ChatGPT and The Future of AI in the Legal Industry

Gen AI and ChatGPT: Staying Ahead and Unlocking Opportunities in Wills, Estates, and Succession Law

Session Overview:

In this dynamic seminar we will delve into the world of Generative AI and ChatGPT, explore the transformative potential of AI technology in the legal profession, and discuss why it is crucial for lawyers to stay ahead of the curve

The session will provide practical guidance on using ChatGPT, and insights into the current and evolving state of AI in the law, offering valuable perspectives on the future of AI in the legal services industry

Showcasing different appetites and implementations in Australia and beyond, this session will culminate in a candid conversation with the CEO of Gilbert & Tobin on perspectives gained from his firm’s AI journey and the future of business-in-the-law

Session Outline:

1. Introduction: Generative AI and ChatGPT

• A Brief overview of Gen AI including ChatGPT

• AI and the legal industry – the four important questions you need to ask yourself, now

2. A Drive Behind the Wheel

• How to create a ChatGPT account and get started with the platform.

• Demonstrations of ChatGPT capabilities (with all relevant caveats) – current and potential future uses in private and professional lives, including examples relevant to Wills, Estates, and Succession Law

• Practical tips on engineering effective prompts to elicit the most useful responses.

• Ethical and regulatory considerations related to AI implementation (light touch, as our afternoon ethics seminar will take a deeper dive)

3. Navigating an Evolving Legal Landscape - The Importance of Staying Ahead in this New AI Era

• Why it is critical for all legal practices to ensure they adopt an informed and proactive approach, to remain competitive and relevant in a rapidly evolving industry landscape.

• Opportunity calls – how to embrace AI as a catalyst for positive change in your legal practice.

• Potential consequences of failing to adapt to AI advancements, including challenges and missed opportunities. Opportunity and risk management vs denial – the matrix that all legal practices will, as businesses, need to consider.

• Valuable strategies for staying informed and proactive in navigating the evolving legal landscape, ensuring we do not get left behind in the wake of competition

4. Showcase Time

• Firms that are already incorporating ChatGPT into their operations and legal practices and what they have to say - resulting benefits and challenges.

• Other experiments around the world.

• Risks that are materialising and legal actions on foot.

4. In the Spotlight

In an interview we will invite Gilbert & Tobin’s CEO Sam Nickless to share his insights and perspectives on:

• The current state of AI adoption in the legal industry; the potential for scalability and integration of AI-powered tools in the legal industry; AI advancements on the horizon; and the future of business-in-the-law

• The Gilbert & Tobin Journey – Incorporating ChatGPT - success stories and lessons learned from the implementation process

Audience Q&A

At the conclusion of this seminar the audience will be invited to ask questions, share experiences and express any concerns related to AI adoption and its implications for their practice.

BRAVENEWWORLD GENERATIVEAI

IMPACTONTHEFUTUREOFLEGALPRACTICE

CONFERENCEPAPERNOTES

ESLAudience:

Thefollowingslidesareanextendedsessionresource andwillnotbereferencedintheirentiretyduringthis AIsegmentoftheconferencetheyareincludedfor yourinformationandasageneralreferencetool only.

FrancescaBeattie,LawSocietyofTasmania

Predictions:

NEXTREVOLUTION?

AIsettoreplacemorethan40%ofalllegaltasks

RecenttechnologicaladvancesinAIwillhavea biggerimpactthanthechangesintroducedbythe internet

NEXTREVOLUTION?

PredictionsContinued:

difference.Mosttechnologicalinnovationstendtoaffectmanual ultimatelyimpactsknowledgeworkers,thewhite-collarworkingclass.

Asignificantportionoflegalserviceswillbecomecommoditised. Anexcitingperiodforlawyersandthelegalindustryasawholeso longasweremainaheadofthecurveball.

WHATAUSTRALIANFIRMSARESAYING

notreplacetraditionallawyers,thosetech-savvylawyerswhoknowhowtousethem HilaryGoodier,coSamNickless,ChiefExecutiveOfficeratGilbert+Tobin

AustralianFinancialReview,February9,2023

WHATAUSTRALIANFIRMSARESAYING

considerusingChatGPTaspartofourobligationtoactinthebestinterestsofour GenevieveCollins,chiefexecutivepartneratLander&Rogers

AustralianFinancialReview,February9,2023

LEGALSERVICESTOBECOMECOMMODITISED?

ProfessorRichardSusskindOBE-PresidentoftheSocietyforComputersand Lawand,since1998,hasbeenTechnologyAdvisertotheLordChiefJustice ofEnglandandWales.

legalservices.Hisbooksinclude:

TheFutureofLaw;

TheEndofLawyers?RethinkingtheNatureofLegalServices;and Tomorrow'sLawyers(2023)recommendedreading)

currentsituationandwhatitmeansforthefutureoflawyers,thebusiness oflaw,andhowweprovideourlegalservices?

FOURQUESTIONS

Requiringearlycriticalthought

1.Whereareweupto-whatarethecurrentemergingGenAI capabilitiesandwhatishappening,realtime,inthelegalindustry?

2.Wherewillthelegalindustrybein5years?

3.Wherewillmyfirm/department/legalpracticebein5years?

4.WherewillIbein5years?

BACKTOBASICS:WHATISAI?

ArtificialIntelligence(AI)

AIisaconceptofbuildingamachinecapableofthinking, acting,andlearninglikehumans.

WHATISGENAI?

GenerativeAI(GenAI)

GenAIdescribesalgorithms(suchasChatGPT)thatcanbeusedto createnewandoriginalcontent,includingaudio,code,images,text, simulations,andvideos.

Recentbreakthroughsinthefieldhavethepotentialtodrastically changethewayweapproachcontentcreation.

POWERFULRECENTBREAKTHROUGHS

AINOWBUILTTOSIMULATETHELEARNINGPROCESS OFTHEHUMANBRAIN

GenerativeAItypicallyinvolvesusingdeeplearningalgorithms thataretrainedonlargedatasetsofdata/existingcontent.

Deeplearningmachinelearningthatnowuseslayersof artificialneuralnetworkstomimicthelearningprocessofthe humanbrain.

POWERFULRECENTBREAKTHROUGHS

AINOWBUILTTOSIMULATETHELEARNINGPROCESS OFTHEHUMANBRAIN

Newandoriginalcontentidentifiespatternsandstructures withinthetrainingdata,learnsandmakespredictions.

Leadstonewandoriginalcontent,aswellasnewand originalideasandsolutions.Capableofcreatingitsown algorithms.

CHATGPT

GenAI;appbuiltbyOpenAI

Currentmodels-GPT3andGPT4

MostpopularLargeLanguageModels(LLMs)

Othercompetitors

Whatcanitdo?

WHEREISGPTUPTO?

LatestVersionofChatGPTacesbarexamwithscorenearing90thpercentile https://www.abajournal.com/web/article/latest-version-of-chatgpt-acesthe-bar-exam-with-score-in-90th-percentile

DifficultexamsGPT-4haspassedsofar: https://www.businessinsider.com/list-here-are-the-exams-chatgpt-haspassed-so-far-2023-1

SampleAustralianexperience:

https://www.linkedin.com/pulse/i-gave-chatgpt-4-spec-accred-family-lawexam-harry-mcdonald

WHEREISAIHEADEDINTHENEXT5YEARS?

SOMEOFTHELEGALSERVICESEXPECTED TOBECOMECOMMODITISED

Somelegalservicesthatcouldbemorewidelycommoditisedby2030 (likelymuchearlier)include:

1.ContractReviewandDrafting:AI-poweredlanguagemodelscan helpautomatethereviewanddraftingofstandardcontractsandother legalinstruments,identifyingpotentialissuesandsuggestingclauses basedonpredefinedcriteria.

2.LegalResearch:AIsystemscanassistlegalprofessionalsin conductingextensivelegalresearch,rapidlyretrievingrelevantcase law,statutes,andlegalprecedentstosupportlegalarguments.

SOMEOFTHELEGALSERVICESEXPECTED TOBECOMECOMMODITISED

3.DueDiligence:AIcanstreamlineduediligenceprocessesbyanalysinglarge volumesofdata,extractingrelevantinformation,andidentifyingpotentialrisks oranomaliesincontractsoragreements.

4.DocumentAutomation:AI-basedtoolscanautomatethecreationoflegal documents,suchaswills,trusts,andotherroutinelegalforms.

SOMEOFTHELEGALSERVICESEXPECTED TOBECOMECOMMODITISED

5.ComplianceandRegulatoryAnalysis:AIcanassistinmonitoringchangesin lawsandregulations,ensuringcompliancewithevolvinglegalrequirements.

6.LegalAnalytics:AI-poweredanalyticscanprovideinsightsintocase outcomes,judgebehaviour,andlitigationtrends,helpinglawyersmake informeddecisions.

Morepowerfully,oncehousedinasecureenvironment,youwillbeableto leverageoffyourowncaptureddata(clients,cases,variables)andobtain summaries,andstructuredandinnovativeinputonassessmentsandadvice.

WHEREWILLMYFIRM,DEPARTMENTOR ORGANISATIONBEIN5-10YEARS?

TherapiddevelopmentofAI-driventoolsoffers lawpracticesahostofopportunitiesforbringingnewlevels ofefficiencytooperations.

Foodforthought:towhatextentwillyourbusinessand/or practiceneedtoreinventitselftomeet expectationsandremaincompetitive?

WHEREWILLIBEIN5YEARS?

AIwillnotreplaceyou,but thepersonusingAIwill

LIKELYMOSTPOPULARMODELS

Opensource(largerfirms)

Smallertomediumsizedpractices:Productlicensingindustry-specificproducts/packagesthatyouwillpaya

withtheuploadofyourownconfidentialdata(data securelyhousedwithinpractice)totrustjustasyoucurrently trustOutlook,Office365,Leap,Affinity,etc.

Inthemeantimestartcleaningyourdataandgettingit readyasap

OTHERTOPICSFORDISCUSSION ANDQ&A(TIMEPERMITTING)

Plagiarism-isAIcontentplagiarismfree?

CouldLegalProfessionalPrivilegebewaived?Third partyproviderconsiderations

Rethinkinglegalservicesinprivatepracticeand otherpartsoftheindustry

Usesinlawschool

Regulation

GPT3.5:

RETHINKINGLEGALSERVICESIN PRIVATEPRACTICE

AsAIbecomesmoreprevalentinthelegalindustry,firmswillindeed needtorethinktheirservicesandpricingstrategiestoremain competitiveandadapttochangingclientexpectations.Removingthe billablehourcanbeatransformativesteptoenhanceclient satisfaction,fosterinnovation,andprovidemoretransparentand predictablepricing.

RETHINKINGLEGALSERVICESIN PRIVATEPRACTICE

Herearesomeproductideasandpricingstrategiesthatfirmscan consider:

Fixed-FeeServices:Offerfixed-feepackagesforspecificlegalservicesorcommon legalmatters.Clientswillappreciatetheclarityofupfrontpricing,whichreduces uncertaintyandpromotestrust.

Subscription-BasedServices:Introducesubscription-basedmodelsthatprovide clientswithongoingaccesstolegaladviceandservicesforasetmonthlyorannual fee.Thisapproachcanbeespeciallyattractivetobusinesseswithongoinglegal needs.

Outcome-BasedPricing:Alignpricingwiththeresultsachievedfortheclient.Firms cannegotiateafeestructurebasedonsuccessfuloutcomesormilestones, incentivisingbothpartiestoworkcollaborativelytowardtheirsharedgoals

RETHINKINGLEGALSERVICESIN PRIVATEPRACTICE

Value-BasedPricing:Determinefeesbasedontheperceived valueoftheservicetotheclientratherthanthetimespent. Thisapproachrewardsefficiencyandinnovation, encouragingfirmstofindinnovativesolutionsthatdeliver tangiblevaluetoclients.

ProductisedLegalServices:Packagelegalservicesinto standardised,ready-to-useproducts.Forexample,creating templateagreements,legaldocuments,orcompliance packagesthatclientscanpurchaseonline.[Ormoreholistic carefordiscussion]

RETHINKINGLEGALSERVICESIN PRIVATEPRACTICE

AI-PoweredSelf-ServicePlatforms:DevelopAI-driven platformsthatempowerclientstohandleroutinelegal tasksthemselves.Thisnotonlyreducescostsbutalso providesconvenienceandcontroltoclients.

MembershipPrograms:Offertieredmembership programswhereclientspayamonthlyorannualfeeto accessvariouslegalresources,advice,andservices.

RETHINKINGLEGALSERVICESIN PRIVATEPRACTICE

LegalTechConsulting:Provideconsultingservicestoclientsonhowto leveragelegaltechnologyandAItoolseffectively,helpingthemoptimise theirownlegalprocesses.

TransparentCostEstimation:Providedetailedandtransparentcost estimatesforvariouslegalmatters,givingclientsaclearerunderstandingof potentialexpenses.

RETHINKINGLEGALSERVICESIN PRIVATEPRACTICE

Itiscrucialforfirmstoproactivelycommunicatenewpricingstrategiestoclients, emphasisingthebenefitsofpredictability,transparency,andvalue-addedservices.

Additionally,engaginginongoingfeedbackwithclientswillbeinstrumentalinfinetuningthesenewapproachestomeetevolvingmarketdemands.

ByembracinginnovativepricingmodelsandleveragingAItechnologieseffectively, firmscanpositionthemselvesasforward-thinkingandclient-centricleadersinthe

GETTINGSTARTEDINYOUR FIRM/ORGANISATION

Considerfirm/organisationguidelinesandanenterprise-widestrategyonthe adoption+clearframework(maybephased)

Introductionandtraining

Staffonboarding/teambuilding:Identifyingusercases

Collaborationandfeedback

DataSecurityMeasures

ComplianceandEthicalConsiderations

AccessandPermissions

Updatesandmonitoring

DEPARTMENTORORGANISATION

1.LegalResearchAssistance:IntroduceChatGPTasatooltoassistlawyersin legalresearchbygeneratinginitialcaselawsummariesorsummarising lengthydocuments.

2.DocumentProofreading:UseChatGPTtoproofreaddocumentsandidentify potentialerrorsorinconsistencies(stayingwithinfirmpracticeguidelinesand

infrastructureputinplace).

3.ClientFAQs:CreateaChatGPT-basedsystemtoanswercommonclient questions,providingquickandaccurateresponses.

DEPARTMENTORORGANISATION

4.DraftingAssistance:EmployChatGPTtoassistindraftingroutinelegal documents,suchascontractsoragreements.

5.OngoingMonitoringandImprovement:

ContinuouslyassesstheeffectivenessandsecurityofusingChatGPTinthefirm. Stayinformedaboutupdatesandimprovementsinthetechnologytoensure optimaluseandsecurity.

Whichcampareyouin?Oneorboth(ifany)?

Automationanxiety vs AugmentationAspiration itwillaugmentmy capabilities,freeupmytimeandimprovethequalityofmyservices)

LASTWORD

RememberthatwhileChatGPTisapowerfultool,itisnotasubstituteforlegal expertise(fortheimmediateforeseeablefuture).Lawyersshouldalwaysexercise professionaljudgmentandreviewoutputsgeneratedbyAItoolstoensureaccuracy andcompliancewithlegalstandards.

Byadoptingacautiousandthoughtfulapproach,yourfirmcanembracethebenefits ofAItechnologywhileupholdingclienttrustanddatasecurity.

Tip:Inthenextthreemonthsgetyourinternalrulesandguidelinesinplace,together withastrategyandroadmap.Forthosefirmsalreadycapturingelectronicallytheir clientdataaswellaselectronicallyconvertingpaperfiles:startcleaningyourdata/ startdigitallycapturingyourcurrentand historicaldataandensureyoudoitinabroadlyuseableway.Investinknowledge,IT andonboarding.