Chapter 12: Transformative Change and the Future of AI in Law Practice

Chapter Overview

Welcome to Chapter 12, our final chapter! We will examine how artificial intelligence is reshaping the practice of law, moving beyond simple automation to fundamentally changing how legal services are delivered. We will take a close look at online courts and virtual proceedings, explore how contracts are drafted and negotiated using AI, review new forms of AI-driven dispute resolution, and discuss the ethical, regulatory, and social questions that arise as our profession embraces these technologies.

Many legal visionaries, including Richard Susskind and Mark A. Cohen, predict that AI will lead to a redefinition of what it means to be a lawyer. I wholeheartedly agree. Already, we are seeing significant shifts, from the widespread adoption of ChatGPT and Claude, to experimentation with AI agents, and within legal, AI-powered legal research platforms, online courts, end-to-end automated contracts, and AI tools that mediate or predict litigation outcomes. By the end of this chapter, you should have a firm grasp on the ways AI is expected to change legal work in the years ahead and how you can prepare to take part in leading that transformation.

Upon successful completion of this chapter, students should be able to:

  1. Explain how AI-driven technologies are transforming traditional legal workflows and service delivery models.
  2. Analyze the benefits and challenges of online courts, automated contracts, and AI-based dispute resolution for different stakeholders.
  3. Evaluate the ethical, regulatory, and social implications of integrating AI tools within legal practice.
  4. Design a strategic plan for implementing AI-enhanced solutions in a law firm or legal department, taking into account ethical standards, client needs, and access to justice.

Let us begin by exploring the broader context in which AI is transforming the legal landscape, starting with the rise of online courts and remote proceedings.

The Rise of Online Courts

Before 2020, a handful of courts in the United States explored online dispute resolution (ODR) for minor cases, examples include Franklin County, Ohio, and the West Valley City Justice Court in Utah. By 2018, Utah made ODR mandatory for specific small claims, allowing parties to negotiate through chat, upload documents, and finalize settlements digitally. All of this unfolded quietly until the COVID-19 pandemic accelerated the shift to virtual hearings. Judges and court administrators who had never imagined presiding over remote trials suddenly conducted entire dockets via video conferencing platforms.

Benefits of Online Courts

1. Accessibility and Convenience

2. Cost Reductions

3. Expanding Reach

Key Term: Online Dispute Resolution (ODR)
A method of resolving disputes using digital platforms, where parties can negotiate, share evidence, and even reach binding agreements without traditional, in-person court proceedings.

Challenges and Fairness Concerns

1. Due Process and Perception of Fairness

Some critics worry that virtual hearings may undercut a party’s right to be “present” in front of a judge or jury. The legal system is built on centuries of tradition—like the ability to observe witnesses face-to-face—and moving those interactions online can raise questions about fairness and transparency (Florida Supreme Court, 2023). Courts have to ensure parties still have a meaningful opportunity to participate and that no one is unfairly disadvantaged.

2. Digital Divide

3. Security and Privacy

Despite these challenges, the general consensus is that online courts are here to stay. They have demonstrated how technology can open the justice system to broader participation and reduce backlogs. Courts and lawyers who embrace these methods will likely remain at the forefront of modern legal services. Let's take a look at a great example of online courts done right.

Case Study: Online Court in British Columbia

The Civil Resolution Tribunal (CRT) in British Columbia, Canada, offers one of the world’s most prominent examples of online dispute resolution woven directly into a public justice system. Established under the Civil Resolution Tribunal Act in 2012, the CRT initially focused on handling small claims and condominium (strata) disputes. Over time, its jurisdiction expanded to include motor vehicle accident disputes, Societies Act and Co-operative Association Act disputes, and other areas of civil law.

The CRT is designed around a four-stage process:

  1. Intake and Solution Explorer: Applicants use an online tool called the Solution Explorer to learn about their legal options and prepare a Dispute Notice, which is then filed online. Respondents receive notice and have a set time to respond.
  2. Online Negotiation: After the response is filed, both sides attempt to negotiate a resolution through the CRT’s online platform. If they reach an agreement, the dispute ends without further steps.
  3. Facilitation: If negotiations fail, the CRT’s staff facilitates discussion, sometimes by phone or email. Parties may exchange evidence and clarify legal points.
  4. Adjudication: When facilitation does not yield a settlement, a tribunal member reviews evidence, hears arguments—often in writing or via videoconference—and issues a binding decision. Parties unhappy with the result can petition the BC Supreme Court for a judicial review.

The CRT’s use of digital technology aims to streamline the resolution of minor disputes and broaden access to justice. While certain limits (such as self-representation in most cases) remain controversial, the CRT model demonstrates how an online tribunal can function effectively. With clear rules that are reviewed and updated regularly, along with multiple dispute-resolution methods (negotiation, facilitation, adjudication), the CRT has carved out a distinctive path that blends technology with user-friendly, step-by-step processes.

Many legal experts view the CRT as a blueprint for online courts worldwide. As more jurisdictions adopt similar approaches, lawyers must adapt. Representing a client who is “appearing” online demands new strategies, such as ensuring the client knows how to use the tribunal’s systems and upload evidence properly. Ultimately, the CRT’s experience suggests that online courts can work—provided they address digital access, maintain fairness, and keep user needs in focus.

Automated Contracts

AI’s potential is vividly illustrated by the rise of automated contract processes. Today, many attorneys use generative AI systems like ChatGPT or Claude to produce a first draft of an agreement in a matter of seconds. This shift allows lawyers to skip the manual, repetitive act of stitching together boilerplate clauses and instead concentrate on refining key deal points.

Speed and Efficiency Gains

In practice, attorneys may input high-level details (such as the parties involved, the basic subject matter, and any unique requirements) into an AI-based tool. The system then returns a preliminary version of a contract. Law firms report that these AI-generated drafts save substantial time, with some lawyers saying it provides a “solid first pass” about 60% of the time. Lawyers surveyed by Thomson Reuters in 2024 reported that AI often produced a useful “basic starting point,” which they then revised and polished. Generative AI can eliminate hours of formatting and repetitively inserting standard language. This allows more time for strategic thinking and less for busywork.

However, it is crucial to remember that AI does not replace human review. Lawyers must carefully verify that each provision aligns with local laws, does not conflict with client interests, and accurately addresses unique business terms. Judges in some jurisdictions now ask attorneys to confirm that any AI-created text has been checked for validity. This cautionary stance emerged after incidents where AI “invented” case citations or delivered flawed clauses without context.

Transforming Contracting

More advanced AI systems offer support for contract negotiation. For instance, contract review platforms such as RobinAI and Spellbook compare new agreements against a company’s “playbook” of acceptable terms. If a draft contract includes a clause that deviates from the norm, the system flags it for the attorney to review. But the next frontier is AI tools that actively negotiate terms on behalf of each side:

Smart Contracts on Blockchain

Smart contracts are self-executing agreements stored on a blockchain, meaning once certain conditions are met, the code automatically performs the contract terms (like transferring funds). Businesses have begun to use these for supply chain payments, insurance payouts, and intellectual property licensing (e.g., Ethereum Foundation, 2023).

For lawyers, smart contracts require working hand-in-hand with technologists to ensure the code accurately reflects the legal terms. If the code fails or needs revision, lawyers might also become “smart contract auditors,” ensuring that the self-executing processes comply with the law.

Key Term: Smart Contract
A contract whose terms are encoded in software and automatically execute upon specified triggers, without direct human intervention.

Lawyer's Evolving Role

Some commentators worry that new lawyers might lose out on early training experiences if they rely too heavily on AI to do the “grunt work.” Others argue that junior associates will still gain experience overseeing the AI’s output, advising clients on strategic decisions, and troubleshooting errors. Whether we see an overall reduction or shift in entry-level tasks, it is clear that contract drafting is evolving, rapidly transforming from a predominantly manual process to one in which a lawyer is an editor, negotiator, and strategic advisor supported by AI tools.

Automation doesn’t mean lawyers become obsolete. Instead, it shifts their focus to:

Example Scenario
“Sarah the Startup Lawyer” uses an AI drafting tool to create initial NDAs for new clients. These NDAs pop out in under a minute. Sarah then customizes them to address each client’s specific concerns, like data security or intellectual property. Thanks to the AI’s speed, Sarah can handle more clients, and she has more time to advise them strategically rather than cranking out boilerplate text.

AI-Driven Dispute Resolution

Mediation is a voluntary process where a neutral third party helps disputing sides negotiate a resolution. Now, some companies are building AI-based mediation platforms, such as TheMediator.AI, BotMediation.com, and ODR.com (acquired by the American Arbitration Association) that can analyze each party’s position and suggest settlement options.

Some features of AI dsipute resolution include:

While AI can streamline the process, human mediators argue that*emotions and empathy are a huge part of resolution. A purely AI-driven approach might overlook emotional nuances like anger or the need for apologies. Thus, a hybrid approach, where an AI tool assists a human mediator, may be the more balanced solution.

Practice Pointer: Hybrid Mediation
If you consider using an AI mediator, be prepared to oversee the emotional aspects yourself. Use AI to generate data-backed settlement ranges, but don’t let it replace genuine human connection—often critical for dispute resolution.

Predictive Analytics in Litigation

AI also appears in litigation strategy, especially in the form of predictive analytics. Using large databases of past rulings, settlement amounts, or judge-specific decisions, AI can forecast: (1) The likelihood of winning a case; (2) Potential settlement values, (3) How long litigation might last; and (4) Which arguments certain judges or arbitrators tend to favor. By comparing the current case’s facts to patterns in thousands of historical cases, the AI suggests a probable outcome. This helps lawyers decide whether to settle or go to trial.

  1. Litigation Avoidance: With clearer data on potential outcomes, parties may opt to settle early, saving time and money.
  2. Better Risk Assessment: Companies can handle legal budgeting more effectively, reserving enough funds for likely judgments.
  3. Ethical & Reliability Issues: Overreliance on AI predictions can be dangerous if the underlying data is biased or incomplete. Lawyers must exercise independent judgment.

Example Scenario
“Jackson & Lee Law Firm” uses a predictive analytics tool that shows an 80% chance a personal injury case will settle for under $100,000. The tool draws on data from thousands of similar suits. Based on that prediction, the firm advises its client to propose a settlement within that range rather than engaging in lengthy (and expensive) litigation.

Concerns About Over-Automation

Meanwhile, the legal community remains vigilant about “automation bias,” where users place undue trust in AI outputs. Judges in Texas and New York have issued orders requiring attorneys to verify that any AI-written filing is accurate and to disclose AI’s role in preparing the document. The idea is that while AI can handle tedious tasks—such as sorting through thousands of discovery documents or finding patterns in complex data, humans must still take final responsibility.

Most experts predict that AI will not replace human judges or arbitrators in the near future. Instead, it will support them by handling data-heavy tasks, like sorting through hundreds of pages of documents or analyzing patterns of past decisions, freeing judges and arbitrators to concentrate on the actual hearing and final decision.

Overall, AI’s role in dispute resolution is best understood as an augmentation tool rather than a replacement for human judgment. Human legal professionals must remain involved to handle emotional dynamics, rare or novel legal questions, and the ethical considerations that inevitably arise when managing conflicts.

As AI integrates more deeply into legal services, policymakers and bar associations are grappling with its ethical and regulatory dimensions. The federal government is taking a laissez-faire approach. At the state level, jurisdictions such as Utah and Arizona have experimented with “regulatory sandboxes,” allowing non-traditional legal service models to operate under supervision.

Ethical rules also continue to evolve. Attorneys must be transparent about AI’s role in their work, remain vigilant against data bias, and maintain confidentiality when uploading client documents to AI platforms. As noted in earlier chapters, we cannot offload our professional responsibilities onto a tool. The lawyer who uses AI still bears full accountability for any resulting errors.

AI’s broader social impact cannot be overlooked. On one hand, lower costs and new platforms might help narrow the “justice gap” by offering affordable legal services to those who traditionally cannot hire an attorney. On the other hand, advanced AI tools might remain financially out of reach for small firms or public interest groups, potentially widening inequities. And as tasks such as document review become automated, some roles in the legal profession may shrink or disappear, even as new roles, such as legal technologists and AI ethics advisors, emerge.

Ultimately, public trust in the justice system hinges on fairness, accessibility, and transparency. If AI decisions appear arbitrary or inscrutable, skepticism is bound to increase. Careful implementation and oversight, plus ongoing dialogue about what AI should and should not do, will be critical for preserving the profession’s integrity.

Historically, the legal field has been conservative about adopting new tech. But the pace of innovation has reached a point where caution must be balanced with opportunity. As lawyers face these sweeping changes, you can carve out a leadership role by developing both core legal skills and “AI fluency.” Communication skills that bridge the gap between law, technology, and clients are also key. Many legal educators call for interdisciplinary teams, where an attorney collaborates with coders, UX designers, or data scientists to implement AI solutions in ways that align with ethical obligations.

Key Term: Legal Technologist
A professional, often with both legal and technical skills, who helps law firms or legal departments implement and manage technology solutions, including AI tools, to enhance efficiency and service quality.

Crucially, no amount of technology will solve every legal issue or guarantee perfect justice. Lawyers’ empathy, creative thinking, and adherence to ethical principles remain indispensable. Those who seize the opportunity to integrate AI responsibly can raise the bar for service quality, making legal help more efficient and more accessible. Those who resist change may find themselves at a disadvantage as clients gravitate toward providers who deliver quicker, data-informed solutions.

Practice Pointer: Lifelong Learning
The rapid advancement of AI means your training cannot stop after law school. Look for continuing legal education (CLE) classes on AI and data analytics, attend webinars, read tech publications, and consider cross-disciplinary networking opportunities (e.g., with IT professionals, data scientists, or entrepreneurs).

Remember, AI is an evolving field. Keep learning, stay curious, and do not hesitate to question the outputs you receive. If an AI claims that “this clause is unenforceable,” verify that assertion. When used wisely, AI can make you a more effective lawyer. It can free you from repetitive chores so you can focus on the tasks that truly require human intelligence—building trust, advocating for fairness, and solving problems that demand moral and creative insight.

The “Deep Legal” approach reimagines legal representation by shifting from reactive firefighting to proactive risk management. Using AI-powered tools that monitor client operations continuously, lawyers can detect and address potential legal issues before they escalate. This kind of system might track regulatory changes, scan contracts for unusual clauses, or flag suspicious patterns in financial transactions.

The ultimate advantage of real-time monitoring is that lawyers are no longer called only after the fact, when the damage is done. Instead, they become strategic partners who ensure their clients operate within legal guardrails at all times. This new model also challenges the traditional billable hour. In many cases, lawyers can charge a subscription fee for ongoing monitoring, real-time advice, and rapid intervention when an alert surfaces. As AI reduces the time spent on manual tasks, attorneys remain vital for high-level analysis, strategic counseling, and addressing exceptions that do not fit neatly into an algorithmic framework.

By piloting these systems on a small scale, perhaps for one department or a particular type of contract, lawyers can demonstrate value. From there, they can expand coverage to more of the client’s operations, ultimately creating a seamless, tech-powered partnership. Like online courts, automated contracting, or AI-driven mediation, the Deep Legal approach shows how AI is enabling a fundamental shift in how we view legal services.

Chapter Recap

This chapter traced the broad, and rapidly unfolding, changes AI has brought to legal practice. We explored the rise of online courts, where litigation and settlement can often happen entirely online, and saw how the Civil Resolution Tribunal in British Columbia provides a real-life example of a successful ODR system. We then shifted to fully automated contract processes, noting how AI helps attorneys draft and negotiate agreements in record time, with further automation possible through blockchain-based smart contracts.

In the realm of dispute resolution, AI-based mediation and predictive analytics are making waves, though human oversight remains essential to handle emotional complexities and ensure fairness. All of these developments highlight the importance of ethical, regulatory, and social frameworks that guide responsible AI usage. Finally, lawyers who adapt and develop data literacy, tech fluency, and collaborative skills will be well-poised to lead in an AI-enhanced future. The “Deep Legal” model demonstrates how continuous monitoring and proactive counsel can deliver new value to clients, reinforcing that while AI can handle much of the drudgery, strategic thinking and empathetic advocacy are still best left to human lawyers.

Final Thoughts

Congratulations on reaching the final chapter of this textbook! It's been a journey for me too writing it for you! Together, we have surveyed everything from how generative AI works, to its real world implications, ethical considerations, impact on social justice, and envisioned the future of the legal profession. The overriding theme is that legal innovation is accelerating, and lawyers must adapt to remain effective and relevant.

Far from making lawyers obsolete, AI frees us from monotonous tasks, enabling deeper strategic thinking, more human-centered counseling, and imaginative problem-solving. These uniquely human qualities (empathy, moral reasoning, persuasive communication) are what truly define great lawyers. The best path forward is to embrace AI as an ally and collaborate with technologists, clients, and policymakers to guide it ethically and responsibly.

You are now better equipped to navigate and shape this future. As a new generation of law graduates, your willingness to experiment with AI tools, challenge outdated processes, and champion ethical innovation will be instrumental in guiding the profession toward a more accessible, fair, and dynamic system of justice.

What’s Next?

This concludes the core content of our textbook, Generative AI and the Delivery of Legal Services. The only thing that remains is your Capstone project, where you will apply the concepts, tools, and ethics frameworks we’ve covered to propose a practical AI-driven solution for improving legal services. This project will give you hands-on experience with the same types of issues real lawyers face when implementing AI in their practice.

In that final project, you will have a chance to demonstrate:

Thank you for joining this exciting journey into the future of legal services. Remember, while technology evolves rapidly, the core mission of law, pursuing justice, solving disputes, and serving clients with integrity, remains constant. As you step forward with your new insights and skills, you stand poised to become a leader in our AI-enhanced legal world.

Good luck, and enjoy shaping the future of the legal profession! The possibilities are endless, and with careful guidance, AI can help us build a more accessible, efficient, and fair system of justice.