If you think they will save you money you are probably wrong and here is why!

Artificial intelligence seems to be the word on everybody’s lips at the moment and, as lawyers, we are far from immune to the impact of artificial intelligence.

As is often said, but needs to be reinforced, AI it is a tool, not a solution.

However, it has created some interesting aspects. Perhaps the most common one is that we are now sometimes presented with draft agreements prepared by a client using artificial intelligence. We are then asked to have a “quick look” at it.

Well, the problem is there is really no such thing as a quick look when we are responsible for the outcome.

Most contractual agreements contain what we call “machinery provisions” which are common to most agreement dealing with matters like jurisdiction, disputes etc. They might constitute 60 to 70 per cent of the agreement. It is the other 30 to 40 per cent which differs and which contains the critical parts of the agreement.

We use documents with which we are familiar, so we don’t need to look at the common provisions in those documents, simply the changes. However, when we are presented with a new document, particularly when it has been prepared by artificial intelligence, we need to check the entire document. So, the whole exercise, far from being a cost-saving exercise, becomes considerably more expensive.

Also, regrettably, artificial intelligence goes to various sources but, when it cannot find a source, it is in the habit of making things up. That in itself can be extremely dangerous.

However, AI can be invaluable in the preparation of a brief for your lawyer. We suggest you consider writing a prompt with as much information as possible about your proposed agreement including the benefits and risks and asking AI to draft you an appropriate prompt containing those elements.  In other words, a detailed prompt asking for a prompt you can then use.

There is certainly a place for artificial intelligence, which we use on a daily basis. However, we need to be aware of its limitations much the same as we need to be aware of our own.

If you would like to discuss this or find out more information, please do not hesitate to contact me or one of our lawyers.

 

Peter Nevile

  • nevile@nevile.com.au

Nevile & Co Commercial Lawyers

  • 0396644700
  • nevileco@nevile.com.au