Technology has always promised to make business easier and AI is taking that promise even further by being fast, fluent, and confident.
ChatGPT has rolled out new rules on how it will handle requests for legal advice – spoiler, it won’t. And while ChatGPT and other LLMs correct their course on doling out legal advice, there is still a wealth of information available that will require the user (even savvy business owners) to exercise caution.
Information vs Judgment
AI gathers and organizes information.
Lawyers interpret, apply, and anticipate outcomes. Unlike a trusted advisor, AI doesn’t know your company’s risk tolerance, the nuances of a jurisdiction, or how opposing counsel may approach a case. AI can’t weigh real-world consequences or read the room in negotiations or court.
Judgment doesn’t come from an algorithm, it comes from context, experience, and accountability.
The Law Keeps Moving While AI Looks Back
The law evolves daily. AI learns from the past. Relying on AI alone is like navigating today’s traffic while looking at traffic congestion patterns from last week’s map, and the ever-present construction zone moved. An LLM might summarize a regulation accurately, but it won’t catch that new ruling or unpublished decision that changes how the rule applies in a given courtroom or jurisdiction.
Accountability
When a lawyer provides advice, there’s accountability in professional, ethical, and reputational ramifications. When AI provides “advice” there are no ramifications. There’s no license, no oversight, and no responsibility if it steers you in the wrong direction.
If a mistake happens, it’s your company, not the LLM, that pays for it.
Tips to Use AI Responsibly
Smart businesses don’t ban AI; they set guardrails. Here’s how to use it wisely:
- Use AI for preparation, not decision-making. Let it summarize or draft, but always have a lawyer review before anything goes out the door.
- Keep confidential data secure. Never enter proprietary terms, party names, or deal details into public AI tools. Use secure, enterprise platforms.
- Trust, but verify. Treat AI results like a first draft from a new associate, helpful, but never final. Same goes if you use a secure, enterprise platform even if it’s a well-known name in the legal field. These platforms may reduce “hallucinations” (for the uninitiated, hallucinations are when AI creates a case, rule or law that simply does not exist, but it looks and reads real) and other common AI pitfalls, but the platforms themselves instruct their users to verify everything.
- Reinvest your time savings. Use the efficiency gains to focus on strategy and risk management.
- Stay skeptical of certainty. AI sounds confident even when it’s wrong. Lawyers know when to dig deeper.
The Partnership Approach
At Carlson Dash, we encourage clients to embrace technology, but always within the guardrails of judgment and accountability. AI is a powerful tool, but it’s only as effective as the professional guiding the tool. Would you let me build your house because I have power tools and a YouTube subscription?
The future of law isn’t man vs machine, it’s man using the machine, but always leading with judgment, integrity, and experience that no algorithm can replicate.
This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
Kurt concentrates his practice on representing clients in corporate matters, business disputes, corporate workouts, and business bankruptcy cases. Kurt has extensive experience in a broad range of legal and business issues that companies must address in order to successfully navigate the marketplace, from the boardroom to the courtroom. If you need assistance with a related matter, contact Kurt.