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Note: This article is just one of 60+ sections from our full report titled: The 2024 Legal AI Retrospective - Key Lessons from the Past Year. Please download the full report to check any citations.

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Industry-Wide Challenges:

Challenge: Data Privacy and Security Risks

An January 2024 analysis of data from the Information Commissioner's Office (ICO) covering Q3 2022 – Q2 2023 revealed that 60% of identified data breaches in the UK legal sector were caused by insiders.[156] The same study found that data from legal firms relating to 4.2 million people was compromised, impacting customers (49%) and employees (13%).[157]

Challenge: Ongoing Training and Maintenance Requirements

The SRA's risk outlook report on the use of AI in the legal market emphasized the need for firms to understand their regulatory and professional responsibilities in the context of generative AI.[158] A 2024 analysis of ICO data for the legal sector showed that human error, such as emailing or posting data to incorrect recipients, accounted for 39% of the reported data breaches.[159]

While these concerns and limitations are significant, they are not insurmountable. Small law firms and sole practitioners should carefully weigh the benefits and risks of AI adoption, implementing appropriate safeguards and maintaining a balanced approach to technology integration in their practice.

"AI in legal is not without its challenges. Unskilled use risks hallucinations, potentially doubling checking time (Inkster's Law), underscoring the ongoing need for awareness and CPD in this area for legal professionals"

Gav Ward, Ex-BigLaw Solicitor, UK

"Industry wide challenges also include: Lack of precedents, so no clear idea of what area of AI is high risk (i.e., coding for developers or lifting a template which may have trained on another users IP), a lack of understanding as to IP ownership which could question viability of the business, Increased litigation in the US coupled with ineffective laws leaves a grey area for adoption of AI."

Aksa Kalam, Senior Legal Counsel, UK