The Ethical and Regulatory Concerns of Using AI in the Legal Sector

Ethical and regulatory concerns about using AI in the legal sector are becoming increasingly significant. To assist industry professionals, the Thomson Reuters Future of Professionals report surveyed over 1,200 professionals in legal, risk, taxes, accounting, compliance, and global trade, as discussed in a blog post on Thomson Reuters’ website. 

According to the report, 67% of respondents expect AI to have a transformational or high-impact change in their profession within the next five years. Not only are legal ops professionals in law firms and in-house legal departments optimistic about AI’s ability to handle large-scale data analysis and administrative tasks more accurately but AI can also provide insights that help in making more informed strategic decisions.  

The need for AI regulation is recognized by 93% of the professionals surveyed, with concerns about trust and accuracy predominant. Many professionals fear significant damages if AI is not properly managed; and there is a growing emphasis on regulating AI to address usage, privacy, and communication concerns. Over half of law firms and 43% of corporate legal departments support industry-level regulations for AI ethics and establishing AI usage, privacy, and communication policies. 

Regulatory activity is accelerating, exemplified by President Joe Biden’s executive order on AI issued October 30, 2023, which seeks to balance AI’s benefits with its risks. Other regulatory efforts include the proposed American Data Protection and Privacy Act and the EU’s AI Act, intended to provide a regulatory framework for global AI governance.

Ethical concerns also persist, with some fearing that AI might compromise ethics. Legal operations professionals must ensure AI outputs are accurate, reliable, and ethically permissible. As technology and the regulatory landscape continue to evolve, navigating the ethical and regulatory concerns of using AI in the legal sector will present new challenges regarding AI-related decisions and compliance.