The International Bar Association (IBA) last month released a report titled "The Future is Now: Artificial Intelligence and the Legal Profession," offering a comprehensive look at how AI is reshaping the practice of law worldwide.
The report, presented at IBA 2024 in Mexico City, reveals that AI adoption is widespread among law firms, with larger firms leading the charge in sophisticated integration. While AI is primarily used for back-office tasks, there's a growing trend towards its application in client-facing work such as legal research and document drafting.
IBA President Almudena Arpón de Mendívil Aldama underlined the timeliness of the report, stating, "As the global voice of the legal profession, we have a duty to meet this moment and provide guidance on the legal aspects of AI to our members, to the legal profession, and to society."
The study highlights significant challenges in AI governance, particularly in areas of data security, intellectual property, and privacy. Notably, smaller firms often lack the resources and policies to effectively manage these issues.
A key finding of the report is the expected impact of AI on law firm structures and business models. The study notes that many firms anticipate potential shifts towards fixed-fee models and a growing emphasis on hiring AI-competent attorneys. The report stresses the importance of training, both in AI tool usage and in maintaining fundamental legal skills.
On the regulatory front, the IBA found that most respondents favour comprehensive AI regulation that enables innovation while ensuring consistency and coherence.
The IBA has put forth several recommendations, including promoting AI adoption with particular support for smaller firms, enhancing AI governance and policy development, and facilitating AI training programmes. The association also advocates for global collaboration on AI in the legal profession and updating ethical guidelines for AI use.
The IBA state that while AI presents significant opportunities, it also poses challenges to the rule of law. The report underscores the need for human oversight and the expertise of lawyers during this technological transition.