The Legal Use Cases of Generative AI: Insights from a Lawyer-Turned-Entrepreneur

Generative AI (GenAI) has captured the legal world’s attention, emerging as a game-changing tool that promises to reshape legal workflows and operations. While law firms have historically been slow to embrace technology, the landscape is changing, and AI adoption is rising as legal professionals face increasing demands for efficiency and accuracy. This article will explore the practical applications of GenAI in law, the potential benefits, and the challenges legal professionals must navigate.

Contract Drafting and Review

Contract management is one of the most labor-intensive tasks in legal practice. Whether drafting, reviewing, or negotiating contracts, lawyers often spend hours navigating dense legalese to identify and revise terms. Here, Generative AI proves to be invaluable by streamlining the process.

Platforms like Spotdraft are transforming how in-house legal teams and law firms manage contracts. These systems use GenAI to draft, store, analyze, and execute contracts, significantly reducing the time spent on these tasks​​. For example, Spotdraft’s solution reduced Whatfix’s contract review process from 10 steps and up to two hours to just 3-4 steps, taking as little as 15 minutes​.

By automating standard clauses, identifying risky language, and suggesting revisions, GenAI offers a faster and more reliable approach to contract lifecycle management (CLM). For routine contracts like non-disclosure agreements (NDAs) or service-level agreements (SLAs), generative tools can draft initial versions in minutes, leaving lawyers to focus on critical, strategic negotiations.

Legal Research

Legal research, a cornerstone of any lawyer’s work, is another area where GenAI is making a significant impact. Traditionally, legal research has required hours of reviewing case law, statutes, and regulatory materials. Tools like Smart Counsel, Harvey, and Casetext now allow lawyers to input specific legal questions and receive near-instantaneous summaries, case citations, and suggestions based on precedent​. This AI-assisted research can drastically reduce the time spent on preliminary research while maintaining the necessary accuracy, giving lawyers more bandwidth to focus on applying the law to complex scenarios.

However, GenAI does not replace human oversight. As courts have sanctioned lawyers who blindly relied on AI-generated materials without verification, it is crucial for lawyers to review AI outputs meticulously​. This serves as a reminder that while AI can enhance efficiency, the ultimate responsibility lies with the attorney to ensure the accuracy of the information.

Due Diligence and Discovery

Due diligence and discovery processes, especially in corporate transactions and litigation, require lawyers to sift through vast amounts of documents and data. Historically, this task has been both time-consuming and error-prone. GenAI has changed the game by enabling rapid document analysis and anomaly detection. AI can identify relevant patterns, extract key information, and even flag inconsistencies or red flags that might be overlooked by human reviewers.

For instance, AI solutions are being deployed for vendor and contract due diligence, reducing the burden on legal teams while also ensuring comprehensive review​. Moreover, generative AI systems can predict risks and provide proactive compliance monitoring, allowing legal departments to address potential issues before they escalate​

Litigation Support and Case Strategy

Beyond document review, Generative AI can also assist in developing case strategies. AI-driven tools like Luminance and Litigate offer lawyers the ability to input case information and receive recommendations on potential legal arguments based on prior case law​​. These tools can summarize depositions, review discovery documents, and even predict case outcomes based on historical data. By using these systems, litigators can craft more effective strategies, informed by data-driven insights.

For contentious areas like personal injury litigation, where large volumes of cases follow similar patterns, generative tools can assist in automating routine filings, leaving lawyers free to focus on negotiations and courtroom advocacy​.

Client Communications and Self-Service Legal Solutions

Many law firms are leveraging GenAI to improve client interactions and streamline service delivery. Self-service portals powered by GenAI allow clients to obtain preliminary legal advice without needing immediate lawyer intervention. For example, AI tools can draft initial responses to common legal queries, such as those involving contract disputes or compliance issues​​. This development aligns with a growing demand from clients for more cost-effective legal solutions and faster response times.

In addition, GenAI can assist with marketing and business development by generating personalized client updates, case summaries, and legal news tailored to the client’s needs​.

Practice Management and Efficiency Gains

Beyond client-facing applications, GenAI is helping law firms increase internal efficiency. From automating routine administrative tasks to managing e-billing and matter management, GenAI platforms such as LexisNexis and Thomson Reuters have introduced AI-powered systems that allow legal departments to track spending, monitor compliance, and manage workflows more effectively​.

Firms are also exploring predictive analytics powered by GenAI to forecast litigation costs, anticipate client needs, and allocate resources more efficiently​. As firms adopt these systems, they can reduce overhead costs and improve profitability, particularly in practices where efficiency is crucial, such as contingency-fee-based firms​.

Ethical and Regulatory Considerations

Despite the many advantages of GenAI, legal professionals must remain mindful of the ethical and regulatory challenges that come with its adoption. As with any technology, the risk of errors or misuse persists, and courts have already taken action to address instances of AI-generated false information​.

Furthermore, data privacy remains a significant concern, particularly when sensitive client information is involved. Legal professionals must ensure that AI systems comply with data protection regulations, such as the GDPR or CCPA, and that AI tools are used transparently and responsibly​.

Additionally, the profession faces a shift in the traditional billable-hour model. With AI increasing efficiency, clients are pushing back against excessive billing for tasks like legal research, pressuring firms to adopt alternative fee arrangements such as flat fees or value-based billing​.

The Future of Legal Practice

Generative AI holds tremendous potential for revolutionizing legal practice, offering lawyers new tools to enhance their workflows, improve client service, and reduce costs. However, as this technology evolves, legal professionals must remain cautious, ensuring that they leverage AI responsibly and in accordance with ethical guidelines. With the right balance, GenAI will continue to be an indispensable ally in the practice of law, enabling legal teams to navigate the complexities of modern legal challenges with greater agility and precision.

(Namrata Sehgal is a lawyer turned entrepreneur, having done her Masters in Law from Lucknow University and Masters in Business Administration from Indian Institute of Management, Bangalore.)

Namrata can be reached on