The artificial intelligence ChatGPT from OpenAI has gained a special status in the legal field and facilitates legal processes with tailored tools such as Harvey.ai and Contract Matrix, from the search for documents to the drafting of contracts. But can artificial intelligence also replace lawyers?
ChatGPT: facts, problems and the API
ChatGPT, a product of OpenAI, represents an advanced form of artificial intelligence, specifically in the generative AI category. The underlying technology is based on a series of complex algorithms designed to give users the ability to independently generate diverse content such as text, images and even abstract concepts.
ChatGPT-3 was made available to the public in November 2022 and, according to tooltester, reached one million users within five days. ChatGPT-4 has been around since March 14, 2023, which differs significantly from GPT-3 in terms of the trained parameters. According to a post by melibo, ChatGPT-3 was trained with 175 billion parameters, while GPT-4 is trained with a trillion parameters. ChatGPT is used in numerous use cases, from entertainment to marketing to specific fields such as law.
One of the most well-known problems with ChatGPT and other models of this type is the phenomenon of “hallucinating”. This occurs when the system unintentionally generates false or fabricated facts and details. This problem poses a serious challenge in professional fields where accuracy and reliability are of crucial importance, such as in the legal field.
OpenAI also provides an API for ChatGPT, allowing developers to further customize and tailor the technology. The API enables the development of custom chatbots and applications tailored to specific needs and use cases in different industries, such as law.
Harvey.ai and Contract Matrix
In the legal field, there is a strong trend towards the use of generative artificial intelligence (AI), which is specially tailored to legal requirements. In particular, the focus is on the tools Harvey.ai and Contract Matrix, which are based on GPT-4.
Harvey.ai has been optimized for legal content and is used by the law firm Allen & Overy to quickly search through large documents such as annual reports, as nzz.ch reports in an online article. Harvey has exclusive agreements with Allen & Overy and PWC. However, Harvey needs to be checked because it sometimes “hallucinates” and, for example, invents judgments of the Federal Court of Justice. Harvey, as highlighted by PwC Legal Germany, has a remarkable ability to deliver legal solutions across a diverse range of legal areas. These include, but are not limited to, analysis of contracts, regulatory compliance, receivables management, due diligence, and legal advisory and legal advisory services.
Contract Matrix, which has an interface to GPT-4, is characterized by the ability to compare, summarize or simplify texts, as nzz.ch further reports. It is widely used in various fields, such as comparing terms and conditions or transaction documents, highlighting differences and making suggestions for improvement.
Application of AI in the law firm and the replacement of lawyers
The use of artificial intelligence in legal departments and law firms is constantly increasing and bringing about fundamental changes. According to nzz.ch, this development is still in a test phase, with the use of AI such as Harvey.ai being increasingly tested.
AI has the potential to simplify many legal workflows, which is why the London law firm Allen & Overy, uses Harvey for various legal applications. Christian Öhner from the consulting firm PWC describes the trend towards the use of generative AI at law firms as omnipresent, with the potential to replace young lawyers, as reported by nzz.ch. The rapid development of AI could take over the first step of document drafts, which were previously carried out by young associates, Öhner continues. However, this also harbors risks if lawyers rely too much on the AI results without checking them sufficiently.
According to a Legal Tribune Online article, the implementation of AI in the legal industry is expected to bring about a significant change both in terms of work tasks and workplaces, fundamentally changing the way legal professionals work and their job profile. Above all, activities that arise in the areas of assistance, research and contract drafting could be eliminated in the future through automation using AI tools. This development implies a possible reduction in the need for human capacities in these specific task areas.
At the same time, however, digital change is also opening up new horizons and offering innovative fields of application, as Legal Tribune Online further reports. Emerging areas such as Legal Prompt Engineering or Legal Design deserve special mention. The shift of tasks from traditional to technology-enabled fields could lead to a reorientation of the legal profession, where skills in dealing with AI and the ability to solve legal problems creatively and technology-enabled become increasingly important.
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