Artificial Intelligence and Automation in Legal Services: Increasingly Used in ALSPs

Digitalization has triggered a revolution across all sectors over the last decade, and the legal field is no exception. More specifically, Alternative Legal Service Providers (ALSPs) are not exempt from this new reality. These companies are undergoing a transformation in the way they work, where the use of technology allows them to become more productive and efficient.

Greater Productivity Through AI

AI can perform tasks that consume significant time and resources in ALSPs, such as contract review, case law analysis, or document drafting. Increasingly, companies in the sector are willing to use it.

The “2024 Generative AI in Professional Services” report by the Thomson Reuters Institute reflects this trend. According to the study, 85% of legal professionals state that generative AI is directly relevant to their work. Another striking figure is that while only 12% of companies and legal departments have already adopted AI solutions, an additional 43% plan to implement them within the next 36 months. This means that the adoption of AI will not only be a competitive advantage but will soon become a necessity to remain competitive.

New Ways of Working: Collaboration, Technology, and Client Focus

ALSPs are not only incorporating technology to do more in less time but are also leveraging the situation to embrace a new business culture. Automation will not eliminate jobs; rather, legal professionals will shift their focus to higher-value strategic tasks, such as interpreting regulations, negotiating contracts, or advising within a complex regulatory environment.

Moreover, the growing adoption of AI in legal services fosters cross-functional collaboration models among lawyers, technologists, and data specialists. The result is more flexible, efficient structures with a greater ability to respond to client demands.

The Importance of Implementing AI Responsibly

However, as with all changes, potential drawbacks must be taken into account. One of the main concerns is so-called “hallucinations”—when AI generates an incorrect response or statement. According to the Thomson Reuters study, 77% of professionals are concerned about the unsupervised use of AI, particularly with respect to the unauthorized practice of law or the storage of sensitive information.

This does not mean AI is unsafe or ineffective, but rather that it cannot perform properly on its own. Human oversight must ensure that quality and accountability standards are met.

Therefore, these tools should be used as support mechanisms, never as substitutes for human professional judgment. For this reason, it is crucial for companies to implement proper internal policies regarding AI use, though this is currently the case in only 10% of companies, according to the same report.

Such internal policies may include prohibiting the use of generative AI without authorization; requiring practices that safeguard the confidentiality and privacy of data entered into these systems; mandating human validation of AI-generated content to ensure accuracy; and ensuring that such technologies comply with existing laws and regulations.

It is therefore essential to train professionals in the ethical and strategic use of these technologies. At Gestiona-t, we are already doing so.

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