AI and ParaLegal

The legal industry is facing an existential crisis, and it's coming in the form of artificial intelligence. ChatGPT-style software, with its human-like language fluency, is poised to take over much of the grunt work that lawyers do.

Lawyers’ day-to-day responsibilities are ripe with paperwork. But AI can instantaneously perform various mundane tasks that have traditionally been the bread and butter of lawyers.

Goldman thinks nearly 50% of legal work could be automated in the coming decades. But while some law firms remain skeptical about the potential of AI to automate jobs, others are embracing it as a game-changer that could make lawyers more productive and efficient.

Some law partners are comparing ChatGPT to a "smarter paralegal," and AI technology could enable lawyers to automate the grunt work and focus on developing industry expertise and stronger relationships with clients.

Chatbots could help lawyers become more productive, but that’s not necessarily beneficial to a law firm’s bottom line. With some partners billing thousands of dollars per hour, higher productivity from AI automation would likely result in fewer billable hours.

Takeaway: Brace yourselves, AI is coming to take your jobs, and professional services jobs seem to be especially in danger. AI could reduce billing for mundane grunt work, and service fees could become more reflective of the value a project adds. Better alignment of incentives we’d say!