In plain words: AI chatbots were tested on spotting legal issues in contracts, with senior lawyers' answers as the correct standard, against junior lawyers and outsourced reviewers. They matched or beat the humans' accuracy, finished in seconds instead of hours, and cost 99.97% less.
Abstract · Better Call GPT, Comparing Large Language Models Against Lawyers
This paper presents a groundbreaking comparison between Large Language Models and traditional legal contract reviewers, Junior Lawyers and Legal Process Outsourcers. We dissect whether LLMs can outperform humans in accuracy, speed, and cost efficiency during contract review. Our empirical analysis benchmarks LLMs against a ground truth set by Senior Lawyers, uncovering that advanced models match or exceed human accuracy in determining legal issues. In speed, LLMs complete reviews in mere seconds, eclipsing the hours required by their human counterparts. Cost wise, LLMs operate at a fraction of the price, offering a staggering 99.97 percent reduction in cost over traditional methods. These results are not just statistics, they signal a seismic shift in legal practice. LLMs stand poised to disrupt the legal industry, enhancing accessibility and efficiency of legal services. Our research asserts that the era of LLM dominance in legal contract review is upon us, challenging the status quo and calling for a reimagined future of legal workflows.
Lauren Martin, Nick Whitehouse, Stephanie Yiu, Lizzie Catterson, Rivindu Perera
arXiv:2401.16212 · cs.CY, cs.CL · submitted Jan 24, 2024
abstract · pdf · html · 16 pages
In terms of contract review, what I've found is that GPT is better at analysis of the document than generating the document, which is what this paper supports. However, I have used several startups options of AI document review and they all fall apart with any sort of prodding for specific answers. This paper looks like it just had to locate the section not necessarily have the back and forth conversation about the contract that a lawyer and client would have.
There is also no legal liability for GPT for giving the wrong answer. So It works well for someone smart who is doing their own research. Just like if you are smart you could use google before to do your own research.
My feelings on contract generation is that for the majority of cases, people are better served if there were simply better boilerplate contracts available. Laywers hoard their contracts and it was very difficult in our journey to find lawyers who would be willing to write contracts we would turn into templates because they are essentially putting themselves and their professional community out of income streams in the future. But people don't need a unique contract generated on the fly from GPT every time when a template of a well written and well reviewed contract does just fine. It cost hundreds of millions to train GPT4. If $10m was just spent building a repository of well reviewed contracts, it would be a more useful than spending the equivalent money training a GPT to generate them.
People ask pretty wide range of questions about what they want to do with their documents and GPT didn't do a great job with it, so for the near future, it looks like lawyers still have a job.