Colorado Technology Law Journal > Uncategorized > The Rise of AI in Legal Practice: Opportunities, Challenges, & Ethical Considerations

The Rise of AI in Legal Practice: Opportunities, Challenges, & Ethical Considerations

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I. Introduction

With the arrival of artificial intelligence (AI)-based technologies, which can automate legal routine work, legal research, document review and examination, and predictive analytics, the legal profession is undergoing a monumental change. This blog post discusses substantial findings from recent literature and reports relating to the profound effects of AI on the legal profession.

II. The Growing Role of AI in Legal Tasks

Some of the most prominent contributions of AI towards the practice of law are document review, legal research, review of contracts, and risk assessment. Technology-assisted review (TAR) helps attorneys review huge data volumes within a fraction of the previously required time, with minimal errors and with increased efficiency.[1] AI-based research instruments facilitate summarizations of legal principles, legislation, and case law, which makes it easy for attorneys to find persuasive precedents under a time crunch.[2] For example, AI-based legal research instruments like Westlaw Edge and Lexis+ AI use machine algorithms to produce relevant case law within seconds, significantly reducing the time used for conventional searches.[3]

Innovations in generative AI (GenAI) have further streamlined legal procedures. GenAI solutions are capable of drafting contracts, legal memorandums, and replies to requests for proposals.[4] Although review by a human in the loop is unavoidable, the time spent drafting the initial version is shorter, and attorneys can focus their time and attention on higher-level thinking and strategy.[5] Certain law firms, such as Ballard Spahr, have introduced proprietary GenAI solutions, such as Ask Ellis, which helps attorneys draft legal documents and supply a secure means of handling confidential client data.[6]

III. AI in the Courtroom and Litigation Strategy

In addition to transactional work, AI is gaining ground in court and litigation. Legal analytics powered by AI allow attorneys to review trends within a case, predict judges’ actions, and strategically plan litigation.[7] Legal analytical tools powered by AI can also scan past judgments, the actions of judges, and jurisdictional bias to make strategic suggestions.[8] Predictive tools such as Gavelytics have already been used to predict judges’ rulings based on past records.[9] However, the use of AI for court advocacy is not controversy-free. The use of artificially manufactured legal citations with false cases has shown the need for a human validation process. For example, a Wyoming federal judge disciplined attorneys with Morgan & Morgan PA and the Goody Law Group for filing pretrial motions with citations fabricated by artificial intelligence.[10] The judge withdrew the pro hac vice status of lawyer Rudwin Ayala and fined him $3,000 for drafting the motions without verifying the legitimacy of the artificially generated citations.[11] Attorneys T. Michael Morgan and Taly Goody were each fined $1,000 for signing the documents without reading them.[12] The discrepancy was found after defendants Walmart and Jetson Electric Bikes realized the cited cases weren’t found in legal databases, but made up by ChatGPT.[13] The attorneys have withdrawn the motions, apologized, and made moves against future misuse of the technology.[14] This recent example serves as a reminder for attorneys to verify artificially generated citations to avoid sanctions and uphold the integrity of the legal profession.

AI usage is also improving e-discovery by reducing the time and manpower spent wading through tens of thousands of documents looking for the right evidence.[15] Machine algorithms can identify patterns within data, flag anomalies for reviewers, and suggest case-related material, thereby streamlining any pre-trial preparation.[16] In a recent benchmark study by Vals Al, manual lawyers were beaten by AI software, like Harvey, for summarization work within documents and demonstrated the ever-growing potential of AI for helping with lawsuits.[17]

IV. Ethical and Professional Issues Regarding AI

Despite its advantages, AI has raised professional and ethical issues amongst the legal field and profession. Major issues include:

a. Accuracy and Reliability. AI software occasionally delivers inaccurate or deceptive results. Benchmark testing has indicated that while AI solutions perform optimally for straightforward legal queries, they are not very good with complicated legal reasoning.[18] Even the best AI software requires scrupulous cross-checking by professional attorneys to ensure their results are accurate.

b. Confidentiality and Data Protection. AI solutions are trained with vast amounts of data, thus raising client confidentiality issues. Businesses need to ensure their AI solutions are adhering to stringent data protection protocols so as not to leak data inadvertently.[19] Ballard Spahr’s internal application was developed with the ability to operate within a closed network where client data would not be exposed to publicly available AI algorithms.[20]

c. Fairness and Bias. AI algorithms are known to replicate biases present within their data. Attorneys need to carefully review the results provided by AI to ensure discriminatory results are avoided, especially when applying to criminal justice and labor law issues.[21] The potential for AI to reinforce systematic bias has been demonstrated through experiments with predictive policing software targeting the enforcement actions against minority communities with fairness and equal protection implications.[22]

d. Regulatory and Ethical Principles. State bar assocations and the American Bar Association (ABA) have implemented guidelines for using AI within the practice of law through accountability, transparency, and informed client consent standards.[23] For example, the State Bar of California provided guidelines for discouraging attorneys from using too many AI-generated sources and for requiring attorneys to affirm the use of AI-generated citations.[24]

V. AI’s Impact on Legal Firm’s Business Models

The increased use of AI is transforming law firm business models. The billable hour model has long ruled the legal profession; however, it is now being questioned by the efficiency gains that AI is ushering in.[25] Greater rates of work by leveraging automation using AI translates to demands for alternative pricing models, including fixed fees and value-based billing.[26] Because of this, law firms should consider moving away from billable hours for work done by AI and instead provide flat fees for using AI-driven review services, making it less expensive for the client and more efficient.[27] In addition, clients are also putting pressure on law firms to adopt AI in order to save costs, thus introducing competitive pressure among law firms to implement AI solutions.[28] Some law firms are also inventing their own AI-based platforms to make themselves stand out in the market, with improved contract review capabilities, automated compliance tracking, and instant legal risk assessment.[29] Linklaters LLP, for instance, has created an AI sandbox for testing and implementing legal AI solutions, enhancing better risk handling and compliance tracking.[30]

As companies embrace AI-based legal assistants, hybrid work patterns are emerging. In these patterns, AI attends to routine cases while attorneys deal with complex lawsuits and client matters. Smaller law firms can now compete with larger firms by providing quality legal advice at reduced expenses, creating new business opportunities.

VI. Future of AI in Legal Education and Training

With the increasing use of AI in the practice of law, law schools are updating their curriculum with courses intended to make future attorneys AI-literate.[31] Law students are preparing for careers where they will likely encounter AI with a boost from courses that cover AI ethics, the use of legal tech, and data privacy.[32] The capabilities and limits of AI will be essential for new attorneys entering the profession.[33]

To adapt, schools like the University of California, Berkeley, and Arizona State University have introduced law courses and centers exclusively for studying how AI operates within the practice of law.[34] Other law schools have introduced standalone AI clinics and labs, where students work with actual AI legal software and gain hands-on experience with how AI resources are used effectively and ethically.[35]

Continuing Legal Education (CLE) courses are also evolving because licensed practitioners need to remain current with the latest developments in AI and ethics.[36] The ABA is encouraging competency standards for AI to ensure that attorneys understand how AI impacts client advocacy and legal determination.[37]

VII. Role of AI in Access to Justice

AI’s most prominent role within the legal field is bringing justice closer to those who cannot access it. Legal aid groups and legal non-profits use AI-based virtual legal assistants and legal bots to provide preliminary legal advice to poor communities.[38] AI-based tools can help people draft legal documents, navigate the process of claiming minor sums through the court process, and get legal advice translated into their languages.[39] For instance, AI-based chatbots like DoNotPay help people challenge parking tickets and navigate consumer protection claim procedures, facilitating legal assistance with affordable prices.[40]

Nonetheless, the divide remains. Although AI may improve accessibility, unequal technology expertise and connectivity may hinder marginalized communities from obtaining complete access to legal remedies powered by AI.[41] To bridge the legal justice gap in the future, it will be crucial to make legal instruments powered by AI inclusive to all demographics.

VIII. Conclusion

AI’s entry into the legal world is unavoidable as much as it is revolutionary. As great as the advances in efficiency and accuracy brought in by AI and risk management are, the demands for regulation to meet professional and ethical issues are just as daunting. Law firms have to balance their adoption of technological innovation with upholding the fundamental ethos of the practice. As AI continues to develop, careful regulation and moral guidance will lead to its responsible implementation in the legal profession. In the coming years, legal research, litigation, and client service will be dominated by the role of AI. Lawyers and attorneys must be sufficiently AI-literate to remain a relevant piece of the legal puzzle. When law firms navigate this new world, the ones who harness the power of AI responsibly and creatively will be better placed for the future of the legal profession.

  1. 7 Ways artificial intelligence can benefit your law firm, American Bar Association (September 2017), https://www.americanbar.org/news/abanews/publications/youraba/2017/september-2017/7-ways-artificial-intelligence-can-benefit-your-law-firm/. ↑
  2. Id. ↑
  3. Expedite your most complex legal research tasks, Thomson Reuters (last visited March 18, 2025), https://legal.thomsonreuters.com/en/products/westlaw-edge; Experience a New Era in AI Legal Research Tools, LexisNexis (last visited March 18, 2025), https://www.lexisnexis.com/en-us/products/lexis-plus.page. ↑
  4. AI and the practice of law: Major impacts to be aware of in 2025, Thomson Reuters (February 3, 2025), https://legal.thomsonreuters.com/blog/ai-and-law-major-impacts/. ↑
  5. Id. ↑
  6. Madison Arnold, Ballard Spahr Launches AI Tools Led By ‘Ask Ellis’ Chatbot, Law360 Pulse (February 26, 2025), https://www.law360.com/pulse/dc-pulse/articles/2303347/ballard-spahr-launches-ai-tools-led-by-ask-ellis-chatbot. ↑
  7. Thomas Reuters, supra note 4. ↑
  8. Ashley Hallene & Jeffrey M Allen, Using AI for Predictive Analytics in Litigation, American Bar Association (October 16, 2024), https://www.americanbar.org/groups/senior_lawyers/resources/voice-of-experience/2024-october/using-ai-for-predictive-analytics-in-litigation/ ↑
  9. The Practice, Data in the Court – Judicial analytics in practice, Harvard Law School (March/April 2022), https://clp.law.harvard.edu/knowledge-hub/magazine/issues/judicial-decision-making/data-in-the-court/ ↑
  10. Sara Merken, AI ‘hallucinations’ in court papers spell trouble for lawyers, Thomson Reuters (February 18, 2025), https://www.reuters.com/technology/artificial-intelligence/ai-hallucinations-court-papers-spell-trouble-lawyers-2025-02-18/; Sara Merken, Lawyers in Walmart lawsuit admit AI ‘hallucinated’ case citations, Thomson Reuters (February 10, 2025), https://www.reuters.com/legal/legalindustry/lawyers-walmart-lawsuit-admit-ai-hallucinated-case-citations-2025-02-10/; Lauren Berg, Injury Attys Sanctioned Over AI-Hallucinated Case Citations, Law360 Pulse (February 24, 2025), https://www.law360.com/articles/2302194/injury-attys-sanctioned-over-ai-hallucinated-case-citations. ↑
  11. Id. ↑
  12. Id. ↑
  13. Id. ↑
  14. Id. ↑
  15. How Is AI Changing the Legal Profession?, Bloomberg Law (May 23, 2024), https://pro.bloomberglaw.com/insights/technology/how-is-ai-changing-the-legal-profession/; American Bar Association supra note 1; How AI is transforming the legal profession (2025), Thomson Reuters (January 16, 2025) https://legal.thomsonreuters.com/blog/how-ai-is-transforming-the-legal-profession/. ↑
  16. Thomas Reuters supra note 4. ↑
  17. Steven Lerner, Harvey Leads In Benchmarking Study Against Human Lawyers, Law360 Pulse (February 27, 2025), https://www.law360.com/pulse/articles/2297432/harvey-leads-in-benchmarking-study-against-human-lawyers. ↑
  18. Matt Perez, AI Models Improving, But Still Require Oversight, Report Says, Law360 Pulse (February 24, 2025), https://www.law360.com/pulse/legal-tech/articles/2301281/ai-models-improving-but-still-require-oversight-report-says. ↑
  19. Madison Arnold supra note 6. ↑
  20. Id. ↑
  21. Thomson Reuters supra note 4; Thomson Reuters supra note 15. ↑
  22. Artificial Intelligence in Predictive Policing Issue Brief, NAACP (last visited March 18, 2025) https://naacp.org/resources/artificial-intelligence-predictive-policing-issue-brief; Renata M. O’Donnell, Challenging Racist Predictive Policing Algorithms Under The Equal Protection Clause, 94 NYU L.J. 544, 553-64 (2019) (describing how machine learning-based predictive policing algorithms can be biased), https://www.nyulawreview.org/wp-content/uploads/2019/06/NYULawReview-94-3-ODonnell.pdf. ↑
  23. Thomson Reuters supra note 4. ↑
  24. Id.; Kewa Jiang, California State Bar Releases Guidance On Use of GenAI in Practice of Law, California Lawyers Association (last visited March 18, 2025) https://calawyers.org/privacy-law/california-state-bar-releases-guidance-on-use-of-genai-in-practice-of-law/. ↑
  25. Frederick J. Esposito Jr, Evolution of Alternative Fee Arrangements Through Process Improvement Methodologies and AI Technology in Law Firms, American Bar Association (February 1, 2025), https://www.americanbar.org/groups/law_practice/resources/law-practice-magazine/2025/march-april-2025/evolution-of-alternative-fee-arrangements-through-process-imporvement-methodolgies-and-ai/ ↑
  26. Id.; Thomson Reuters supra note 4. ↑
  27. Bob Ambrogi, AI Adoption By Legal Professionals Jumps from 19% to 79% In One Year, Clio Study Finds, LawSites (October 7, 2024), https://www.lawnext.com/2024/10/ai-adoption-by-legal-professionals-jumps-from-19-to-79-in-one-year-clio-study-finds.html. ↑
  28. Thomson Reuters supra note 15; Stellar Performance 2024 Report, Thomson Reuters (2024), https://legal.thomsonreuters.com/content/dam/ewp-m/documents/legal/en/pdf/reports/stellar-performance-report-2024-tr4553542.pdf?gatedContent=%252Fcontent%252Fewp-marketing-websites%252Flegal%252Fgl%252Fen%252Finsights%252Freports%252F2024-stellar-performance-report-free-download-for-law-firms&form=thankyou. ↑
  29. Madison Arnold supra note 6; Matt Perez supra note 18. ↑
  30. Matt Perez supra note 18. ↑
  31. Karen Sloan, Law schools boost their AI offerings as industry booms, Thomson Reuters (June 18, 2024), https://www.reuters.com/legal/transactional/law-schools-boost-their-ai-offerings-industry-booms-2024-06-18/; Bob Ambrogi, Remember that ABA Survey of Law Schools with AI Classes? This May Be A More Accurate List, LawSites (August 1, 2024), https://www.lawnext.com/2024/08/remember-that-aba-survey-of-law-schools-with-ai-classes-this-may-be-a-more-accurate-list.html. ↑
  32. Thomas Reuters supra note 4. ↑
  33. Id. ↑
  34. Id.; Berkeley Law Unveils Groundbreaking AI-Focused Law Degree Program, UC Berkeley Law (August 13, 2024) https://www.law.berkeley.edu/article/berkeley-law-unveils-groundbreaking-ai-law-degree-program/. ↑
  35. Vanderbilt AI Law Lab, Vanderbilt University Law School (last visited March 18, 2024), https://law.vanderbilt.edu/vanderbilt-ai-law-lab/; Julia Brunette Johnson, Innovative Law Schools: Artificial Intelligence, The National Jurist (December 7, 2023), https://nationaljurist.com/national-jurist/news/innovative-law-schools-artificial-intelligence/. ↑
  36. John G. Browning, No “Robot Lawyers” Just Yet: The Role of Continuing Legal Education in Fulfilling the Duty of Technological Competence, 72 Journal of Legal Education 577, 581-84 (2024) (describing the evolution of ABA required competence standards with evolving technology in the legal field and specific state compliance), https://jle.aals.org/cgi/viewcontent.cgi?article=1806&context=home; Continuing Legal Education in the Age of AI: Preparing Lawyers for the Future, Prevail (October 23, 2024), https://blog.prevail.ai/cle-ai-preparing-lawyers/. ↑
  37. ABA issues first ethics guidance on a lawyer’s use of AI tools, American Bar Association (July 29, 2024), https://www.americanbar.org/news/abanews/aba-news-archives/2024/07/aba-issues-first-ethics-guidance-ai-tools/. ↑
  38. Bloomberg Law supra note 15. ↑
  39. AI.Law Introduces AI-Driven Legal Tool to Aid Pro Se Litigants in Drafting Lawsuits, Nexstar Media Group, Inc., (December 30, 2024), https://www.8newsnow.com/business/press-releases/ein-presswire/770989488/ai-law-introduces-ai-driven-legal-tool-to-aid-pro-se-litigants-in-drafting-lawsuits/. ↑
  40. Elena Cresci, Chatbot that overturned 160,000 parking fines now helping refuges claim asylum, The Guardian (March 6, 2017), Donotpay, Deepgram (last visited March 18, 2025) https://www.theguardian.com/technology/2017/mar/06/chatbot-donotpay-refugees-claim-asylum-legal-aid; https://deepgram.com/ai-apps/donotpay. ↑
  41. Drew Simshaw, Access to A.I. Justice: Avoiding an Inequitable Two-Tiered System of Legal Services, 24 Yale L.J. 151, 170-80 (2022) (description of the “inequitable two-tiered system of legal services” created by AI), https://yjolt.org/sites/default/files/simshaw_-_access_to_a.i._justice.pdf; Monelle Garber, The use of AI can disproportionately negatively affect marginalized groups in our society. Is there any benefit to using AI in our legal system?, Doughty Street Chambers (October 18, 2023), https://www.doughtystreet.co.uk/sites/default/files/media/document/Monelle%20Garber.pdf. ↑

 

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