Introduction

Artificial intelligence (‘AI’), a versatile technology that dates back to the early 1950s, has experienced waves of excitement and innovation, often followed by phases of stagnation.[1]  However, in the recent times the AI boom has significantly revolutionised various aspects of our day-to day lives.  As of today, AI is no longer just a buzzword – it is rapidly transforming industries worldwide, and the legal sector is no exception.  As technology continues to evolve, AI is bound to enter all spheres of our lives sooner or later.  Rather than resisting this change, the legal sector seems to be embracing AI as a tool for efficiency and effectiveness as a way forward.  While the focus of this article primarily remains on the potential adoption and application of AI in the legal sector, it will also provide a brief overview of the current state of AI regulation.  Notably, in 2022 alone, over thirty legislations were enacted across more than a hundred countries which included the phrase “artificial intelligence”.[2]  A significant turning point for this rapid push for regulation is believed to be the launch of ChatGPT by OpenAI in late 2022, which propelled generative AI into the spotlight.

The legal profession, often seen as a bastion of tradition, is also now witnessing a technological upheaval with the introduction of AI.  From chatbots like Lucio and Harvey, to advanced legal research tools, AI is steadily infiltrating the industry and, revolutionizing how lawyers work.  Like any technological advancement, this shift comes with both promises and perils.  In the context of Indian regulations, as well as global developments, this article explores how AI is reshaping the legal landscape.

The Rise of AI in Legal Practice

A recent survey conducted by Thomson Reuters amongst 2,200 professionals and senior corporate executives from over 50 countries reveals a growing belief in the transformative power of artificial intelligence.  According to the survey, “77% of respondents believe AI will significantly influence their work within the next five years, marking a 10% increase from the previous year’s survey.”[3]

Notably, the legal profession, in particular, has become more accepting of AI in recent years.  As per the survey, 72% of legal professionals view AI as a positive force within their field.  Moreover, half of the law firm respondents identified exploring and adopting AI tools as their top priority. They also believe that AI can help improve other crucial areas, such as client satisfaction and operational efficiency.  AI tools are no longer just experimental innovations; they have become essential in handling voluminous data, drafting contracts, conducting legal research, and even predicting case outcomes.  Tools like “Harvey” (a legal assistant chatbot) and “Lucio” are gaining traction in legal firms worldwide, helping lawyers increase efficiency while minimizing errors.

In India, where the legal system is notorious for its complexity and backlog, these tools could be revolutionary. The Indian Supreme Court itself has recently turned to AI, unveiling SUPACE (Supreme Court Portal for Assistance in Court Efficiency) to help judges handle vast volumes of case data efficiently by collecting relevant facts and laws and streamlining such data for the judges.[4]

AI is proving useful in several key areas of legal practice:

• Legal Research – Platforms like Manupatra integrate AI to offer faster search results, automated case analysis, and improved accuracy in legal research thereby reducing hours of manual data scanning.

• Contract Review and Drafting – AI-based platforms are now programmed to analyse contracts, identify risk factors, and suggest edits with remarkable precision.  

• Predictive Analytics – AI algorithms are being trained to predict case outcomes based on precedent, judge tendencies, and legal arguments.  

• Chatbots and Client Management – Tools like Lucio and Harvey AI are being employed for client intake, appointment scheduling, and answering basic legal questions.  While these chatbots cannot replace complex legal advice, they effectively address common inquiries, improving client experience.

• Document Automation – AI-driven platforms are revolutionizing document generation by reducing repetitive drafting tasks.  This is particularly useful for firms handling contracts, wills, and NDAs on a large scale.

• Matter Tracking and Management: AI tools are now being developed to track team members’ assignments, monitor the progress of legal matters, and ensure proportional workload distribution.  Such systems enhance transparency, reduce inefficiencies, and improve team management in law firms.

Regulatory Landscape

While AI is an exciting frontier, it raises significant legal concerns both in India and globally.  Indian regulations, such as the Information Technology Act, 2000 and the Digital Personal Data Protection Act, 2023, attempt to regulate data privacy and digital processes but lack specific provisions for AI in legal practice. However, India’s approach appears to be evolving.  The NITI Aayog has actively advocated for responsible AI development through its ‘Responsible AI for All’ framework, which emphasizes fairness, accountability, and transparency in AI tools.

Meanwhile, globally, jurisdictions are adopting different approaches to regulate AI.  Principally, emerging perspectives differ on the preferred degree of regulation, balancing varied rights and obligations, and the role of statutory and regulatory governance. We note:

• The European Union’s AI Act proposes a risk-based framework, classifying AI applications into categories like minimal, limited, high-risk, and unacceptable risk.  Legal AI tools used in judicial decision-making or sensitive data handling are considered high-risk and face stricter compliance requirements.
• The United States is yet to introduce a unified AI law, but several states have enacted AI-specific regulations, particularly around data protection and algorithmic accountability.
• China has adopted proactive measures with its Regulations on the Administration of Deep Synthesis Internet Information Services, ensuring that AI systems comply with content authenticity standards.

India may benefit from adopting a framework that blends elements of the EU’s risk-based model and the U.S. sector-specific approach, ensuring innovation while safeguarding public interests.

Key Legal and Ethical Concerns

AI’s integration into legal practice introduces several risks and concerns that demand regulatory clarity:

• Data Privacy Risks – Legal chatbots like Lucio and Harvey inevitably process sensitive information, raising concerns about data security and confidentiality. India’s Digital Personal Data Protection Act will play a pivotal role in ensuring robust data protection measures for AI-driven legal tools.

• Bias and Reliability – AI models are only as good as their training data. If biased data informs AI decisions, outcomes may unfairly favour certain demographics or legal arguments. Ensuring transparency in AI development is crucial to mitigate this risk.

• Liability and Accountability – Determining liability in AI-driven errors presents a legal grey area. Questions about whether responsibility falls on developers, law firms, or individual users remain unresolved in most jurisdictions.

• Ethical Dilemmas – AI’s ability to predict outcomes may encourage ‘forum shopping’ or strategic manipulation of case strategies, potentially undermining judicial integrity.

• Intellectual Property Concerns: AI-generated content may raise questions about ownership rights in legal documentation.

• Overdependence on Technology: Excessive reliance on AI could diminish critical thinking and analytical skills essential to legal practice.

The Future of AI in Indian Legal Practice

The Indian legal sector’s embrace of AI is still in its early stages.  While large firms are rapidly adopting AI tools to streamline operations, smaller firms and independent practitioners may struggle to keep up. The Bar Council of India and other regulatory bodies must establish clear guidelines to ensure AI is integrated responsibly.  As chatbots like Lucio and Harvey become increasingly sophisticated, they may soon take on higher-level responsibilities such as drafting complex legal opinions or mediating disputes.  However, the legal professions’ emphasis on human judgment, empathy, and ethical reasoning ensures that AI will remain a powerful tool rather than a complete replacement for lawyers.  AI’s integration into the legal industry is inevitable and potentially transformative.  As legal professionals, our focus must be on harnessing AI’s strengths to improve accuracy, efficiency, and access to justice.  By using AI as a tool rather than a crutch, we can ensure that technology empowers the legal profession rather than undermining it.  The firms that embrace this change thoughtfully will thrive in the evolving legal landscape.  As AI continues to evolve, Indian lawyers can proactively prepare by developing expertise in data privacy, AI ethics, and technology-driven legal research – skills that will become increasingly valuable in the profession’s future.

Written by Nidhi Arora (Partner) and Aastha Singh (Associate)

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[1] “What is the history of artificial intelligence (AI)?,” Tableau, last accessed on 09 March 2025 <link>

[2] “2023 State of AI in 14 Charts,” Stanford University Human-Centered Artificial Intelligence, last accessed on 09 March 2025 <link>

[3] “How AI is transforming the legal profession (2025),” last accessed on 09 March 2025 <link>

[4] “Supreme Court embraces Artificial intelligence, CJI Bobde says won’t let AI spill over to decision-making,” India Today, last accessed on 09 March 2025 <link>