3 Compliance Challenges in an AI-first Legal World 

First Reviewed : June 13, 2024
Last Reviewed: June 13, 2024

The tidal wave of data continues to rise, and with it comes a growing mountain of legal and compliance considerations. Companies are grappling with an expanding web of regulations, from data privacy to cybersecurity, and legal departments are struggling to keep pace.

– ACC Docket 

In 2024, the legal world is no stranger to artificial intelligence (AI). From streamlined contract review to lightning-fast legal research, legal tech AI has become an indispensable partner in the corporate legal landscape.  

Ensuring compliance in an AI-powered legal landscape demands a delicate balancing act. Legal professionals must navigate the potential pitfalls of data bias, grapple with the need for transparency in AI-driven decision-making and stay ahead of the curve on ever-evolving regulations. In this article, we explore the challenges of conforming with evolving compliance and regulatory needs in a legal environment that embraces and relies on AI in legal tech. 

Navigating the Compliance Minefield of Legal AI 

Data Bias 

AI models are trained on data sets. Biases within that data can lead to discriminatory or unfair outputs. The ABA Model Code of Professional Conduct requires lawyers to “strive to avoid any conflicts of interest and to disclose all conflicts when discovered.” This extends to ensuring the data used in AI tools is unbiased and secure. 

Transparency 

Above the Law emphasizes the need for transparency. “[W]hen a legal AI tool makes a recommendation, the lawyer needs to understand how it arrived at that conclusion.”* Departments need to be able to explain the reasoning behind AI-generated outputs. 

Evolving Regulations 

The regulatory landscape surrounding AI is still taking shape. Regulatory bodies are actively exploring how to address the challenges posed by legal AI. Legal departments need to stay informed about industry best practices and potential future regulations. 

What Will the Future of Compliance with Legal AI Look Like? 

The responsible use of legal AI and generative AI can empower legal departments. By prioritizing compliance and ethical considerations, corporate counsel can leverage these tools to navigate the legal landscape with confidence. 

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