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Artificial Intelligence

Why legal professionals need purpose-built agentic AI

Frank Schilder  Thomson Reuters Labs

· 11 minute read

Frank Schilder  Thomson Reuters Labs

· 11 minute read

Expert insights on distinguishing between consumer AI tools and purpose-built legal technology that meets professional standards

Highlights

  • Professional-grade agentic AI systems are architecturally distinct from consumer chatbots, utilizing domain-specific data and robust verification mechanisms to deliver the high accuracy and reliability essential for legal work, whereas consumer tools prioritize conversational flow using unvetted web data.
  • True agentic AI for legal professionals offers transparent, multi-agent workflows, integrates with authoritative legal databases for verification, and applies domain-specific reasoning to understand legal nuances, unlike traditional chatbots that lack this complexity and autonomy.
  • When evaluating legal AI, professionals should avoid solutions that lack workflow transparency, offer no human checkpoints for oversight, and cannot integrate with professional databases, ensuring the chosen tool enhances, rather than replaces, expert judgment.

The world of legal technology has become saturated with AI-powered solutions promising to reinvent how law firms and legal departments operate. Yet beneath the marketing, a critical distinction emerges between consumer-grade chatbots and professional-grade agentic AI systems — a difference that could determine whether your investment in legal AI delivers genuine value or merely sophisticated conversation.

For legal leaders managing complex cases, voluminous document reviews, and high-stakes research, understanding this distinction isn’t just technical curiosity — it’s strategic necessity. The stakes in legal work demand AI systems built for precision, transparency, and professional accountability, not engaging chat experiences.

In part one of this three-part blog series on agentic AI, we interviewed our resident AI expert, Frank Schilder, senior director of applied research in Thomson Reuters Labs, to provide you with insights into the distinctions between professional-grade agentic AI and public AI tools like ChatGPT, the differences between chatbots and agents, and red flags to look for when choosing your AI provider.

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Technical foundations and why architecture determines capability


Understanding AI agents versus traditional chatbots


Domain specificity requirements for legal research and document analysis


Red flags to avoid when evaluating AI legal solutions


How true agentic AI enables human oversight and decision-making


Legal AI solutions that support professional judgment

Technical foundations and why architecture determines capability

The fundamental differences between consumer and professional AI systems begin with their underlying architecture and extend through their approach to reliability and accuracy.

“A medical researcher might need to understand the latest research results and potential contraindications for a newly developed drug treating a rare medical condition, whereas as a consumer, I may want to know all possible treatment options for a common disease like pinkeye,” offers Schilder as an example. “Both types of systems use agent-based technology, with the former designed to meet the rigorous demands of specific professional domains and the latter geared toward general-purpose conversation. But the bar for delivering consistently high-quality answers is lower for consumer-facing AI tools.

“Professional-grade agentic AI systems typically rely on domain-specific tools and data, requiring a robust architecture to retrieve and verify information and produce reliable answers. In contrast, consumer-facing tools like ChatGPT draw upon web sources and cannot guarantee that answers are thoroughly vetted,” he explains.

This architectural distinction has profound implications for legal work. Consumer AI tools are designed for general conversation across broad topics, drawing from web-based training data that might include outdated, inaccurate, or irrelevant information.

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Professional-grade agentic AI systems are built with specialized databases, verification mechanisms, and the domain-specific reasoning capabilities that professional work demands.

“Professional-grade systems require high accuracy and reliability to provide trustworthy results, whereas consumer-facing tools often prioritize conversational flow over precision. For example, a medical diagnosis chatbot must be able to accurately identify diseases based on patient symptoms, whereas a general-purpose chatbot may focus on providing engaging responses with links to medical authorities that consumers should verify before taking any advice,” Schilder notes.

In legal contexts, the difference between “approximately correct” and “precisely accurate” can determine case outcomes, regulatory compliance, or client satisfaction. Legal professionals need AI systems that can distinguish between binding precedent and persuasive authority, current law and superseded statutes, or applicable jurisdiction and irrelevant case law.

Understanding AI agents versus traditional chatbots

To fully grasp why legal professionals need purpose-built solutions, it’s essential to understand what defines an AI agent versus a traditional chatbot.

“In the context of AI, an agent is a computer program that interacts with its environment and adapts to its dynamics through learning and feedback,” Schilder explains.

“Agents can be found in various domains, including robotics, finance, and healthcare, where they demonstrate their ability to perceive their surroundings, reason about them, and take actions to achieve specific goals.”

Traditional chatbots, by contrast, “are AI systems that rely on natural language processing (NLP) to understand and respond to human input. Historically, chatbots operated within pre-defined rules and scripts, lacking the autonomy and adaptability characteristic of true agents.”

However, this technology has evolved significantly. “The release of ChatGPT, powered by large language models (LLMs), enabled natural conversations through a typical chat interface. The underlying technology has dramatically changed since the early days and agentic workflows now also power many of the AI chatbots available to us,” notes Schilder.

This evolution creates both opportunities and confusion for legal professionals. While some modern chatbots incorporate agentic capabilities, many marketed as AI legal solutions remain fundamentally limited by their chatbot architecture.

In summary, agents are AI systems that interact with their environment, learn from experience, and adapt to new situations. While traditional chatbots possess NLP capabilities, they lack the autonomy and complexity characteristic of true agents.

Legal work operates within a highly specialized domain with unique terminology, procedural requirements, and analytical frameworks that generic AI tools cannot adequately address.

“Professional-grade agentic AI systems are designed to operate within specific domains or industries, such as healthcare, finance, or law, requiring extensive knowledge of the domain and its nuances, as well as the ability to provide tailored solutions,” explains Schilder.

Consider the complexity of contract review, which requires understanding not just literal text but also implied terms, industry standards, regulatory compliance requirements, and potential risk factors.

A purpose-built legal AI system would incorporate specialized legal databases, understand jurisdictional differences, and apply legal reasoning frameworks that generic chatbots simply cannot access or comprehend.

Legal research demands understanding of hierarchical authority, temporal relevance, and jurisdictional applicability — concepts that require specialized training and domain-specific architecture rather than general conversational ability.

When a legal professional researches precedent for a complex commercial dispute, they need an AI system that understands the weight of different court decisions, the evolution of legal doctrine, and the specific factual distinctions that make cases relevant or distinguishable.

The proliferation of AI products has made it challenging to distinguish genuine capability from sophisticated presentation — a process that requires careful evaluation.

Schilder provides valuable insight: “AI seems to be in every product nowadays — even my washing machine now has AI to decide how long the program should run to clean my laundry. While there may be an algorithm optimizing the washing cycle based on probabilities, does it really help me achieve my goal of saving energy, for example?”

He advises that to distinguish true agentic AI from glorified chatbots, “professionals should look for solutions that offer transparent workflow management, multi-agent architecture, and integration with databases or information retrieval systems for verification.”

Legal professionals should watch for several critical red flags when evaluating AI solutions:

  • Lack of workflow transparency. Systems that cannot explain their reasoning process or provide step-by-step justification for conclusions are unsuitable for legal work, in which audit trails and defensible analysis are essential.
  • Limited verification capabilities. AI tools that cannot cross-reference conclusions with authoritative legal sources, provide proper citations, or enable independent verification of results offer conversation without professional utility.
  • Absence of multi-agent architecture. Systems that rely on single-agent processing cannot handle the complex, multi-step workflows that legal work demands, lacking the collaborative intelligence necessary for tasks such as simultaneous research verification, document analysis, and precedent cross-referencing.
  • Generic outputs across legal domains. Solutions that provide similar responses regardless of practice area, jurisdiction, or case complexity likely lack the specialization necessary for professional legal applications.
  • No integration with professional databases. Tools that cannot connect with legal research platforms, case management systems, or court databases might offer engaging interaction without access to the authoritative sources legal work requires.
  • Automated decision-making without human checkpoints. Systems that operate end-to-end without opportunities for professional review, validation, or course correction eliminate the human oversight essential for legal accountability and risk management.
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How true agentic AI enables human oversight and decision-making

The most critical distinction between consumer chatbots and professional-grade agentic AI lies in their approach to human judgment and professional control.

“A true agentic AI system will allow users to insert human judgment and decision-making at various stages of the process, ensuring control over the final product. In contrast, chatbots might lack transparency and control, relying solely on pre-programmed rules, scripts, or just a call to an LLM,” Schilder emphasizes.

This capability proves essential in legal contexts where professional judgment cannot be automated away. True agentic AI systems enable legal professionals to maintain control over critical decision points while using AI capabilities for research, analysis, and document processing.

“Consider a professional who needs to create a complex report that requires analyzing large datasets and making informed decisions,” says Schilder. “A true agentic AI system would enable them to design the workflow, insert human judgment at key stages, and verify the results with data retrieved from a database. In contrast, a chatbot might simply generate a report based on pre-programmed rules without allowing for human input or verification.”

For legal professionals, this means maintaining the ability to evaluate AI-generated research for relevance and applicability, review document analysis for completeness and accuracy, and make strategic decisions about case direction based on AI-assisted insights rather than AI-generated conclusions.

The choice between consumer-grade chatbots and professional-grade agentic AI systems will significantly impact your firm’s or department’s ability to use AI effectively. “By evaluating the technical capabilities and limitations of a solution, professionals can make informed decisions about which tools will best support their goals and workflows by working together with the agentic AI instead of just taking the output of a simple chatbot interface,” Schilder concludes.

Legal professionals require solutions built for their specific domain challenges — systems that prioritize accuracy over engagement, provide transparency over conversation, and enable professional control over automated responses.

As you evaluate AI solutions for your work, focus on technical capabilities rather than marketing promises. Seek systems that offer domain-specific knowledge, verification mechanisms, transparent workflows, and integration with professional legal databases.

Most important, ensure that any AI system enhances rather than replaces professional judgment. The future of legal AI lies not in replacing legal professionals but in enabling them to amplify their expertise with tools worthy of their training, experience, and responsibilities. Choose accordingly.

To learn more about agentic AI and how it can help legal professionals optimize their workflow, sign up for our webinar.

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