In recent years, many providers of software tools and solutions have adopted artificial intelligence-powered functionality to make their products more effective, accurate, and faster. The trend of increasing incorporation of AI in electronic platforms used by businesses may change how companies handle legal matters such as contract negotiation/drafting/execution, regulatory compliance, and litigation/dispute resolution. Companies can effectively leverage artificial intelligence to optimize their operations by understanding how AI can change business law.
AI and Contract Management
Artificial intelligence may soon provide businesses with critical tools to help manage the company’s written agreements and contractual obligations. Some of the ways that AI may change how businesses handle contracts include:
- Drafting and Reviewing Contracts – AIs incorporating large language models and natural language processing features may automate the contract drafting and review process for standard agreements, such as purchase forms or service contracts.
- Identification of Legal Risks – AI-powered contract review tools may develop the capacity to identify vague contract language or provisions that might create legal risks for the business, speeding up the review process and allowing attorneys to identify contract provisions needing manual review or negotiation.
- Managing Contract Lifecycles – AI platforms can assist companies with contract management by keeping legal teams on schedule for contract negotiation, execution, and renewal.
AI in Regulatory Compliance
AI can also help companies with regulatory compliance. Some of the compliance matters that artificial intelligence may soon help businesses with include:
- Cross-Jurisdictional Monitoring and Reporting – Artificial intelligence-powered solutions can help national or multinational businesses monitor their regulatory obligations across multiple jurisdictions by reading new laws and regulations as governments and regulatory agencies publish them.
- Predictive Risk Analysis – AIs in development may assist businesses with regulatory matters by identifying areas of a company’s operations where it might face risks of non-compliance
- Automated Documentation – AI tools can help businesses with recordkeeping required for regulatory compliance.
AI’s Role in Dispute Resolution and Litigation
Artificial intelligence has already begun to play a role in litigation and dispute resolution for many businesses. Some of the ways that AI has made business litigation easier for companies include:
- Legal Research – Artificial intelligence can help speed up legal research by better understanding search queries.
- E-Discovery – AI can make e-discovery tools more powerful by more accurately conducting initial reviews of productions for relevance or privilege, narrowing down the scope of documents requiring attorney review.
- Predictive Analysis – New AIs claim to identify probable litigation or regulatory outcomes based on prior cases.
- Dispute Resolution – Platforms in development may allow businesses to conduct mediation sessions with an AI mediator that can provide settlement insights and suggestions.
Ethical and Legal Considerations
As businesses adopt artificial intelligence for their legal needs, they should stay mindful of various ethical and legal considerations, such as:
- Bias – Some have claimed that AIs may perpetuate the biases of the people who program them without people recognizing the possibility of a computer exhibiting “bias.”
- Lack of Transparency – Critics of AI in business have raised concerns about the lack of transparency in how AIs reach decisions, especially when using third-party solutions whose developers may not publicize how their AI works.
- Data Privacy – Companies should exercise caution when using sensitive or personal information with AIs, especially third-party AI products.
- Potential for Future Regulation – Businesses should recognize the possibility that governments may adopt laws or rules to govern the use of artificial intelligence in business or legal settings.
Contact Our Firm Today to Learn More
If your business has considered incorporating artificial intelligence into your legal department’s work, talk to an experienced business law attorney to understand what AI can do for your business and the considerations your company should keep in mind before adopting artificial intelligence. Contact Lancaster Tech Law today for a confidential consultation with our legal team to discuss your company’s needs and options.