EBOOK

Generative AI facts and fallacies

Uncover four common truths and misconceptions about GenAI for legal professionals

With its lightning speed and impressive ability to create material, generative artificial intelligence (GenAI) has catapulted to the forefront of conversations around water coolers and boardroom tables. It has impressed — and perhaps intimidated —professionals in every realm, including the legal industry. With chatter this pervasive, something needs to be made clear — some of those conversations contain fallacies as well as facts. It is important that you, a legal professional who wants to stay at the top of their game, know the difference.

The speed with which GenAI — broadly defined as AI systems capable of generating new content, images, or data — has evolved provides both untold opportunity and serious challenges for professionals of all kinds, and those in the legal industry are no exception. From drafting complex contracts in seconds to analyzing vast data sets with increased efficiency, GenAI technology is revolutionizing traditional workflows. However, its rapid adoption also raises legitimate questions about ethical use, data security, and regulatory compliance. Legal professionals in particular must navigate a delicate balance between harnessing GenAI's power and ensuring their use of the technology aligns with existing legal standards. Keeping on top of these changes is crucial for legal professionals wanting to retain their competitive advantage and leverage GenAI.

In this e-book, we will look at some of the most common fallacies and facts about GenAI to help professionals across the legal industry.

Who’s using GenAI in the legal industry and how?

Before we dive in, let's take stock of where things stand.

As is often the case with new technology, adoption of GenAI in the legal field seemed slow at first but won't stay that way forever. In fact, adoption of GenAI is quickly accelerating.

The future of GenAI use in the legal profession may be even brighter. According to the 2024 Future of Professionals Report, AI-powered technology will give every professional 200 extra hours in 2025.

Regardless of whether GenAI adoption has been slow to reach your corner of the legal industry or you and your coworkers were early and enthusiastic adopters, use of GenAI is certain to increase. Embracing GenAI means less time-consuming, monotonous work and more fulfilling, complex, and valuable work. For practitioners to make that transition, they need a strong command of what is and isn’t true when it comes to GenAI.

GenAI facts and fallacies

The discussion around GenAI contains some fiction and fact, some hyperbole and honesty. A legal professional who cannot distinguish between the two will be ill-prepared to incorporate GenAI effectively and efficiently into their workflow. Let’s look at some of the most common fictions and truths:

Fallacy No. 1: GenAI will replace professionals

Few people would argue that the material GenAI creates is anything short of impressive, even when it isn’t perfect. It can write witty limericks in the blink of an eye, summon images of imagined worlds in no time flat, and breeze through dense, esoteric material and create a summary like it’s no challenge at all. For legal professionals, GenAI’s ability to whip up a sample lease agreement or a checklist for an M&A transaction in mere seconds is truly jaw-dropping. Understandably, GenAI’s formidable power has left some professionals feeling uneasy about the value of their skills.

Fact No. 1: GenAI won’t replace professionals who use it to amplify their strengths

Think about all of the qualities that make you, a legal professional, good at what you do. You understand the law can communicate clearly with fellow legal professionals and laypeople alike. But there is so much more to your job than that, and a lot of it is the sort of expertise-fueled, judgment-driven work that GenAI cannot do for you. It cannot replicate the deftness necessary for productive client relationships, demonstrate the emotional intelligence required to navigate sensitive cases, or assume the ethical responsibility of delivering sound legal advice. These are solely human capabilities. There is a risk that legal professionals who do not embrace GenAI might find themselves behind those who do, but it is not inevitable that you — or anyone — fall into the former category. The more you can embrace GenAI and channel its power and productivity to make you more efficient and effective, the better positioned you will be.

Fallacy No. 2 GenAI can do all your work for you without oversight

In some respects, GenAI seems like an absolute dream. If it can produce a decent summons or draft an insightful interrogatory, then there must be nothing for you to do but sit back and relax, right?

Fact No. 2: As powerful as GenAI is, a human must always be in the loop

GenAI is eye-popping, but it cannot be trusted blindly or relied upon completely. This is especially true in professions, like law, where advanced education and significant training are needed to function at a high level. Not to mention applying an informed and educated point of view to real-life circumstances and communicating that point of view to layperson clients. As a legal professional, you have the responsibility to understand how a GenAI platform is producing its material, provide it with accurate and specific prompts, and then assess its output with an informed, critical eye. Your duty and loyalty to your clients calls for nothing less.

One thing GenAI can do is trim away tedious, time-consuming tasks and leave you available to devote energy to higher-value work. Even so, it would be wrong to think anyone, legal professional or otherwise, could delegate their job to GenAI with no input, supervision, or review.

Fallacy No. 3: GenAI is prone to hallucinations

A major concern about GenAI is that it hallucinates, or comes up with information and material with no basis in reality. Put simply, most GenAI large-language models (LLMs) don’t want to say, “I don’t know.” Rather than do that, it offers up what it thinks the user wants — even in situations where it really shouldn’t. This can lead to misinformation, flawed analyses, or inaccurate conclusions, which is particularly troubling in high-stakes fields like law.

Fact No. 3: While general-purpose GenAI can hallucinate, professional-grade solutions use retrieval-augmented generation to deliver more accurate answers

It is true that some of the most popular, consumer-facing GenAI platforms hallucinate, so the concerns mentioned above have some degree of validity. The same cannot be said of professional-grade solutions.

Those solutions using retrieval-augmented generation (RAG), for example, have a built-in safeguard against hallucinations. RAG is an AI framework combining large-language models with information retrieval systems, forcing the tool to deliver its answers with direct references to a predefined database of authoritative information. For legal tools, this database may be the collected body of statutes or rulings in a particular jurisdiction. The best RAG models also cite their references with direct links, allowing you to check the model's work just as you would with a junior attorney.

General-purpose GenAI may not be the best tool for you. There are very few wide-use instruments that are specific and thorough enough for the legal industry, which is known for its exact standards and emphasis on accuracy and precision. A GenAI platform developed specifically for legal professionals should not have the same problems with hallucinations as an all-purpose GenAI platform.

Fallacy No. 4: GenAI won’t affect my industry

Once the phase of being wonderstruck by GenAI ends, some may believe it won’t impact their industry. Sure, GenAI can create stylish graphics, but if you are not a graphic designer then it seems like there isn't much reason to think it will be a disrupting force. Legal professionals might wrongly think that their industry is so specific and specialized that GenAI won’t have much applicability.

Fact No. 4: GenAI will change every industry

The legal realm has earned every inch of its reputation for being tradition-bound and slow to change. However, the untold capabilities of GenAI are too powerful and appealing for any industry, legal or otherwise, to be immune to its transformative potential. As it reshapes industries, GenAI offers immense opportunities and poses significant challenges. GenAI has the potential to transform workflows, reduce inefficiencies, and empower professionals to focus on higher-value tasks requiring expertise and judgment. However, these advantages come with critical responsibilities, particularly in a field as precision-driven, ethically complex, and vital to society as law.

To truly benefit from GenAI, legal professionals must separate fact from fallacy, understanding the technology’s capabilities while acknowledging its limitations. The fear that GenAI will replace professionals is over-hyped. Instead, those who integrate it strategically will amplify their strengths and stay ahead of the curve. However, trusting GenAI blindly or relying on general-purpose platforms unsuitable for legal tasks can lead to serious consequences, including inaccuracies and ethical breaches. As GenAI adoption accelerates, staying informed and remaining flexible and adaptable is essential. By embracing this transformative technology with diligence and care, legal professionals can navigate GenAI’s challenges and position themselves for success in this rapidly evolving landscape.

Now that we have explored some of the most common fallacies and facts about GenAI, you might want to educate yourself further. Thomson Reuters has a wealth of information on GenAI and the benefits it offers the legal industry.

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