The role of AI in legal 2023

The IP world met a sharp decline in 2021 due to the Covid-19 pandemic. However, in 2022, partly due to that obstacle, the world accelerates its development with IP as one of the main tools. Specifically, digital assets have been the main story of IP with Metaverse, NFTs, blockchains, and other digital subjects that are in the gray area, and difficult to protect. In 2023, what will be the IP trend? Will the world continue its current status of AI and digital?

The digital world of AI

The fast growth of the Metaverse, non-fungible tokens (NFTs), and blockchain technology all have a remarkable influence on intellectual property rights in 2022. These assets and the matter of how to protect, and enforce the protection of such assets in the world has been a problem for many IP lawyers and government and international agencies.

Not just the above but there has also been a new concept regarding this matter, Web3.

Web 3.0 (also known as web3), is the third generation of Internet services that connect data together in a decentralized way to deliver a faster and more personalized user experience. Web 3.0 is built using artificial intelligence (AI), machine learning, and the semantic web, and uses a blockchain security system to keep information safe and secure.

In Web 3.0, data is securely stored and distributed across multiple devices, eliminating the need for centralized servers. This design reduces the risk of massive data leaks as data is no longer centrally stored in one area – making it more resilient and less vulnerable to compromises.

Currently, there have been many international trademark fillings for the content provided in digital assets. China is the top country in terms of trademark fillings. There have been many applications for marks to be exclusively used in the metaverse and other digital environments, including NFTs.

Consequently, global organizations in response to these filings have issued guidelines specific for subject of trademark filings in relation to the digital world, virtual assets, etc. The European Union Intellectual Property Office (EUIPO), clarified in their 2023 draft Guidelines that virtual goods would be classified under Class 9 as they are considered digital content, provided that such goods are explained in detail by the EUIPO’s standard.

Can AI help with legal matters?

The law is struggling with the rapid development of the internet. IP lawyers in particular and lawyers, lawmakers, in general, fear that the legal books of the world might not be drafted and published as soon as the development rate of the world.

That might be true, however, can AI help with that matter?

We have seen AI accomplish many great achievements and clearly, we as the creator of AI, also support such development. This can be seen with the continuing legal batter of Dr. Thaler, trying and succeeding in many parts to make the world recognize DABUS, an AI as an inventor.

Therefore, can AI help lawmakers with drafting and testing, analyzing the logic of law as well as its consequences? The answer is to be discussed but at the moment, AI has already been helping IP lawyers in many fields.

One notable example is Legal Tech. Legal Tech is not a company, rather, it is a concept of technology and legal that aims to break the current status of clients and lawyers, which is considered to be too traditional, and conservative.

That is why Legal Tech companies provide legal services to clients without the involvement of a real lawyer. That being said, Legal Tech’s purpose is not to eradicate lawyers and their roles in society. That’s why in Legal Tech’s list of services, the automatic function of drafting basic legal contracts and provisions are highlighted for legal individuals and organizations.

Both the clients and legal personnel might be the client of Legal Tech.

According to some law firms that have been utilizing Legal Tech’s services, they expressed that Legal Tech is a value-added component to law firms’ efficiency, reducing time spent on more repetitive, predictable duties that don’t exactly need an experienced lawyer to handle.

Such daunting tasks are usually handed over to legal interns or assistants. However, to be more coherent in the method of resolving, software from Legal Tech is a recommendable method for legal firms, to allow lawyers to focus their resources on a more suitable matter while maintaining the quality of repeating works.

These advances, particularly AI, would undoubtedly assist the legal profession at the moment and in the future, both near and far. AI-based technology will aid the legal profession by augmenting its staff and providing ready-made solutions for traditional labor done by humans.

Legal companies in Southeast Asia have used software tools such as SmartLaw and AskAILA (AI-based application trained and equipped with Malaysian labor law and regulations, providing virtual assistance around the clock) to help with legal research, contract assessment, and legal advice. These AI-powered software apps can help law firms by quickly skimming through thousands of documents and answering legal inquiries.

However, this kind of technology is still not quite popular in 2023 in many regions partly due to the costs as well as the needs of lawyers. The risk of being liable for professional negligence due to the overabusement of AI without double checking the contents may also be a hindrance to the urge to use such services of law firms despite the high rate of accuracy of AI software. 

Can AI replace all the functions of a lawyer?

While technology has made things easier and more efficient, many professionals in both the IP and general legal fields believe that some law firms should go back to fundamentals, that is, not rely too much on AI to solve all of their matters.

There are some big law firms in the world with no use of AI in their legal system, especially not with the task related to contracts with clients and other parties as it should be dealt with extra care. These companies believe that such matters should be dealt by an experienced hand with actual experience with clients and similar cases as there will be no identical cases in the world.

If the company meets a difficult client, can an AI understand human emotions to negotiate and flexibly change the price of the law firm’s services to best suit the acceptable range of the client?

If the client wants to change the contract with off-the-grid provisions, only available between the lawyer and the client face-to-face, can the AI replace that?

From their POV, AI can’t just copy and paste every provision to different cases, potentially making a huge mistake, and damaging their reputation and monetary value. With such doubt in mind, they can’t trust to hand AI to work with clients. Even just the work of reviewing contracts made by AI or letting AI review contracts is questionable. 

In addition, at the moment, AI is dead. It can only solve cases that are extremely similar to the information that has been provided. If there are new aspects and concepts such as the introduction of digital assets protection on the Internet, AI won’t be able to fully function as a human lawyer, at least not right now. Without changes and a touch of personal care from a human hand and guidelines, AI will inevitably fall back on previously established patterns of thinking or action, with no advancement in the underlying legal principles to develop society.

Nonetheless, these companies won’t opt out of the use of AI completely or completely rely on AI. Their opinion is that at the moment, in 2023, the role of AI to deal with legal matters is not completely necessary. Instead, they rather trust the judgment of a lawyer for now. In the future, when AI has proved that it can replace parts of the works with high efficiency, they might consider implementing it in their system.

Should AI replace lawyers?

AI is very smart. However, it can not replace the role of lawyers as lawyers are also smart but with emotion, and reasoning to think before and into the future.

Yes, AI can help judges and lawyers skim through thousands of legal documents worldwide – a task that they themselves can’t do, but it won’t have the necessary technologies to extract the value of such documents as well as the meaning hidden inside.

To learn and read is one thing, but to apply it to real cases will be another matter completely.

Besides, if we are talking about the complete change of the legal system to AI, would it be too dangerous to put the law to handle human lives in the hand of an AI? What if it malfunctions and puts out the wrong judgment? Will the government act swiftly to handle such matters?

The future ahead is a gray area with no one can predict how it will turn out. For AI and legal, we should take careful steps before implementing a ‘robot’ into our system. Oversight is necessary and vital when handling AI lawyers.

AAA IPRIGHT – Global IP – Global Trademark Registration

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