Why AI Start-Ups in the Legal Sector is a Need of the Hour?

Why AI Start-Ups in the Legal Sector is a Need of the Hour?


Innovative start-ups involving Ai and automation continue to find ways of developing technology that will manage laborious tasks in different industries for better speed and accuracy. While artificial intelligence has had a transformative impact on every industry and profession, its potential for use in the legal profession has not been fully realized. The legal services market is still largely undigitized, tradition-bound, and slow to adopt new technologies and tools. However, due to rapid technological progress and exponentially increasing computational power, the future holds extensive use for the application of AI in the realm of judiciary,experts around the work are unanimous in predicting exponential growth in AI as a paramount technology to bring new tools and features to improve legal services and access to justice. Ai related start-ups in legal sector is turning out to be great niche for many in the west and it is high time for us to grasp this opportunity. Ai should be taken as opportunity not as a threat

In a recently published book titled “Online Courts and the Future of Justice”, Prof.Susskind contends that artificial intelligence (AI) will usher in a decade of change in the legal sector, transforming legal systems as we know it. Although automating our old ways of working plays a part in this, even morecritical is that artificial intelligence and technology will help give moreindividuals access to justice.
AI technology could be used in the future legal system to help resolve disputes without the need for lawyers or the traditional court system. It is entirely possible that within a relatively short period of time, we will have systems that can predict the outcomes of court decisions based on previous decisions using predictive analytics. Now we can consider the possibility that instead of waiting for a court date (and the support of the traditional legal system), people could use a machine learning system to predict the likely outcome of a case and then accept that prediction as a binding determination.



Law is based on a system of formal logic based on truisms culled from precedent, which is then applied to the case at hand and an inference is drawn. Because of this logic-oriented approach, law is inherently conducive to the application of machine intelligence.
Moore's Law predicts that computer power will double roughly every two years, while computing power costs will fall dramatically. This lays the groundwork for the rapid rise in AI capabilities and availability. AI processes greatly assist lawyers in devising innovative and one-of-a-kind work methods. They can effectively be applied to many problems that seem difficult for lawyers to handle, either by virtue of the complexity or because of the volumes involved in legal practice.
So far, the focus of technology in the legal system has been on assisting lawyers and their staff with some of the work they do, such as e-mail, accounting systems, word processing, and so on. In recent years, artificial intelligence (AI) in legal services has been viewed as a method of automating tasks through software to achieve the same results as if a law practitioner had done the work. Today, AI solutions in legal services can be classified into three categories: document analysis, legal research, and practice automation. Contract analysis, document review, e-discovery, and due diligence are all examples of document analysis. AI-powered document analysis tools are available from every type of companies.

Some of the examples of Ai related start-ups in other countries are:

•JPMorgan, an American investment bank and financial services holding company, has used its proprietary program Contract Intelligence, nicknamed “COIN,” to decrease its annual contract review time by 360,000 hours
•AI-based tool called FaXin created by Supreme People’s court in China help judges identify precedents.
•A company called ‘Intraspexion’ leverages deep learning to predict and warn users of their litigation risks.
•Intellectual property lawyers can use AI-based software from companies like TrademarkNow and Anaqua to perform IP research, brand protection and risk assessment.
•LegalMationan AI-based tool uses AI to automate generation of various litigation-related documents such as pleadings and discovery requests.

Introducing these AI systems as services, however, could narrow the gap between the users’ trust and technology deployment. These AI services with rich function descriptions, explicitly defined inputs, and expected outputs can be flexible and easily engineered with no or little coding to increase efficiency in system for users to simulate and test different scenarios, potentially increasing user confidence.



One of the reasons why India has been somewhat isolated from the evolution of some jurisprudence like privacy is that it has never really felt the initial impact of the new technologies like camera,telegraph etc. in quite the same way as the rest of the world. At the time when the portable camera and the telegraph first began to be widely used in the US and elsewhere in the world, India was still a far-flung colonial outpost of the British empire. We were very late with the introduction of the new technologies and when these technologies did eventually make their way to Indian shores, it wasn’t until much after they had been deployed in the west and their impact on privacy was already understood. 
But this introduction of Ai in legal sector gives us the unique opportunity to think afresh about the conundrum of Ai in legal sector and how to speed up judicial process and be level pegging with the world. 
According to a recent report from National Judicial Data Grid (District and Taluka Courts of India), it is indicated that over 2.6 crore cases are unresolved and unsettled in the Local Courts, District Courts and High Courts and considering the Supreme Court around 9% of the cases are pending for more than 10 years. On a daily basis, 30,000 cases are recorded and 28,000 cases are arbitrated. This implies that there is a daily deficit of 2000 cases that remain unresolved. This results in an annual backlog of 7.3 lack cases. Which further strengthens the point that legal sector is untapped in terms of innovation and is involving as a great niche for future start-ups



Legal technology start-ups in India are assisting in the transformation of the Indian judiciary system. A large number of Indian legal tech start-ups are developing NLP-based applications and presenting cutting-edge legal research manifestos that assist law offices in moving beyond simple, keyword-based research in a less time-consuming manner.Numerous legal start-ups are quickly ascending in AI research capabilities which is always a good sign.
Artificial intelligence is the need of the hour, and many people in the legal industry have adopted it. It is high time we come up with a proper legal framework that allows us to maximize the benefits of artificial intelligence in the legal industry while removing any risks that the industry is prone to due to the absence of any regulatory legal framework.



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