Legal Management
Law firms’ fears about risks posed by using artificial
intelligence intensifying
A growing number of law
firms are turning to artificial
intelligence as a means of
increasing efficiency, providing
a better service to clients, and
freeing up lawyers’ time to
concentrate on more complex
tasks – however, the use of
such technology is also giving
lawyers sleepless nights as
they worry about the potential
threat it poses as it leaves
firms increasingly vulnerable to
cyberattacks by hackers
Though the use of artificial
intelligence (AI) among law
firms is on the increase it is also
causing considerable concern
among lawyers and their clients,
specifically in relation to cyber
security, data protection and
confidentiality, attendees at an
event organised by The Latin
American Lawyer in Mexico heard.
Such risks are inevitable
given the fact that information
is shared during legal processes
and, consequently, law firms are
a particularly attractive target for
hackers, according to panellists
at the event, which was held in
collaboration with Greenberg
Traurig and EY Law. The panel
heard that there are two types
of companies, “those that have
suffered a cyberattack, and those
that will”. Therefore the use of
technology by law firms means
that it is essential that firms adopt
solid governance structures, and
invest in employing staff that are
adept at using technology. Human
error in the use of AI will continue
to be a cause for concern as
Event: How can general counsel
leverage technology throughout
the M&A and transactions
lifecycle?
Location: Mexico City
In collaboration with:
Greenberg Traurig and EY Law
Lawyers speaking at the Mexico City event said artificial intelligence “identifies
risks better than a team of lawyers can”.
reliance on technology increases,
panellists heard, and an AI system
will never be held culpable for
not identifying risk, as software
is only as good as the lawyer
who uses it – it is the lawyer that
designs the M&A transaction for
the client. AI is making substantial
inroads into the legal profession
with the implementation of
software and applications that aim
to lighten law firms’ workloads,
participants in the event heard.
While an increasing number of
law firms are using AI software
to carry out tasks such as due
diligence – employing software
such as HighIQ and Intralink –
its use is also increasing in other
aspects of M&A deals, such as the
document negotiation phase and
the deal signing and closure stage.
In this context, software such as
Luminance is a major time-saver
for lawyers, due to its ability to
16 • THE LATIN AMERICAN LAWYER • December 2018
scan and review large volumes of
contracts, attendees were told.
“AI identifies risks better than
a team of lawyers can,” according
to event participant Víctor Manuel
Frías, a lawyer and shareholder
at Greenberg Traurig in Mexico
City. However, he added that AI
is intended to complement the
work of lawyers and help them
to streamline processes, and it
should not be seen as a tool that
replaces staff. AI’s ability to take
care of the more mundane tasks
necessary in any transaction
allows lawyers to focus on
strategic decisions as well as
developing the know-how that
will improve their relationships
with clients, panellists heard.
Adverse effect on lawyer-client
relationships?
AI use by law firms is expected to
increase substantially in the short
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