How the use of AI in legal services evolved: A year in review

In 2023, artificial intelligence (AI) has revolutionized multiple global industries, for example:  

•  AI-powered healthcare tools are advancing diagnostics and treatment 
• Financial institutions employ AI algorithms for enhanced security and fraud detection 
• Manufacturing sees increased efficiency through AI-driven automation 
• Education benefits from personalized learning experiences tailored by adaptive algorithms 
• Customer service chatbots are virtual assistants are being refined by natural language processing (NLP) technology  
• Environmental monitoring is using AI to track climate change.  

Here are some notable updates from 2023 in the legal profession.

Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence 

President Joe Biden’s executive order, issued on October 30, 2023, outlines key principles and guidelines for the development and use of AI in the United States. The order aims to balance the benefits of AI with potential risks, such as bias, discrimination, and privacy concerns. It directs federal agencies to establish standards for AI safety and security, protect privacy through legislation, address discrimination in AI algorithms, and ensure responsible AI use in healthcare and education. 

For the legal sector, the Executive Order presents both opportunities and challenges. Legal professionals will need to advise clients on AI-related legal issues, including compliance, liability, intellectual property, contracts, ethics, and human rights. At the same time, they must integrate AI systems into their own practices, such as document review, research, and analysis.  

BCG research into AI integration  

The integration of artificial intelligence (AI) into business operations requires a nuanced approach, as revealed by a study involving 750 Boston Consulting Group (BCG) employees. Generative AI accelerates specific tasks, such as idea generation, by 25% and improves quality by 40%. However, in more intricate problem-solving tasks, it is less successful, reducing the likelihood of correct answers by 19%. In the latter, human consultants outperformed AI by wide margins. The study recommends an experimental