Tag Archives: legal technology

Generative AI for Business Transactions

Posted on by
Reply

I am teaching an online course with Robert MacKenzie on July 9th about Generative AI for Business Transactions: Practical Applications for Professionals through eCornell. The Workshop Overview reads,

Generative AI is transforming how business transactions are conducted, from drafting and reviewing contracts, to summarizing due diligence materials, to benchmarking contract terms across industries. Many professionals, however, lack a practical framework for integrating these tools responsibly into their workflows.

This Workshop offers a hands-on introduction to applying AI in real-world transactional work. Participants will draft and refine communications, review and benchmark contract terms, and build compliance checklists and workflow playbooks, all while comparing outputs across AI tools to understand strengths, limitations, and potential errors.

Throughout the session, we focus on ethical, legal, and practical considerations, helping participants use AI as a complement to professional judgment rather than a substitute. By the end, participants will leave with reusable workflows, practical experience, and a clear approach to integrating AI responsibly into business transaction processes.

The Key Workshop Takeaways include,

  • Apply AI to core transactional workflows, including contract drafting, precedent comparison, and due diligence summaries
  • Evaluate outputs across multiple AI tools to understand their strengths, limitations, and differences
  • Manage key risks of AI use, such as hallucinations, confidentiality exposure, and overreliance, while integrating AI responsibly
  • Build workflow templates and checklists to structure AI-assisted tasks for consistent, reliable outcomes

 

Law Schools Should Teach How to Integrate AI Tools Into Practice

Posted on by
Reply

 

The Cornell Law Forum republished an article that I wrote with Robert MacKenzie, Law Schools Should Teach How to Integrate AI Tools Into Practice. It opens,

Now that artificial intelligence tools for lawyers are widely available, we decided to integrate them for a semester in our Entrepreneurship Clinic. We have some important takeaways for legal education in general and the transactional practice of law in particular.

First, employers and educators need to account for law students who already are using AI tools in their legal work and guide new lawyers about how to use such tools appropriately.

Second, different AI products lead to wildly different results. Just demonstrating this to law students is very valuable, as it dispels the notion that AI responses can replace their independent judgment.

Third, AI’s greatest value may be in refining legal judgment for lawyers in ways that can help new and experienced lawyers alike.

Center for Law and AI

Posted on by
Reply

Excited to be newly affiliated with Cornell Law School’s Center for Law and AI. The Center “brings together researchers working at the intersection of law and artificial intelligence. The Center explores how AI is reshaping the legal profession, how legal education should evolve in response, how law and policy can effectively govern AI, and how AI tools can advance scholarship on legal and societal questions.”

The Center has four focus areas:

AI and Legal Education. Artificial intelligence is transforming legal practice, from document review to predictive analytics. At the Center for Law and AI, we examine how legal education must evolve to prepare students for this changing landscape. Our work explores curricular innovation, ethical training, and the integration of computational thinking and AI literacy into the legal classroom.

AI and Legal Practice. Artificial intelligence is reshaping how legal services are delivered—from contract analysis and legal research to client counseling and dispute resolution. At the Center for Law and AI, we study how these technologies are changing the roles of lawyers, the structure of legal work, and access to justice. We also examine the ethical, professional, and institutional challenges that accompany the integration of AI into legal practice.

AI and Scholarship. Artificial intelligence opens new frontiers for legal research and analysis—and raises new questions. At the Center for Law and AI, we explore how AI can assist in discovering patterns in legal texts, generating and testing legal theories, and expanding the empirical study of law. We also study how AI interacts with legal institutions and society to generate new legal and societal challenges and opportunities.

Regulating AI. The rise of artificial intelligence poses urgent questions for law and policy. At the Center for Law and AI, we examine how legal frameworks—domestic and international—can be designed to govern AI systems responsibly. Our work explores regulatory design, institutional capacity, democratic accountability, and the evolving role of law in shaping the development and deployment of AI technologies.

A list of other affiliated faculty members, led by Center Director Jed Stiglitz, can be found here.

AI and Legal Education

Posted on by
Reply

Eflon CC BY 2.0

I was interviewed in the Forum (Cornell Law School’s Alumni Magazine) about AI and Legal Education. It reads, in part:

When she first began her legal studies at Cornell, [Jessica Rosberger ’26] says many students didn’t want to disclose they were using AI (“it felt like academic dishonesty”) but now it is “explicitly discussed” and used as a tool in studies and research. “I feel confident now going into practice to understand how the technology is evolving. I don’t know where it’s going, but I want to keep up with it,” says Rosberger, who joins the Manhattan District Attorney’s office after graduation. “In my view, Cornell is maintaining its integrity as a top law school by integrating AI into coursework and clinics. We have a professional responsibility to keep up with the technology and the platforms available to us.”

This sense of responsibility is especially evident at Cornell Tech, which offers courses and programs—including a Master of Laws (LL.M.) in Law, Technology, and Entrepreneurship degree—bringing together experts in engineering, computer science, design, business, and law “to build the foundations for new digital technologies—especially AI.”

“Our faculty are thought leaders in artificial intelligence and machine learning,” says David Reiss, clinical professor of law and research director of the Blassberg-Rice Center for Entrepreneurship Law. “The Law School has always been committed to ensuring that our graduates are practice ready. The integration of AI into the curriculum provides them with better tools. It will make them better lawyers and give them a leg up in practice.”

Reiss co-authored an article in Bloomberg Law explaining why law schools should teach how to integrate AI into practice. “Different AI products lead to wildly different results. Just demonstrating this to law students is very valuable, as it dispels the notion that AI responses can replace their independent judgment,” writes Reiss. Simulations were designed in which students were asked to complete the same transactional tasks, like drafting a contract or creating a client email, using different AI tools. The results were different because each platform drew from different sources or used different algorithms to interpret language—some provided a helpful first draft, while others did not, or even hallucinated.

“Our goal is student learning. It was for this reason that we like to deploy the AI tools at the end of our exercises: You do the work and then interrogate it with the AI tools of your choice,” explains Reiss. Just recognizing the capacity for different platforms to produce different results is critical. “AI is not a replacement for lawyers. We want our students to understand how it can be an enhancement for lawyers. It can increase efficiency and help meet tighter deadlines. The lawyers who adapt to AI will succeed and those who put their heads in the sand will fall behind.”

    *     *     *

Some law students are already trying to improve AI for practical usage. When Biying Cheng ’25 was at Cornell Tech’s Entrepreneurship Clinic, she assisted a client who designed an AI chatbot to help tenants deal with landlord issues and housing court. “We devised questions to test what level of detail the chatbot could and should provide, considering legal liability and jurisdictional issues,” says Cheng, who was already comfortable with AI. “I’m not a native speaker, and ChatGPT helped me draft emails, outline memos, and find resources. I called it Professor G and asked it to explains words I was unfamiliar with.”

Cheng’s pursuit of a J.D. came after receiving a master’s in international finance from Columbia University and a B.A. from The Chinese University of Hong Kong. Her work with the AI chatbot was a full-circle moment for someone who had witnessed Chinese students in Hong Kong participating in protests because of a serious housing problem. She saw how the law and AI could help New York City tenants facing housing issues. Cheng also co-authored an article with Professor Reiss on the real world impact of crypto and blockchain on tenants and real estate investors.

“The legal industry tends to be pretty conservative,” says Cheng, who now clerks for the U.S. District Court, Eastern District [of New York]. “But lawyers should want to become fluent in AI as a way to understand how it can impact lives in better ways.”

“We’re going to look to our younger colleagues to move us forward,” says Reiss. He believes that AI can help “refine legal judgment” with the right kind of prompting and critical review. AI can help lawyers “stress test” their own reasoning , identify blind spots, and learn about novel issues.

Incorporating AI Tools Into Your Legal Practice

Posted on by

Image Generated by ChatGPT

I published Advice for Incorporating AI Tools Into Your Legal Practice along with Celia Bigoness and Robert MacKenzie in the National Law Review. It reads,

We have been speaking with many lawyers and law students about using generative artificial intelligence (AI) tools in their legal practice. We are struck by the fact that many of them have not been experimenting much, if at all, with the tools that are available to them – although many acknowledge that their clients are increasingly integrating generative AI into their businesses. We have been integrating a lot of these tools into our own professional lives, and here are some tips to help lawyers and law students get comfortable with AI tools that can help them, in big ways and small, with their job.

Put it on Your Home Screen

Put your preferred AI app (ChatGPT, Claude, etc.) onto your phone’s home screen and be sure to allow it to access your phone’s microphone. You will be surprised by how often you get the urge to ask the app slightly complex questions that a basic web search would not answer. (Hat tip to one of our kids for this idea.)

Start with the Familiar

Trusting the output of an AI tool without having the ability to verify its accuracy is okay if you are choosing a movie to stream tonight. It is not okay if you are using it to provide legal advice to a client. To get comfortable with AI tools, start using it for tasks that you have experience executing and reviewing. One simple way to start: explain a familiar task to the AI tool and ask it for guidance on how you can use it to complete the task.

As you use AI tools in newer areas, you want to review the cited sources in the AI output to confirm that you agree with the AI model’s interpretation of them. Sometimes they are plain wrong, sometimes the AI model misinterprets the cited documents, and sometimes those documents are out-of-date.

When the stakes are greater than your personal entertainment, you need to do a lot of due diligence before you adopt an AI tool’s findings.

Use Multiple Tools

Different AI models are built on different training documents and have different algorithms that they apply to those documents. There is nothing more edifying than running the same queries through a few general AI models and a few specialized ones (like those geared to lawyers, in particular). You will see a range of answers, from non-answers to highly specialized and accurate ones. You will start to become a more sophisticated consumer of the different models, understanding each of their strengths and limitations.

Tell It Your Needs

Most AI tools will tailor their responses to your preferences. In some cases, we created a prompt to instruct the AI tool that responses should be of the type that a lawyer would like to receive—providing sources, explaining its analytical steps, and what it did and did not consider. The AI tool responded that it would be precise, answer “above a lay level,” and “be candid about uncertainty.” This has improved its answers and had the side effect of reducing sycophantic language (“That is a very good question!”).

Use it for Your Pain Points

We all have some routine tasks that we find irritating. They are usually the ones we procrastinate on. For some, it is preparing slide decks. For others, it is drafting certain kinds of emails (unpaid bills, anyone?). Just getting a first draft from the AI tool often helps you to finish the work up. But for some tasks, like preparing presentation slide decks, you can save hours and hours of your time.

We have experimented with both general AI tools and those that specialize in slide deck preparation. They have pros and cons, but are generally very helpful. In all these cases, the AI tool’s time savings are in large part due to the fact that the AI tool is optimizing a task that you are capable of doing yourself. You are able to quickly verify and edit the output.

However, if you were asking the tool to analyze a topic with which you are unfamiliar, or perform a task that you’ve never done before—if you’re learning from scratch—you will still need to go through the painstaking process of checking sources and confirming output.

Play in Vaults

One game-changing use of AI tools is to upload documents to a secure location in the cloud (sometimes referred to as a “vault”) and hone the tool’s focus on only those documents. A transactional lawyer can upload hundreds of documents and quickly identify commonly appearing terms for comparison or inconsistencies among them. A litigator can upload thousands of pages of litigation documents and create a draft chronology of events. Again, the output cannot be taken at face value due to the functional limitations of these tools, but it can provide an extraordinary first draft that can then be verified and edited to the form you prefer. This can be a game-changing use of AI for lawyers, as long as you have verified the vault’s security in advance.

Use it as a Second Set of Eyes

This is a great and scalable tip for those who are skeptical of AI tools. After you have completed a written task, ask an AI tool to critique for clarity, coherence, and accuracy. Even an experienced attorney will get at least a couple of suggestions that will ring true. And of course, you can reject all of the suggestions that you disagree with. This is a great way to see if an AI tool can provide you with real value with very little investment of your time.

Along the same lines, for more advanced experimentation, you can use the AI tool to issue spot and offer counterarguments to your work to complement your own analysis. Again, this is very low stakes because you can reject anything you find wrong-headed or irrelevant. Of course, you need to be careful about sharing privileged information (see vault security above).

Preserve Confidentiality

We have spent more time than many of you would like looking at the Terms of Use of the AI tools we have used. Except for certain tools that are developed for legal work in particular, we believe that the attorney-client privilege can be compromised when using many AI tools because of how the tools use your input information.

We have had students and clients who wanted to use AI transcription tools to compile meeting notes. We have advised them that confidential information can be compromised by such tools and that we do not use them in our practice, at least at this time.

If you begin to use a tool with client-identifying information, be sure to confirm that you are complying with your professional responsibilities to preserve client confidences.

Don’t get Lazy!

We all read the headlines about lawyers who use AI to draft legal documents and do not check to confirm that the work product is correct. Those lawyers rightfully face professional discipline and reputational consequences. We can all say that we would never do that, but a new term has arisen to describe an unthinking reliance on AI: “cognitive offloading.” This offloading occurs when we reduce our own deep research and thinking because of an unhealthy reliance on AI tools.

Every time we complete a substantive task with AI, we need to ask if we have thought through the task as fully as we would have if we did it without the tool. If the answer is no, we need to dig into it again. Cognitive offloading is a particular concern for law students and younger generations of lawyers, who have grown up with technology and tend to be more comfortable using AI tools – and therefore more susceptible to this unthinking reliance.

Conclusion

From our discussions with lawyers in private practice, it is clear that AI tools are being used in the ways we have mentioned above. No doubt, more specialized tools are in development. It’s clear that AI will transform the practice of law in the coming years. Those who are new to AI can use these pointers to begin exploring how AI works. We think they can amplify their effectiveness to the benefit of their clients and themselves, so long as the risks that AI tools pose are thoughtfully addressed.