A recent global business survey has predicted that well over half of in-house legal departments will have AI systems set up over the next year, with an aim that it will help with analysing and reviewing contracts.
US analyst Ari Kaplan Advisors, acting for Seal Software – a supplier of AI-based contract review systems, found that 37% of respondents already review contracts and agreements with the assistance of AI.
Of those who do not, 47% say it is ‘likely or highly likely’ that their organisation will implement software in the coming year.
The main use of AI seems to be to comply with data privacy legislation including the EU General Data Protection Regulation, with 55% of respondents saying they had implemented the system for this purpose.
Another use for AI appears to be helping identify inconsistencies in agreements. It is adopted during the negotiation stage to ensure compliance with updated regulations, such as anti-money laundering laws and Brexit.
AI is not something companies “buy” and then “launch”. It is something which needs to be implemented, with teams being trained in how to use it effectively.
Another misconception is that it will replace a human lawyer. ‘There will still need to be human input and human review in the system,’ one respondent said, ‘probably forever.’