Responsible Use of AI in Legal Contract Workflows

As discussed in an article by Malbek’s Jonnie Castorino, contract management has been transformed in recent years with the responsible use of AI in legal contract workflows. Legal ops professionals need to ensure AI is utilized ethically by understanding its capabilities and limitations.

To use AI responsibly in legal workflows, set clear objectives, aligning AI adoption with the organization’s goals. Expectations about AI’s capabilities should be realistic, recognizing that while AI can automate tasks, human oversight is still necessary. Relying solely on AI can lead to errors and potential legal risks, emphasizing the need for legal professionals to apply their expertise in conjunction with AI.

Data privacy and security are paramount, as legal contracts often contain sensitive information. Legal ops professionals need to ensure that their AI vendors guarantee that client data is handled securely and confidentially and that they comply with data protection regulations. They should also work with IT and security teams to ensure robust protection measures, including encryption and security threat monitoring. 

AI model training and maintenance are also crucial for continued effectiveness. High-quality, diverse data is necessary for accurate AI predictions, and models must be regularly updated to reflect changes in legal practices. If this maintenance is neglected, it can result in flawed outputs and erode trust in AI tools.

In selecting an AI contract management solution, legal teams should prioritize comprehensive features covering the entire contract lifecycle, leverage advanced technology, and adapt to specific legal needs and business objectives. Make sure the selected platform employs industry-standard security measures, complies with relevant data protection regulations, and provides transparent data handling practices. 

By balancing AI’s capabilities with human judgment, legal teams ensure responsible use of AI in legal contract workflows, enhancing contract management processes, improving strategic decision-making, and maintaining compliance, ultimately driving better outcomes for their organizations.