The development of AI technology provides an opportunity for lawyers to improve their efficiency, reduce costs and focus on more strategic work. AI can handle mechanical and routine tasks like document and contract review, legal research and data analysis. This can ultimately lead to increased productivity and profitability for law firms. However, AI is not yet capable of handling more complex tasks such as deal structuring, negotiation, advocacy and representation in court. As a result, the use of AI may decrease billable hours for law firms. While larger firms may have the means to implement AI systems, smaller firms may struggle to keep up with the cost of technology and remain cost-effective.
