice isn’t one-size-fits-all
Your business is unique, which means your legal documents likely need to be, too. They should factor in your specific operations, goals, and liabilities, covering your nuances. Crucially, the law changes and evolves – AI tools are unlikely to keep up, with new developments presenting fresh opportunities for outdated responses and errors.
Using AI appropriately – How we’re embracing new technology at HRJ Foreman Laws
AI is a powerful tool. It’ll likely streamline a vast array of business practices, from managing schedules to generating financial forecasts. Forward-looking law firms like HRJ Foreman Laws Solicitors are also leveraging the technology to responsibly provide basic templates, and complete admin heavy tasks more quickly. This provides our solicitors with more time to focus on their legal work, providing the most value and best outcomes for our clients. That might include applying their knowledge in highly specific or specialised fields or handling the nuances of complex and often lengthy negotiations that involve a diverse range of participants.
For the time being, the real value AI tools provide lies with how they reduce the time we spend on ‘unbilled’ hours – meaning that more of the working day is specifically dedicated to our clients and their cases.
Don’t risk it all on generated documents. Work with legal experts you can trust
Law is complex, and even small errors or missteps can carry serious costs for your business. When it comes to legal documents, currently, the risks of using AI far outweigh any perceived benefits for individual decision-makers and businesses. AI technology should be a tool for forward-looking legal experts, not a substitute for them. Don’t compromise your interests by looking for a quick fix or a shortcut – stick with expert, tailored legal advice from a qualified professional.
At HRJ Foreman Laws, we deliver thorough and personalised legal health checks, covering your business’s policies, contracts, and terms & conditions. These provide a personalised, efficient, and cost-effective route to peace of mind. Book yours today: https://hrjforemanlaws.co.uk/contact/
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