April 28, 2022

Can You Automate Drafting Non-Complicated Documents With AI?

In the present scenario with ever-evolving contracts and complicated legal liabilities, one may question what may be the pathway for the future where the vision has to be of acquainting the masses with legal drafting skills in order to avoid the piling suits of litigation which overburden the judiciary thereby slowing down the process of dispute resolution. Artificial Intelligence (AI) emerges as a promising pathway to empower individuals with legal drafting skills, bridging the gap in access to legal services. Surprisingly, even in developed countries like the United States, as per a 2019 study conducted by the Massachusetts Institutes Of Technology, more than 50% of the middle class, lack access to legal services. 

This article explores the advancements made by AI in legal drafting and its future potential, offering an effective tool to combat unnecessary litigation.

Advancements in AI Legal Drafting

To begin with, one can analyze various software solutions which are currently present in the business world claiming to provide AI legal drafting solutions. For instance, cloud-based ANAQUA Studio, which is specifically designed for drafting patent documents using artificial intelligence. It is claimed to be the first patent application-drafting tool for lawyers that saves four hours on provisional patent applications and 20 hours on non-provisional types. The software is said to be able to detect document errors, circular claim references, and formatting defects aside from automatically generating literal claims support.

Apart from Anaqua, Seattle-based RoanPatent released SmartShell, an AI-powered software that supports paralegals in document reviews, AI drafting of legal documents, formatting, and identifying issues on patent applications. This software uses AI and natural language processing to assist in creating legal claims. The company claims to be doing for patents what Computer-Aided Design (CAD) did for architects and engineers – creating patent drafting tools to help professionals complete their goals more efficiently and with better quality.

From the above examples, it would be safe to assume that the companies currently are focusing on the Intellectual property field, specifically patents as far as the process of AI legal drafting is concerned. These companies use advanced Machine Learning tools to draft complex legal documents with the help of limited user input. Though the initial preference of the companies is in the field of Intellectual property for economic opportunities associated with the field, the transition to other fields would be quick to assume.‍


Business Models: From User-Friendly to Professional-Centric

One important trend concerning the business models adopted by many legal solution companies is that these platforms are designed to be ‘professional friendly’ rather than ‘user friendly'. The focus of these platforms is mainly on the companies and law firms that act as their permanent clients and use these AI drafting softwares for their day-to-day transactions. The primary reason which could have directed the companies towards this path could be their lack of confidence with respect to the algorithms. One reason for that could be the situation where these softwares themselves operate on the availability and the quality of standard documentation in specific areas of law. In fields, where there is no shortage of standard documentation, the process is made more efficient and quick. 

However, the platforms that cannot create their own standard documentation or model templates, still rely on the data and inputs provided by humans to a large extent. As a result, the cost of automation is harder to justify when the document in question isn’t used often enough. The first result is that smaller firms, which have less documentation capital at their disposal, are less likely to benefit from the marginal returns of the software and more likely to be deterred by its fixed cost.


Efficiency and Work Burden Management

Thus the current aim of AI legal drafting is mainly driven towards bringing efficiency and managing the work burden of professional lawyers. Premier Law Firms like Clifford Chance have their own AI-Driven drafting tools like ‘Dr@ft’ which, when used as the first pass and then have lawyers carry out some degree of quality control has the potential to save time ranging from 20% to 50% compared to traditional drafting methods.

With the efficiency that AI technologies bring for the lawyers there also comes the ethical dilemmas associated with outsourcing the client details which form an essential part of Attorney-Client Privilege, to a third party. An opinion from the American Bar Association addressed the issues that arise when lawyers outsource legal work to third parties to draft legal documents, and it specifically addressed outsourcing the preparation of patent applications. The ABA stated that among other things:

  1. the attorney must be competent to review the work and must remain responsible for the work.
  2. the fee must be reasonable,
  3. the lawyer may need to inform the client that the lawyer is using the services,
  4. client's confidence must be protected.
  5. the lawyer must take reasonable care to avoid conflicts of interest, and
  6. the lawyer must avoid assisting in the unauthorized practice of law. Hence, just as a lawyer can have a non-lawyer paralegal draft a will or other legal document without assisting with the unauthorized practice of law, so too can a lawyer use a non-lawyer augmented system to do so. That, however, again raises the need for the lawyer to be competent with the work product of the service.

Conclusion

Thus, AI legal drafting shows immense potential in streamlining legal processes and managing the workload of professional lawyers. While current solutions target professional clients, there is a clear trajectory toward making AI drafting tools competent enough to handle non-complicated legal documents for the masses. This would simplify day-to-day transactions and reduce the reliance on lawyers for drafting tasks, while still emphasizing the importance of professional supervision and maintaining the ethical standards of the legal profession. By embracing the opportunities and addressing the challenges, AI can become a valuable tool in the legal field, benefiting both legal professionals and the general public.

Can You Automate Drafting Non-Complicated Documents With AI?

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Apr 28, 2022
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In the present scenario with ever-evolving contracts and complicated legal liabilities, one may question what may be the pathway for the future where the vision has to be of acquainting the masses with legal drafting skills in order to avoid the piling suits of litigation which overburden the judiciary thereby slowing down the process of dispute resolution. Artificial Intelligence (AI) emerges as a promising pathway to empower individuals with legal drafting skills, bridging the gap in access to legal services. Surprisingly, even in developed countries like the United States, as per a 2019 study conducted by the Massachusetts Institutes Of Technology, more than 50% of the middle class, lack access to legal services. 

This article explores the advancements made by AI in legal drafting and its future potential, offering an effective tool to combat unnecessary litigation.

Advancements in AI Legal Drafting

To begin with, one can analyze various software solutions which are currently present in the business world claiming to provide AI legal drafting solutions. For instance, cloud-based ANAQUA Studio, which is specifically designed for drafting patent documents using artificial intelligence. It is claimed to be the first patent application-drafting tool for lawyers that saves four hours on provisional patent applications and 20 hours on non-provisional types. The software is said to be able to detect document errors, circular claim references, and formatting defects aside from automatically generating literal claims support.

Apart from Anaqua, Seattle-based RoanPatent released SmartShell, an AI-powered software that supports paralegals in document reviews, AI drafting of legal documents, formatting, and identifying issues on patent applications. This software uses AI and natural language processing to assist in creating legal claims. The company claims to be doing for patents what Computer-Aided Design (CAD) did for architects and engineers – creating patent drafting tools to help professionals complete their goals more efficiently and with better quality.

From the above examples, it would be safe to assume that the companies currently are focusing on the Intellectual property field, specifically patents as far as the process of AI legal drafting is concerned. These companies use advanced Machine Learning tools to draft complex legal documents with the help of limited user input. Though the initial preference of the companies is in the field of Intellectual property for economic opportunities associated with the field, the transition to other fields would be quick to assume.‍


Business Models: From User-Friendly to Professional-Centric

One important trend concerning the business models adopted by many legal solution companies is that these platforms are designed to be ‘professional friendly’ rather than ‘user friendly'. The focus of these platforms is mainly on the companies and law firms that act as their permanent clients and use these AI drafting softwares for their day-to-day transactions. The primary reason which could have directed the companies towards this path could be their lack of confidence with respect to the algorithms. One reason for that could be the situation where these softwares themselves operate on the availability and the quality of standard documentation in specific areas of law. In fields, where there is no shortage of standard documentation, the process is made more efficient and quick. 

However, the platforms that cannot create their own standard documentation or model templates, still rely on the data and inputs provided by humans to a large extent. As a result, the cost of automation is harder to justify when the document in question isn’t used often enough. The first result is that smaller firms, which have less documentation capital at their disposal, are less likely to benefit from the marginal returns of the software and more likely to be deterred by its fixed cost.


Efficiency and Work Burden Management

Thus the current aim of AI legal drafting is mainly driven towards bringing efficiency and managing the work burden of professional lawyers. Premier Law Firms like Clifford Chance have their own AI-Driven drafting tools like ‘Dr@ft’ which, when used as the first pass and then have lawyers carry out some degree of quality control has the potential to save time ranging from 20% to 50% compared to traditional drafting methods.

With the efficiency that AI technologies bring for the lawyers there also comes the ethical dilemmas associated with outsourcing the client details which form an essential part of Attorney-Client Privilege, to a third party. An opinion from the American Bar Association addressed the issues that arise when lawyers outsource legal work to third parties to draft legal documents, and it specifically addressed outsourcing the preparation of patent applications. The ABA stated that among other things:

  1. the attorney must be competent to review the work and must remain responsible for the work.
  2. the fee must be reasonable,
  3. the lawyer may need to inform the client that the lawyer is using the services,
  4. client's confidence must be protected.
  5. the lawyer must take reasonable care to avoid conflicts of interest, and
  6. the lawyer must avoid assisting in the unauthorized practice of law. Hence, just as a lawyer can have a non-lawyer paralegal draft a will or other legal document without assisting with the unauthorized practice of law, so too can a lawyer use a non-lawyer augmented system to do so. That, however, again raises the need for the lawyer to be competent with the work product of the service.

Conclusion

Thus, AI legal drafting shows immense potential in streamlining legal processes and managing the workload of professional lawyers. While current solutions target professional clients, there is a clear trajectory toward making AI drafting tools competent enough to handle non-complicated legal documents for the masses. This would simplify day-to-day transactions and reduce the reliance on lawyers for drafting tasks, while still emphasizing the importance of professional supervision and maintaining the ethical standards of the legal profession. By embracing the opportunities and addressing the challenges, AI can become a valuable tool in the legal field, benefiting both legal professionals and the general public.

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