AI systems outperform human lawyers at reviewing legal docs, and that’s a good thing

By Heather Hamilton, contributing writer

While artificial intelligence is quickly proving itself across many industries, humans maintain a slight edge in some — though these, too, are being quickly narrowed down. In a surprising study from LawGeex, which reviews contracts via AI, AI is outperforming human counterparts in law. The study specifically looks at AI performance in reviewing non-disclosure agreements.

The study asked 20 human attorneys and AI to review five NDAs and simulated conditions that attorneys might work under in traditional contract approval scenarios. Two months of testing revealed an AI with 94% accuracy, while the human counterparts clocked in at only 85% accuracy. At its best, the AI was 100% accurate on a single test, while the highest score an attorney achieved was 97%. While a lawyer took an average of 92 minutes to review a contract (as high as 156 minutes and as low as 51 minutes), the AI required 26 seconds. The attorneys involved in the study were not law students or even new graduates — they were experienced lawyers.

Grant Gulovsen, one of the attorneys who reviewed contracts for the study, told Mashable that the work was similar to what lawyers do every day.

“The majority of documents, whether it’s wills, operating agreements for corporations, or things like NDAs, are very similar,” he said.

In a press release, professor of law and economics at the University of Southern California Gillian K. Hadfield explained that the difference may be even larger than the numbers initially indicate.

“This experiment may actually understate the gain from AI in the legal profession,” she said. “The lawyers who reviewed these documents were fully focused on the task: It didn’t sink to the bottom of a to-do list; it didn’t get rushed through while waiting for a plane or with one eye on the clock to get out the door to pick up the kids.”

Futurism points out that AI is also leading the charge in areas like medicine, in which AI systems are out-diagnosing both heart disease and lung cancer, as well as eye disease. They go on to describe AI achievements in earthquake detection and Olympic judging. And, while many of these areas represent relatively uncharted territory for AI, the research is promising.

So should practicing attorneys start looking for new jobs? Hardly, say experts. Instead, humans should look at ways to maximize efficiency by working with artificial intelligence, which will never be able to replicate everything that a lawyer does.

Erika Buell, a clinical professor at Duke University School of Law and study consultant for LawGeex, told Mashable that she agrees.

“I strongly believe that law students and junior lawyers need to understand these AI tools and other technologies that will help make them better lawyers and shape future legal practice,” she said. “I would expect that the general public, to the extent that they want their lawyers to work efficiently on their legal matters, will be excited about this new tool.”

And who knows — maybe there will be a cost savings passed along to you, the consumer.

Sources: LawGeex, Mashable, PRNewswire, Futurism
Image Source: Pixabay