On August 23, 2023, the legal industry is experiencing the application of AI tools, such as ChatGPT, for various tasks like research, e-discovery, due diligence, litigation prediction analytics, contract review/drafting, and document generation and management. This raises questions about the future role of lawyers. Although it is unlikely that AI will completely replace attorneys, it is foreseeable that a significant portion of repetitive and generic legal work will be handled by AI. A study conducted in 2023 by Goldman Sachs estimated that 44% of legal tasks in the United States are susceptible to automation. However, human lawyers will still play a critical role in the industry, requiring their skills and specializations to adapt and complement the technology, rather than competing with it. The American Bar Association's Model Rules of Professional Conduct acknowledge the need for attorneys to keep up with changes in the practice of law, including the benefits and risks associated with technology such as AI. This includes understanding how AI works and ensuring accurate results from AI tools. Ethical concerns arise in relation to AI, such as biases, discrimination, incomplete or faulty data, lack of transparency, and the protection of client confidentiality and data privacy. Consequently, AI will require human oversight to ensure effectiveness. If indeed 44% of legal work can be replaced by AI, it necessitates a reevaluation of the value that human lawyers bring to the equation and how the legal industry will need to adapt. AI's potential to handle certain tasks currently performed by associates and paralegals presents an opportunity for young lawyers to engage in more substantial and sophisticated work earlier in their careers. However, law firms will need to adjust their training programs to equip young associates with the skills and experiences that AI is replacing. Future leaders and firms must be proficient in utilizing AI tools effectively, evaluating their outputs, identifying biases, and applying AI solutions to real-life situations to advise clients. Although AI can potentially free up lawyers to focus on higher value work, it poses challenges to the traditional billing structure of the legal industry. The billable hour model may become obsolete, and value-based billing, paying for work completed rather than time spent, may become more common.

Both lawyers and clients may prefer this approach, considering the reduced time AI can accomplish certain tasks. Law firms may face stiffer competition from tech companies operating as alternative legal service providers (ALSPs), leveraging AI-driven technology. To stay competitive, law firms may need to embrace AI by developing their own AI tools and reshaping their business offerings. This shift presents both opportunities and challenges within the legal industry. Firms that effectively utilize AI can enhance efficiency and accuracy while expanding their services. However, if the future law firm resembles a tech company, the legal industry's business model and value proposition must adapt as well. Firms will need to focus on leveraging AI tools and maintaining the unique human capabilities that AI cannot replicate, such as building client relationships, advocating, empathizing, understanding client needs, providing discretionary judgment, and offering expert advice. The legal industry must find its place within the AI paradigm and prioritize both technological development and high-quality human interactions. Traditional business models, compensation structures, and organizational dynamics may need adjusting to align with the integration of AI. It is crucial for firms to decide whether to adapt or risk falling behind in this new AI-driven legal landscape. (Opinions expressed by the author, Roger E. Barton, do not reflect the views of Reuters News or Westlaw Today, both of which prioritize integrity, independence, and freedom from bias. Roger E. Barton is the managing partner of Barton LLP and a litigator specializing in the capital markets and financial services industries. )