Contracting and contract law in the age of artificial intelligence

 The contributors to Contracting and Contract Law in the Age of Artificial Intelligence, make clear that AI is rapidly reshaping contract law. In particular, the chapter "From Document to Data: Revolution of Contract Through Legal Technologies" argues that the legal market is experiencing a profound shift towards what Silvia Martinelli and Carlo Rossi Chauvenet describes as "servitization and productification" of legal activities (p. 81). This refers to the transformation of legal services into standardized, technology-driven products. It’s a shift away from personalized legal advice towards packaged solutions, often delivered through software subscriptions or apps (p. 85).

Thought of as data-driven assets, contracts can (and should) be actively managed and analyzed. Contracts are no longer static documents but dynamic data points. By collecting and analyzing data from contracts and other legal processes, legal tech solutions can be used to provide valuable insights that can improve legal strategies, analyze large data sets to reveal contractual risks, and infer correlations to predict outcomes (p. 83).

Consequently, the role of lawyers is also evolving, requiring many now to become legal tech integrators, bridging the gap between legal expertise and technological solutions (p. 85). The rise of legal tech integrators reflects the increasing demand for professionals who can handle technology and structure contracts within contract management solutions. These lawyers are responsible for choosing, implementing, and managing legal tech solutions within legal departments involving software selection, customization, integration, and change management (p. 87).

The servitization and productification of legal activities represents a fundamental shift in the legal landscape, driven by the increasing power and accessibility of legal technology. Lawyers can now reduce certain types of work by automating routine tasks such as identifying anomalies in contract clauses thereby reducing costs and turnaround times.

To realize the efficiencies and benefits of AI in contract law, lawyers must cultivate interdisciplinary skills and interests to effectively implement digital technology. This requires adapting their skills and embracing new technologies to remain competitive. Specifically, this involves:

• Acquiring knowledge for evaluating and re-engineering all phases of a contract to ensure the quality and speed of legal service (p. 88).
• Carefully assessing legal tech software based on factors such as target user, functionality, team digital competencies, existing processes, and integration possibilities (p.109-111).

As AI and legal technology continue to evolve, the legal profession must integrate legal tech to act as a new intermediary in contract negotiation and automation of tasks, driving efficiency, insights, and accessibility in legal services. This increased efficiency should allow Lawyers greater bandwidth to focus on more complex issues, adding more value to the organization.

Contracting and contract law in the age of artificial intelligence Contributors: Ebers, Martin, editor. ; Poncibò, Cristina, editor. ; Zou, Mimi, editor.  2023, Book , 324 pages. 1509950729, 9781509950720