How Retrieval-Augmented Generation Transforms the Legal Industry

January 26, 2025

How Retrieval-Augmented Generation Transforms the Legal Industry

A Thomson Reuters blog reports that retrieval-augmented generation (RAG) is transforming the legal industry. This AI framework integrates generative artificial intelligence with domain-specific data retrieval, leveraging the vast body of legal documents. 

RAG retrieves documents from a search engine and uses them to input into large language models. Thus, the answer is grounded in authoritative sources instead of solely relying on the LLM’s memory, which reduces errors and ensures trustworthiness in data retrieval.

AI legal research tools use RAG to focus AI on actual legal texts rather than relying solely on pre-trained model memory, thus ensuring dependable insights. RAG preprocesses legal documents, improves contract analysis, and supports the summarization of legal documents. However, LLMs risk generating unreliable outputs without grounding, underscoring RAG’s importance. 

When evaluating legal research tools that utilize RAG, it is crucial to ensure they rely on high-quality data and that their models undergo rigorous testing and benchmarking to ensure accuracy. The quality and relevance of the initial document retrieval play a critical role in shaping the generated output. Additionally, both RAG and LLM components must be carefully analyzed and weighed when evaluating legal-specific generative AI assistants.

Retrieval-augmented generation enables legal professionals to perform tasks more efficiently and accurately, underscoring its potential to redefine legal research, drafting, and advisory services.

Critical intelligence for general counsel

Stay on top of the latest news, solutions and best practices by reading Daily Updates from Today's General Counsel.

Daily Updates

Sign up for our free daily newsletter for the latest news and business legal developments.

Scroll to Top