The Rise of Generative AI in Legal Matters: A False Economy for Clients?
We have observed a trend in the use of AI. It is understandable that people will always be keen to reduce legal costs. As Generative artificial intelligence (GenAI) tools are rapidly becoming part of everyday life. From drafting emails to summarising documents, these tools promise convenience and efficiency. It is unsurprising that some individuals have begun using AI platforms to generate legal documents or amend draft orders before presenting them to a solicitor for “review”, in an effort to reduce legal costs.
However, what may initially appear to be a cost-saving measure can backfire. In many cases, using GenAI in this way creates additional financial risk, practical complications, and confidentiality concerns. We have already written about some of the issues faced by others in litigation due to the use of A and confidentiality law is one of the key main privilege and benefits of using a lawyer.
The False Economy of AI-Generated Legal Documents
In legal practice, accuracy, jurisdiction, and context are critical. Legal documents must reflect the correct law, procedural requirements, and factual circumstances of the matter.
Generative AI tools, however, are not trained to provide tailored legal advice. They produce outputs based on patterns in large datasets and may generate information that appears credible but is incomplete, outdated, or simply incorrect. In a legal context, this phenomenon is often referred to as “AI hallucination”, essentially, a system confidently produces information that has no legal basis or authority.
When a client presents AI-generated documents to a solicitor for review, the solicitor must first determine what parts of the document are legally accurate, which parts are irrelevant, and which parts are incorrect altogether. In practice, this can mean the solicitor must effectively untangle and reconstruct the document before it can be used.
The result is that the review process may take significantly longer than if the solicitor had drafted the document from the beginning. Most solicitors have precedent banks already and are highly trained in how and when to utilise these. The client may believe that providing an AI generated document for the solicitor to review would save time for the solicitor, and in turn, costs for the client. Although, this is rarely the case, if at all. Most often, the costs can blow out of proportion since the solicitor may have to spend twice as long to review the document than if they had drafted the document in the first place and can identify the source of the information.
Confidentiality and Privilege Risks
Another significant concern arises when individuals input sensitive information into public AI tools.
When using a public AI chatbot, users may unknowingly upload confidential material such as legal advice, timelines, allegations, or strategic information relating to their case. Once entered into the system, that information is not protected in the same way as communications with a solicitor.
Recent developments in the United States highlight this risk. In one federal case, a court considered whether notes and legal strategy documents created using a public AI chatbot were protected in the same way as communications with a lawyer, which is referring to Legal Professional Privilege.
The court concluded they were not.
Because the materials had been generated through a public AI system rather than through confidential lawyer client communications, they were not protected by legal privilege. As a result, those materials were able to be reviewed when they were later obtained in legal proceedings.
Although the case arose overseas, it serves as a timely reminder that public AI tools are not lawyers, and information entered into them may not be treated as confidential in the same way as communications with legal counsel. This is especially true when the non-publication orders are in effect under the Family Law Act 1975 (Cth). Material that are relevant to a family law matter may not be published.
AI is a long way off from being an effective tool
Artificial intelligence will continue to evolve and may eventually play a more structured role within the legal profession. Many law practices are already exploring controlled, secure applications of AI to assist with research, administrative tasks and document generation. These savings are often passed onto the client already. These platforms have been developing and evolving over many years.
However, there remains an important distinction between professional tools used within a regulated legal environment and publicly accessible AI platforms used without legal oversight.
Legal documents are not simply templates. They must be drafted with an understanding of the applicable legislation, procedural rules, court practices, and the individual circumstances of the client. AI systems cannot replicate that professional judgment.
Conclusion
Using AI to generate or amend legal documents can introduce inaccuracies, increase legal costs, and create risks relating to confidentiality and privilege. What appears to be a shortcut can ultimately complicate a matter further and end up costing you, the client, more.
If you have questions about legal documents or require assistance with drafting or reviewing orders, it is important to seek advice directly from a qualified legal professional, such as our solicitors at Voice Lawyers.
We regularly assist clients with workplace law and in navigating complex family law matters and ensure that documents are prepared accurately, efficiently and in accordance with Australian law. If you require assistance, our team is available to help. You may reach out to us on 02 9261 1954 or peruse our website for more information and to book an initial consult with one of our experienced lawyers.