AI and Its Impact on the Legal Profession

By
Connor van Balen
Wadlow Solicitors
19 August 2026

Introduction

As everyone is fully aware, artificial intelligence (AI) is impacting, and will continue to impact, multiple industries with its rapid development and immense capabilities. One of those industries is the legal profession. It has significantly affected many areas of law, which has presented both opportunities and concerns.

Opportunities

AI systems and programs are increasingly being integrated into law firms throughout Australia. These systems present the opportunity for lawyers to more efficiently review contracts, conduct legal research, identify litigation risks, and perform due diligence. This indicates that the most compelling benefit of AI is its ability to save time. In an industry where time is of the essence, AI is crucial to the legal profession and industry.

Some may regard AI as a negative force which will negate many aspects of a lawyer’s capabilities. While AI will create redundancy within some areas of a lawyer’s capabilities, it will allow them to reinvest their time to focus on other meaningful and strategic pursuits such as:

  • Focusing on physical and mental well-being;
  • Deepening client relationships;
  • Engaging in firm-wide strategic planning;
  • Delivering insightful, high-value guidance.1

It was stated by the Attorney survey respondent of the 2024 Future of Professionals Report that:

The role of a good lawyer is a ‘trusted advisor’, not as a producer of documents…breadth of experience is where a lawyer’s true value lies and that will remain valuable.

Concerns

While greater reliance on AI does create opportunities for both lawyers and law firms, it raises issues regarding accountability, transparency, and the allocation of legal responsibility when AI-generated decisions produce inaccurate or harmful outcomes. These issues can arise from both the characteristics of the technology as well as its potential uses and applications.

One major concern relating to AI systems is the capacity for it to produce results or decisions that are incorrect. Reliance on these results by lawyers can be critical in the outcome of a case, especially when it directly relates to a client. An example of this includes relying on AI to advise on the right cause of action for a matter, which results in the client incurring substantial and unnecessary legal fees. In the interim, while AI is still developing, lawyers must be diligent in supplementing all AI results with legal research to ensure that advice conveyed to the client is accurate.

Another major concern is the security of AI systems. Given the nature of the legal system, privacy and confidentiality are of paramount importance. Lawyers and law firms routinely handle highly sensitive client information, making the protection of this data a critical obligation. Consequently, AI systems must be implemented with robust security measures to safeguard confidential information and ensure compliance with privacy and confidentiality laws, as well as professional ethical obligations.

Conclusion

AI is transforming the legal profession by creating significant opportunities to improve efficiency, reduce administrative workloads, and enable lawyers to focus on higher-value work. However, it is not a substitute for professional judgment, ethical decision-making, or the experience of a qualified lawyer. Concerns surrounding the accuracy of AI-generated outputs, accountability for errors, and the protection of confidential client information cannot be overlooked. As AI continues to develop, lawyers and law firms must adopt it responsibly by implementing appropriate safeguards, maintaining rigorous oversight, and ensuring compliance with legal and ethical obligations. Ultimately, AI should be viewed as a powerful tool that supports lawyers rather than replaces them, enabling the profession to deliver more efficient and effective legal services while preserving the trust and integrity upon which the legal system depends.

1 Sarahstrumberger(2026) What legal professionals say about the role of AI and Law in 2026,Thomson Reuters Law Blog. Available at:https://legal.thomsonreuters.com/blog/how-ai-is-transforming-the-legal-profession/#heading-1(Accessed: 05 August 2026).
2 Ibid.

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