Previously, I spoke about how artificial intelligence has been here for a long time and how lawyers can use it to help them practice law and run their firms more efficiently. Now, we will focus on how lawyers can use AI well and integrate it into their practice, as well as what they can expect in the future.

Tips for using AI well

Using AI effectively requires more than just asking questions like you would in Google. Here are some tips to make AI work better for you.

  • Have a conversation: Engage with the AI as if you’re having a conversation. Provide context, and ask follow-up questions. For example, instead of saying, “Draft a motion for me,” say, “Imagine you are a plaintiff’s attorney in Washington. Your client has the evidence in this document, what facts support a motion for summary judgment?” “I want you to draft a motion for summary judgment using those facts but also using the following facts.” “Rewrite it, and this time focus more on the burden of proof.” You get the idea.

  • Prompt engineering: Crafting good prompts is crucial. Be specific about what you need, and provide clear instructions. For example, instead of saying, “Draft a contract,” you might say, “Draft a nondisclosure agreement for a technology company, including clauses on confidentiality, noncompete and intellectual property.” The more information you give the AI, the better your results. One helpful structure for prompts is to always include role (who you want the AI to act as), context (why you are making this inquiry), assignment (what you want it to do) and follow up (telling AI to ask you questions to better understand the prompt).

  • Iterate and refine: Don’t expect perfect results on the first try. Iterate on your prompts, and refine them based on the outputs you receive. If the AI’s response isn’t quite what you were looking for, provide additional context or rephrase your question. You can even have the AI ask you questions before providing a response to improve the answers.

AI’s impact on your practice

AI will revolutionize various aspects of legal practice. One of the most startling findings from the 2024 Clio Legal Trends Report is that AI can automate up to 74% of the work for which legal professionals currently bill. This includes tasks such as information gathering, data analysis and document preparation. This significant reduction in billable hours suggests that law firms have to rethink their billing models and consider alternative fee arrangements to remain competitive and profitable.

Consider offering flat fee services, so that you can past the savings of efficiency on to your clients and keep some of that benefit for yourself. For example, AI can handle document review, legal research and client communication, allowing you to provide predictable pricing for clients. Clients appreciate the transparency and predictability of flat fees, which can lead to increased trust and long-term relationships. It can also incentivize clients reaching out before problems become large and expensive to resolve.

Explore new service models. A growing number of states have approved entity regulation programs that are designed to encourage alternative models for delivering legal services like Erin Levine’s Hello Divorce or Ty Brown’s ZAF Legal. AI can enable innovative approaches to legal services, such as tiered services or on-demand legal advice. You may not have the time to help more people, but you could design an AI in partnership with someone that could.

Even if you don’t want to change the structure of your firm, use AI to improve the firm you already have. Provide faster responses and more personalized services to your clients. For example, AI-powered chatbots can answer client inquiries 24/7, providing immediate assistance and improving client satisfaction. The Clio Legal Trends Report notes that technology investments, including AI, deliver real ROI by enhancing client communication and driving revenue. AI tools can streamline operations, reduce response times, and provide clients with a seamless experience.

Future trends

The technology we see today is just the beginning. Whatever errors we see in AI right now, we must not forget that what we see today is the worst and the most expensive that this technology will ever be. The future is coming, and we have to be the ones who build the future we want. AI will drastically increase efficiency in the delivery of legal services, so there are only three potential futures for our industry.

  1. We say no to AI: If lawyers don’t embrace AI, the public will. Already people are turning to Google and ChatGPT for help because they can’t afford a lawyer. As these tools improve, our monopoly on legal services will dwindle, and the public will get worse legal services.

  2. We use AI but don’t make changes: If lawyers just add AI to the current business model, then firms will need fewer associates, the legal training pipeline will shrink, and we’ll have fewer lawyers and no increased access to legal services.

  3. We use AI to expand the market: If AI can increase our efficiency, then we have the capacity to serve more people. A lot of people don’t want lawyers though, so we have to think about what services they do want. We have to be the person they turn to instead of Googling, “What to do if I get evicted.” We use AI to create new ideas of what legal services could be, and in so doing, we grow the legal industry and increase access to justice.

In conclusion

Embracing AI in your legal practice isn’t just about staying current; it’s about positioning yourself for future success. The technology will only get better from here, offering even more opportunities for innovation and efficiency. By understanding and leveraging AI, you can enhance your practice, provide better service to clients, and stay ahead of the curve in an ever-evolving legal landscape. Don’t be afraid and don’t be reckless. Be the cautiously optimistic explorer.

Jordan L. Couch ([email protected]) is a partner at Palace Law in University Place, Washington, where his practice focuses on workers’ compensation and personal injury litigation. As an advocate, he is always seeking new ways to advance and improve his practice and the legal profession as a whole. Couch also works with local, state and national bar associations to help others build a more modern client-centric law firm. Follow him on social media: @jordanlcouch.

Mind Your Business is a series of columns written by lawyers, legal professionals and others within the legal industry. The purpose of these columns is to offer practical guidance for attorneys on how to run their practices, provide information about the latest trends in legal technology and how it can help lawyers work more efficiently, and strategies for building a thriving business.

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