Towards the end of last year, the Law Society of NSW, the Legal Practice Board of Western Australia, and the Victorian Legal Services Board and Commissioner jointly issued a statement outlining clear principles and expectations for lawyers in using AI tools within legal practice.

In light of these developments, leading voices within BigLaw, including David Fischl, legal and digital transformation lead partner at Hicksons Lawyers; Gary Adler, chief digital officer at MinterEllison; and Emily Coghlan, the director of legal and legal technology at Herbert Smith Freehills, share their insights on the growing emphasis of AI by legal regulators. They also discuss the role of AI within the legal profession and offer their perspectives on what more needs to be done to address this emerging technological shift.

Regulatory frameworks and the role of legal regulators

Fischl expressed support for legal regulators taking a more proactive approach to AI and emphasised the need for clear guidelines and frameworks to govern its use effectively within the profession.

“We are pleased to see AI taking centre stage in recent regulatory and policy discussions within the Australian legal industry,” Fischl said.

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He also expressed Hickson Lawyers’ expectation that AI will remain a key focus in regulatory and policy discussions by 2025 as the technology continues to evolve.

“As we move into 2025, we are confident that AI will continue to keep the spotlight in these debates while increasingly embedding itself into legal workflows,” Fischl said.

Adler agreed with the support for legal regulators prioritising AI and explained the importance of such initiatives to ensure the industry advances collectively.

“It’s great the regulators are actively engaging with the legal industry; we see it as critical that we move forward collectively rather than being out of sync,” Adler said.

As AI becomes more prevalent within the profession, Adler highlighted the increasing importance of regulators establishing and enforcing clear guidelines for legal professionals.

“AI continues to evolve at pace, and as the use of AI in legal proceedings becomes more commonplace, appropriate and, importantly, adaptive, guidelines must be in place,” Adler said.

Coghlan shared how she welcomes the increasing involvement of regulators and legal institutions, stressing the importance of carefully integrating AI technology to ensure they are deployed responsibly.

“We welcome the engagement by regulators and courts as the industry works hard to adapt to the continued developments in AI capability.

“The AI landscape is rapidly evolving. Courts, regulators, and government agencies will need to sensibly adapt to continued developments in AI capability and use,” Coghlan said.

What responsible AI integration is

All three prominent law firms acknowledged that as legal practices increasingly incorporate AI, ensuring that this integration occurs responsibly is imperative.

Fischl argued that a crucial aspect of ensuring the responsible integration of AI in the legal profession is maintaining human insights and touch throughout each step rather than allowing AI to assume complete control.

“Every critical step needs a human touch to ensure ethical and accurate outcomes. Keeping a human in the loop is non-negotiable. This is the middle ground that regulation and innovation need to find,” Fischl said.

Similarly, Adler expressed that maintaining human oversight is essential to ensuring responsible AI integration. To achieve this, he noted that MinerEllison has appointed designated individuals to guide and oversee its internal AI protocols effectively.

“At our firm, the development of our internal AI tools is guided by our internal data governance and responsible AI principles.

“We have an AI usage policy, risk register, lighthouse guidelines, and a GenAI steering committee that meets monthly to ensure we’re adapting to legal risk with genuine agility,” Adler said.

“While we see AI as a powerful tool, there is always a human in the loop – this is a task in the workflow that cannot be compromised.”

For AI to be integrated responsibly into legal practice, Coghlan believes that law firms must “remember that the use of GenAI tools does not derogate from the professional and ethical obligations held by lawyers”.

She also highlighted the importance of law firms recognising that implementing AI is not necessary for all tasks, balancing technological innovation with traditional practices.

“Continued industry engagement and good governance is critical. Law firms need to be aware that AI is not suitable for all tasks – for example, it’s not good for understanding nuances in context, for understanding a client’s risk appetite, and for broader legal reasoning,” Coghlan said.

The AI revolution in legal workflows

The opportunities AI presents across various industries are substantial, and the legal profession is no exception.

Fischl explained how AI can boost efficiency in the legal profession by automating routine administrative tasks and improving access to justice by reducing the cost of legal services.

“AI has the potential to significantly enhance the efficiency of legal practices by reducing administrative tasks and enabling lawyers to focus on more complex issues.

“It also promises to improve access to justice by making legal services more affordable and accessible,” Fischl said

“AI is the shiny new tool that every law firm is asking for this Christmas.”

Adler highlighted the advantages that AI offers to the legal profession, highlighting its potential to enhance the entire “legal ecosystem”.

“Over time, this technology will create win-win outcomes for all in the legal ecosystem – clients, courts, and firms,” Adler said.

Coghlan articulated that artificial intelligence’s potential within the legal profession encompasses various facets, including “how it can support those working in the legal profession to undertake their roles, as well as the ways in which firms deliver services to clients”.

She did, however, note that artificial intelligence tools are not new to the profession and have been significantly influencing operations for many years.

“But AI isn’t new. In fact, we have been using AI for a long time in the legal profession, most notably in the e-discovery space. Courts have long accepted the use of predictive coding or technology-assisted review (TAR) to enhance the discovery process,” Coghlan said.

While all three BigLaw firms express a strong sense of optimism about AI’s potential advantages, they are equally aware of the considerable risks associated with its implementation.

Fischl cautions against being blinded by the “shininess” of AI and encourages lawyers to adopt a balanced and thorough approach when integrating such technology into their practices.

“However, we must not be blinded by the shininess of AI to the point where it results in unchecked innovation.

“The advancements of AI must be met with the diligence and caution that all great lawyers possess,” Fischl said.

To fully leverage the advantages of artificial intelligence while mitigating its inherent risks, Fischl emphasised the critical importance of “transparency and human oversight at every stage of the decision-making process”.

Adler acknowledged that AI will undoubtedly transform the profession and redefine roles within organisations; however, he emphasised that such changes will yield positive outcomes.

Coghlan was also quick to note that the rapid proliferation of AI tools will bring new challenges the legal profession will need to overcome.

As the number of available tools grows, she explained, law firms must remain vigilant about the potential risks associated with using them.

“The explosive number of GenAI tools entering the market is demonstrative of how quickly this space is evolving,” Coghlan said.

To mitigate these potential risks, she discussed how law firms must establish robust policies, provide comprehensive staff training, and ensure that artificial intelligence is used appropriately within their operations.

“As with any new technology, it is important for any risks to be assessed, and law firms should ensure that they have robust policies and procedures in place to govern GenAI tools are used in the workplace, and ensure that those using it are given appropriate training and support.

“We are focused on empowering our talent at all levels and in all roles to leverage the benefits of AI and the opportunities it creates,” Coghlan said.