AI for Law Firms

A practical guide to contract review, due diligence, and legal research workflows that actually work.

The Reality

Associates billing $400-600/hour are spending significant time on document review that AI can handle in minutes. The firms that figure this out first will have structural advantages in efficiency, capacity, and—eventually—pricing.

This guide covers the five workflows that forward-thinking firms are implementing right now, along with the considerations that matter for legal work.

70-80%
Time savings on contract review
50-70%
Faster DD document analysis
$200K+
Annual capacity unlocked

Workflow 1: First-Pass Contract Review

70-80% time savings

AI excels at identifying non-standard terms, missing clauses, and risk areas. The attorney still exercises judgment—AI just surfaces what needs attention.

Sample Prompt

"Review this agreement against standard market terms for [agreement type]. Flag: (1) Non-standard provisions that deviate from market, (2) Missing standard protections, (3) Unusual obligations or restrictions, (4) Risk areas requiring partner attention. For each flag, quote the relevant language and explain the concern."

Workflow 2: Document Comparison & Redlining

60-70% time savings

Compare contract versions, identify changes, and get plain-English explanations of each modification's legal and commercial impact.

How It Works

  • Upload both versions of the document
  • AI identifies every material change, not just word-level differences
  • Get explanations of why each change matters
  • Generate summary for client communication

Workflow 3: Due Diligence Document Analysis

50-70% time savings

Create extraction templates for each document type. AI populates your DD tracker while associates verify and investigate flagged items.

Implementation

  • Define extraction fields for each document category
  • Run AI extraction across document sets
  • AI flags items requiring human review
  • Associates verify, investigate, and escalate

Workflow 4: Legal Research Assistance

40-60% time savings

AI can outline relevant law, identify key cases, and draft initial analysis. Use it to accelerate research, not replace it.

Critical Warning

Always verify citations manually. AI can hallucinate case names, misstate holdings, or cite non-existent authorities. Use AI to find directions to explore, then verify everything through Westlaw/Lexis.

Workflow 5: Client Communications

50-70% time savings

Draft engagement letters, status updates, and routine correspondence. Build a prompt library with examples that match your firm's voice.

Best Practices

  • Provide examples of prior communications in desired style
  • Specify tone, length, and key points to cover
  • Always review for accuracy and appropriateness
  • Build firm-specific prompt templates over time

Confidentiality & Ethics Considerations

Key Considerations

AI implementation in legal contexts requires careful attention to confidentiality, privilege, and professional responsibility. These considerations shouldn't stop adoption—they should guide it.

Ready to Implement AI at Your Firm?

Book a free consultation. We'll identify the highest-ROI opportunities for your practice areas and help you navigate implementation.

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