There is a new generation of machine in action now, and these are systems that can replace parts of, and sometimes all of, certain kinds of professional work” – Richard Susskind

Last night’s Q&A panel discussion offered a fascinating glimpse into what the future could hold for the Australian workforce. Experts like Adam Spencer hypothesised that the increasing role of robots and AI could cause the loss of thousands of jobs across a range of sectors, particularly mining and service industries. Others like the Assistant Minister for Industry, Innovation and Science, Craig Laundy, took the position that the increased use of robot and AI technology could create many more human jobs that will be needed to support new workplace infrastructures.

Among the list of professions to which AI has been considered a potential threat is the legal industry.

You will have likely seen a range of incendiary headlines such as “Robots replacing lawyers a ‘near certainty,” “Law firms of the future will be filled with robot lawyers,” and “Robot invasion” circulating online with increasing frequency. The result is that many lawyers and law students have spiralled into a state of panic about the future of the profession and the certainty of their jobs.

So how worried should we really be about the rise of robot lawyers?

Let’s look at the statistics

According to a report, The Future of Employment: How Susceptible Are Jobs To Computerisation? researchers compiled data to estimate how technology could affect the job market in 20 years.  The study used four key criteria to determine whether certain occupations are at risk of being automated:

1. whether the job requires coming up with clever solutions
2. whether it prioritises helping others on a personal level
3. whether there is a need to work in small spaces; and
4. whether negotiations are required.

According to NPR’s online calculation tool lawyers have a 3.5% chance of being replaced by automation technology given that some aspects of legal work are easier to automate than others. Court reporters could experience a 50% chance of being automated, while junior legal roles such as entry-level lawyers, paralegals and legal assistants that engage in legal research and drafting documents could experience a 94.5% chance of being automated in the future.

Sophisticated algorithms are gradually taking on a number of tasks performed by paralegals, contract and patent lawyers. More specifically, law firms now rely on computers that can scan thousands of legal briefs and precedents to assist in pre-trial research.

We find that paralegals and legal assistants – for which computers already substitute – in the high risk category. At the same time, lawyers, which rely on labour input from legal assistants, are in the low risk category. Thus, for the work of lawyers to be fully automated, engineering bottlenecks to creative and social intelligence will need to be overcome, implying that the computerisation of legal research will complement the work of lawyers in the medium term.”  Carl Benedikt Frey and Michael A. Osborne.

In the light of these forecasts for the future, are law firms looking to establish new ways to deliver their legal services? How will technology likely impact the profession?

Former Chief Justice of the High Court, Justice Robert French, notes in the June Issue of the Australian Legal Review:

The profession faces challenges and opportunities arising out of the use of technology, and in particular, artificial intelligence. It is evident that AI has the potential to perform, more economically, than humans, a range of legal tasks, including document review, analysis of ways of resolving legal disputes and the provision of basic legal advice. Its speed of development and impact on the provision of legal services and the profession generally is difficult to predict. However, its effects are likely to be profound.” 

What’s trending right now in the world of robot lawyers

While the human element involved in the practice of law can never be replaced by technology (no matter how intelligent it may be), the way in which legal services are delivered could significantly change in the coming years. Below are a few examples of recent trends around the world.

“DoNotPay” – Parking Fine Chatbot (UK and US)

Created by British teenager and Stanford University student, Joshua Browder, the “DoNotPay” chatbot handles ticket appeals through a Q&A-style chat. As of June 2016, the chatbot successfully appealed over 160,000 parking tickets, saving drivers time and legal fees.

“DoNotPay” has now been developed to assist asylum seekers to make a valid application by asking applicants questions in plain English.

In Australia, there is much potential for emerging technologies to support legal services.

FineFixer – Australia (Victoria only)

In an Australian-first for the legal assistance sector, Moonee Valley Legal Service recently launched FineFixer – a new website that provides personalised legal information to help Victorians understand their legal rights and how to tackle fines.

ROSS – World’s first AI lawyer (US)

The world’s first AI lawyer named ROSS is being used by US law firm BakerHostetler to sift through thousands of pages of legal research in its bankruptcy practice. ROSS was built on IBM Watson, a cognitive system that can answer questions in natural language.

ROSS can understand questions asked and respond hypothetically through the use of references and citations. ROSS only provides highly relevant answers, meaning that the amount of time and effort currently wasted on unbillable legal research by paralegals and law clerks may soon be reduced drastically.

Bob Craig, Chief information officer of BakerHostetler says:

ROSS is not a way to replace our attorneys – it is a supplemental tool to help them move faster, learn faster, and continually improve.”

It would appear at this time that there is great potential for robot lawyers and AI to enhance and streamline legal work by reducing the number of hours spent on tasks that can be automated – such as legal research, smart contracts, e-discovery, online dispute resolution, automated due diligence programs, programs to help drivers challenge parking fines, programs to assist people claiming refunds for delayed flights, programs to apply for emergency housing, and programs to assist people claiming asylum.

Certain tasks performed by legal assistants, paralegals and junior lawyers will be likely be automated in the reasonably near future.

What the future holds for the next generation of young lawyers

The impact of robot lawyers and AI for junior lawyers may make some of us baulk.

For the majority of junior lawyers working in the private sector, an essential aspect of core legal training comes from hours of dedicated and laborious legal research. If robots are able to scan millions of documents and find the desired answer in a few seconds, will there still be a role for graduate lawyers?

Short answer: Yes.

According to the Honourable Justice Margaret Beazley AO:

Whilst the ‘grad’ won’t become obsolete, the day-to-day activities of graduate lawyers will undergo a significant shift as many of their tasks become automated.”

While automation might remove one element of the role performed by grads, this just means that the grad’s entry pathway to the law will look slightly different in the future.

In the past few years, the impact of tech disruption in the legal industry has presented a new suite of challenges for grads as tech skills have become more attractive to employers than ever before.

For young Australian lawyers:

As a generation of legal practitioners who are likely to be most impacted by these developments, your challenge will be to ensure that technological change supports the administration of justice and the rule of law and does not supplant it with concepts that are alien to our rich legal tradition,” Justice Beazley says.

For the next generation of lawyers still at university, therefore, it will be important to develop cross-disciplinary knowledge. Marketing, writing, coding, IT, business, leadership and management skills, as well as the ability to build legal technologies, will all be important areas to develop when preparing to enter the legal job market. Importantly, these skills will be needed on an ongoing basis.

Introduction of more ‘law tech’ courses at universities

Universities around the country are responding in different ways to the impact of tech disruption in the legal sector and the way in which it is changing the delivery of legal services. Hackathons are becoming increasingly popular, as is the introduction of new courses that focus on technology.

The University of New South Wales (UNSW), for example, has partnered with law firm Gilbert + Tobin and software company Neota Logic to provide students with a new course that provides students with a practical experience in using legal technology.

The elective course “Designing Technology Solutions for Access to Justice” was offered to undergraduate and Juris Doctor students in Semester 2 of the 2017 academic year.

Elsewhere, in an Australian first, the University of Technology Sydney (UTS) has launched a new undergraduate major in legal futures and technology. The course will be part of the standalone and combined bachelor of laws degrees and will be the first undergraduate legal major in legal technologies and legal futures taught in Australia.

The introduction these courses similar are a great step in integrating more tech knowledge and skills for a new generation of lawyers.

Some skills are irreplaceable 

Regardless of how technology changes the way legal services are delivered in Australia, one thing remains certain: robot lawyers and AI will never completely replace human lawyers.

Technology will continue to aid the performance of mundane and routine tasks and will likely take on a more dominant role in legal research and automated discovery etc. But human intelligence, the human capacity for negotiation, emotional intelligence and the ability to make the correct judgement call will never be the province of technology as we know it to exist today.

Former Chief Justice Robert French says:

The challenges for the profession in Australia are many and are shifting rapidly in a variety of directions. It might be said there has never been a more exciting time to be a lawyer. There has certainly never been a more challenging time, nor one in which the stakes are so high. 

What do you think about the role of technology in shaping the future of the legal profession? What do you consider to be the challenges or opportunities? Let us know in the comments! 

This year, the 2017 State of the Profession Address was held at the Law Society of NSW on Thursday,
21 September where The Honourable Justice Margaret Beazley AO, addressed members on a topic at the forefront of every Australian lawyer’s mind – “Law In The Age Of The Algorithm.”

The law is not immune to technology

Algorithms are present in our day-to-day lives and (perhaps in spite of wishful thinking by many lawyers), the law is not immune to the influence of technology.

Justice Beazley suggested the challenges for the legal system and the legal profession are twofold:

1. keeping up to date with new technologies
2. using technology to serve clients and further the administration of justice.

The second point is fundamental to the efficient and effective administration of the legal system.

For young Australian lawyers:

As a generation of legal practitioners who are likely to be most impacted by these developments, your challenge will be to ensure that technological change supports the administration of justice and the rule of law and does not supplant it with concepts that are alien to our rich legal tradition,” Justice Beazley said.

Changing nature of the legal workplace

The changing nature of the legal workplace is reflected in flexibility and connectivity.

Justice Beazley considered how technology has brought about change by aiding communication and legal research and also because it knows no borders. Her Honour observed that this has enabled globalised legal practice that has connected offices around the world in ways that couldn’t be imagined a few decades ago. Amalgamations between Australian and London-based firms, for example, as well as several London-based and American firms opening offices in Australia has impacted the type of legal work undertaken. It has also intensified competition for partnerships and increased the pressure and expectations placed on associates.

While technology has positively changed the face of the modern legal workplace – by giving lawyers the freedom to work anywhere and anytime – this freedom often manifests more like a trap that sees us working everywhere, all the time.

There is a story … of a lawyer on a family holiday on a yacht in the British Virgin Islands precariously clinging to the mast to gain enough reception to send a final message to the firm back home. It is reputed that there are competitions where lawyers compete for the most exotic place from which to clock up billable hours – the base camp of Kilimanjaro being one particularly notable entry!” Justice Beazley said.

Justice Beazley reflected on France’s legislation that prevents employers from contacting staff after working hours. Her Honour considered that this approach would not be an obvious reform that would gain traction in Australia.

New mechanisms for legal advice

Described as the ‘death adder leaning over the lawyer’s shoulder,’ Justice Beazley also talked about the new buzzword which will have an impact on legal work and jobs – artificial intelligence.

Whilst the ‘grad’ won’t become obsolete, the day-to-day activities of graduate lawyers will undergo a significant shift as many of their tasks become automated,” Justice Beazley said.

Her Honour considered that it will be difficult to predict the full impact of AI on the legal profession. A few examples of recent developments include ‘smart contracts’, automated due diligence programs, programs to help drivers challenge parking fines, programs to assist people claiming refunds for delayed flights, programs to apply for emergency housing, and programs to assist people claiming asylum.

Online dispute resolution models that do not require the assistance of a lawyer are being promoted as a quick and effective tool to resolve disputes and to increase access to justice for the ‘missing middle’ cohort of Australians who cannot afford legal representation but who do not qualify for legal aid.

Last year, the Australian government provided funding to National Legal Aid to look into creating an AI system for divorce proceedings. Graham Hill, National Legal Aid chairman, estimates that 20% of all family law disputes in Australia could be resolved using online dispute resolution. The benefit of this approach would be to save time and money and, if implemented:

This development would free up judicial resources to be used for difficult disputes and in cases where the legal principles need to be established or clarified,” Justice Beazley said.

Facilitating procedures in court

Technology is changing the face of court procedure and processes. In particular, the administrative functions of the court, pre-trial procedures and the hearing process have been impacted.

Some examples Justice Beazley touched on include online filing, e-discovery and document management, electronic courtrooms, video links in criminal matters, and the use of safe rooms from which vulnerable witnesses may give evidence.

Some of the challenges associated with the use of technology in the court system include the extent to which parties are able to navigate technology; and the cost of technology as well as the time and cost involved with training judges to use it.

Impact of technology on the development of law 

For lawyers, one major challenge is to understand the suite of new legal problems arising from technological innovation across industry, commerce and social communication. For example, the unique legal issues associated with multi-national corporations minimising or avoiding exposure to tax obligations, the implications of blockchain technology and crypto-currencies such as Bitcoin.

Last month, the Australian government announced plans to regulate Bitcoin through anti-money laundering laws and, earlier this year, Japan became the first national government to adopt this approach. This makes Bitcoin exchanges in Japan now subject to audits and other anti-money laundering safeguards.

The legal issues which are thrown up by these developments are tied to algorithms – the entire Bitcoin currency is built on them! There will be no choice but for the lawyer in the third decade of this century to understand the implications of algorithmic technology. The refrain of the 20th century lawyer ‘I did law so I didn’t have to do maths’ will be as archaic as the penny farthing bicycle was at the beginning of the 20th century,” Justice Beazley said.

The human cost

Her Honour observed that the role of the court is foundational to society and that robots, on their own, will never be able to achieve this.

Individuals need to feel that they are treated ‘fairly’ in their interaction with the legal system. Fairness in this context is not only in the outcome of their case or resolution of their issue. It is the human need to be listened to,” Justice Beazley said.

To sum up

This year’s State of the Profession Address by The Honourable Justice Margaret Beazley AO, raised a number of fascinating opportunities and challenges to the current practice of law in Australia, and forecast a range of ways in which technology is likely to impact the future of the profession.

Technology, AI and robots do have their limitations and, as such, can never replace the human element which is fundamental to the effective function of the legal system and access to justice. Technology is, however, likely to change the nature of the role of Australian lawyers by streamlining current legal processes and enhancing the administration of justice.

Yes, the future is uncertain … but this means that it is full of possibilities.

To young lawyers, Justice Beazley says this:

You are uniquely positioned at the forefront of this new era of law and lawyering, it will be you who will get to determine what the future looks like.”

She added a cautionary note regarding the challenge in embracing algorithmic technology, which will be to recognise the inherent limitations of it and the need for human involvement and monitoring.

Personally, I think that the future is something to be very excited about.

Watch the Honourable Justice Margaret Beazley AO’s full State of the Profession Address below:

How do you think technology is impacting the practice of law in Australia? What challenges or opportunities have you observed? Let us know in the comments!

On Tuesday night, the Law Society of New South Wales officially launched what is being described as Australia’s most comprehensive report to help lawyers better understand and tackle future challenges and opportunities facing the profession.

The Future Committee was established by the Law Society of NSW 2016 and its Future of Innovation in the Profession (FLIP) report is the culmination of research and consultation with more than 100 professionals.

When speaking about the drivers behind the report, Law Society of NSW President, Pauline Wright said:

The Law Society was determined to better understand the forces at play in our profession and help arm our members with the insights, knowledge and skills needed to succeed and thrive in the future.

Past Society President and Chair of the Future Committee, Gary Ulman, said:

We weren’t afraid to set ourselves an ambitious task – our Inquiry aimed to not only investigate key trends shaping our industry, but also develop practical recommendations to help future-proof our profession. 

Key Findings & Recommendations 

• Changing cultures, consumer pressure and lower prices are driving increased use of technology

Some of the main drivers of change include consumers seeking value for money and expecting lawyers to be abreast of, and use, technology. According to the Report:

Clients in the wider community have an appetite for cheaper offerings and prefer predictable costs. Solicitors are also encountering expectations that they use technology to provide service in a contemporary way.”

One of the key demographics identified as driving these changes are millennials. As digital natives, they are early-adopters of new technologies as well as faster, cheaper and more effective ways of accessing services online – think Airbnb, Uber, GoGet and Xero.

The Report provides that low-cost or free solutions like ‘DoNotPay’ a free online service (or robot lawyer) designed by a Stanford law student which overturned 160,000 parking tickets in New York and London are growing in popularity.

• Law graduates of the future need a range of new skills and knowledge

The Report focuses on law schools and PLT to produce ‘practice-ready’ graduates, suggesting that students be familiar with using new technology such as data analytics, as well as developing business skills and resilience, flexibility and the ability to adapt to change. Research and consideration is necessary to determine how these skills can be included in existing curricula. The Report also identifies that as legal technology develops and matures, new roles are likely to emerge.

• Innovation has the potential to enhance the personal well-being of members of the profession if the introduction of change is supported appropriately

While the Report identifies change in the profession as necessary and inevitable, it provides that individuals cope with change differently and that lawyers in both the private and public sectors need to be supported and trained through this process, possibly by introducing skills and practices that promote wellbeing into existing or new CPD units.

One government department came up with a novel solution to the challenge of older workers embracing technology. When some workers refused to undertake compulsory computer training, they were matched with younger staff from Gen Y, Gen X and millennial generations. The initiative not only saw the older workers pass the course but also younger workers benefit significantly from the depth of knowledge and experienced shared by their more experienced colleagues. Robyn Bradley, Mental Health consultant says:

I think if we can get the young lawyers working more with the older lawyers to help them with their fears about the technology and to show them how it can be used; and at the same time the older lawyers can pass on practice wisdom and show the young ones that they do know a thing or two … that would be good.”

The Report recommends noting the risk of adverse mental health impacts associated with rapid changes and to focus on facilitating wellbeing when delivering training or drafting new material to assist with such change.

• A centre for legal innovation projects to research and support change should be established

The Report noted a number of trends emerging from the use of technology in the legal profession including the potential to make legal work more enjoyable, effective and efficient as well as promoting competition and changing client expectations.

The Report recommends that the Society establishes a centre for legal innovation projects that actively facilitates innovation in legal technology and engages in the development of emerging technologies. The centre would also conduct and present research into ethical and regulatory dimensions of innovation and technology. It should also raise awareness of justice-related innovation including online dispute resolution.

• Efficacy of online legal documents should be researched including by analysing complaints made by consumers and investigating regulation of online legal information

The Report notes that the popularity of cheap legal documents made readily available to the public online has resulted in an increase in clients only contacting solicitors when they need to determine if the ‘standard’ documents they have purchased are fit for purpose, or to resolve a dispute that has arisen.

Over the last 10-15 years, in particular, the focus of solicitors’ practices has shifted from transactional to contentious largely because of the work of DIY clients. Many clients, for example, are taking more steps to secure their rights unaided such as relying on online legal documents which may turn out to be ‘not fit for purpose’ or obtaining trademark certificates, and only seeking legal advice when a problem arises.

The Report raised concerns that risks to consumers could be significant. The Society is looking into regulating online legal information and actively raising awareness among members of the public about the value of legal advice. It expressed the importance that regulatory touch should continue to be ‘light but judicious, serve the interests of the public, and foster innovation.’

This is likely to directly impact a range of prominent ‘NewLaw’ firms which specialise, for example, in the provision of online legal documents.

• Community needs and funding

According to the Report, the current pattern of legal service usage forms the shape of a ‘U’ where the highest users are at either end of the financial spectrum – from the very vulnerable who come from lower socio-economic backgrounds to the very wealthy who come from high socio-economic groups.

Within this curve of legal service usage exists a ‘missing middle’. Individuals from middle-income backgrounds or small to medium-sized businesses and organisations, who are not eligible for legal aid and who cannot afford expensive legal representation, are left with unmet legal needs. These people often experience legal issues but rarely seek legal assistance.

According to the Report:

this is a particularly dynamic area of unmet need, one which is beginning to be researched in more detail.”

• Draft guidance for lawyers as entrepreneurs and business people

The Report recommends the development of draft guidance for lawyers to operate as entrepreneurs and to develop new ways of doing business.

Final Thoughts

Despite the demand for accessible and affordable legal information and services from large and influential sections of the community, surprisingly, the legal industry is among the last dinosaurs still dragging its feet behind the likes of the health, travel and financial industries. This lack of widespread uptake in innovation and new technology in the face of a rapidly-changing legal landscape is even more pressing, especially given the potential for technology to improve the lives of clients as well as lawyers.

The Report does not deal with the potential for the increased use of technology and innovation to significantly enhance the lives of the broader community which, in our view, should be a key focus of legal services.

Interestingly, the recommendations overlook the need to improve community awareness and understanding of the law and legal issues from a preventative law standpoint.

As the Report establishes, many early stage legal issues faced by young Australians and middle-income earners either go unrecognised or untreated. For this ‘missing middle’ cohort, self-education and personal empowerment can be achieved through greater use of reliable online legal information and resources available through digitised government and other resources.

Indeed, there is much scope for public interest publications such as BucketOrange Magazine to play a significant educative role in lifting community awareness of the law generally. BucketOrange Magazine is not only successfully reaching out to this middle cohort but also providing a facilitative channel bridging the legal knowledge gap through educating the public about the law, the value of legal information, and the importance of seeking timely professional legal advice.

In the next 3-5 years, it will be vital for the industry to adapt, pivot and change direction in response to these identified factors and those set out in the FLIP Report.

What are your impressions of the findings and recommendations outlined in the FLIP Report? Let us know in the comments!

Further Information

Read the full Future of Law and Innovation in the Profession Report (FLIP) here.