In this month's edition of The Chartwell Chronicles, we explore a hot topic that is rapidly gaining attention across many industries, including law: artificial intelligence (AI). Chartwell Law, with its presence in multiple jurisdictions, is deeply involved in these conversations. Today, we discuss AI's implications in the legal field with insights from Hema Mehta, an Equity Partner at Chartwell.

Hema brings significant experience in insurance coverage and bad faith litigation, practicing out of Chartwell’s Philadelphia office. Licensed in both Pennsylvania and New Jersey, Hema has been engaging with AI and its ethical implications in the legal sector for over a year. She frequently conducts webinars on this subject, particularly focusing on legal ethics and the use of tools like ChatGPT.

Artificial Intelligence in Legal Practice

Hema explains that many questions about AI start with the basics: “What is artificial intelligence?” Many people are unaware of its long-standing pervasive presence in everyday life. AI, in essence, involves machines performing tasks for humans rapidly and efficiently. It's already embedded in technologies that we use daily like Alexa and Siri, as well as in self-driving cars. She shares a personal anecdote in which her husband’s LinkedIn suggested a contact he had only discussed during a luncheon — illustrating AI’s integration into daily routines.

Hema notes that AI also aids in practical applications such as marking emails as spam, handwriting recognition, and eDiscovery software. These applications demonstrate AI's ability to streamline tasks that would otherwise require significant human effort. For example, eDiscovery software can quickly sift through vast amounts of data to identify relevant information for legal cases, significantly reducing the time and cost associated with document review.

Additionally, AI's ability to recognize patterns and predict outcomes can be a valuable initial tool in generating ideas, developing legal strategies and anticipating opposing counsel's moves. This utility illustrates the massive potential of AI in the legal profession and beyond.

Misconceptions about AI

A common misconception about AI is its portrayal in science fiction, often seen as something potentially ominous like Skynet from the Terminator series. Hema offers a more grounded perspective, comparing AI to the helpful nanobots from "Big Hero 6," showcasing that it’s not as menacing as popular culture sometimes suggests.

AI in Legal Research and Ethics

As AI technology advances, its applications in legal research are becoming more sophisticated. Hema explains that AI operates through algorithms that predict answers based on extensive data. "AI is improving and learning from every interaction," she says. However, it lacks a conscience and relies purely on statistical predictions, which can sometimes lead to errors.

Accuracy and reliability are significant concerns. Hema recalls the case of Roberta Mata vs. Avianca, where an attorney used ChatGPT to draft a brief that cited non-existent cases, resulting in a $5,000 sanction. This incident highlights the necessity for lawyers to verify AI-generated content thoroughly before submission.

Benefits of AI

Despite the many challenges, AI offers substantial benefits, particularly in document summarization and idea generation. "AI can be a valuable tool for creating initial drafts and summaries, but it’s crucial to cross-check the information before using it in official legal documents," Hema advises. Furthermore, AI's ability to analyze large datasets can provide insights that might be missed by human reviewers, enhancing the thoroughness and accuracy of legal analysis.

Future of AI in Law

While AI can enhance efficiency in legal research and document preparation, it cannot replace the nuanced judgment and problem-solving skills of human attorneys. Hema asserts, "AI can assist with the procedural aspects of legal work but cannot replicate the critical decision-making required in the practice of law.”

Confidentiality and data security are paramount in legal practice. Hema emphasizes the ethical concerns related to uploading sensitive information to AI tools. “There are significant risks regarding where this information is stored and how it is used,” she notes.