The discussion about Artificial Intelligence (AI) and the impacts it will have on daily life is, currently, one of the most relevant topics regarding the future of society. The rise of ChatGPT, for example, signals a remarkable era of change, characterized by increased accessibility and democratization of information.
Several sectors will suffer the impacts of the new technology, especially in Brazil, which, thanks to its vast market and developing innovation ecosystem, encompasses the necessary conditions to position itself as an AI powerhouse. The effects of implementing this mechanism in the legal sector highlight the transformations brought about by technology and its future implications for the legal environment.
The following analysis will address the use of AI in the legal ecosystem, exploring the development and practical applications of these technologies in Brazil.
AI as a Tool to Expand Analytical and Decision-Making Capacity.
Since the creation of artificial intelligence, there has been a growing concern in the public debate about the potential replacement of humans by machines. This theme extends across various sectors, including the field of Law, where AI promises to radically transform traditional practices and structures. As technology evolves, it offers the ability to automate complex tasks and perform data analysis on a scale that challenges human capacity, raising both significant opportunities and challenges.
A study conducted by Goldman Sachs in 2023 estimates that generative AI could replace up to a quarter of current jobs, on a global scale impacting about 300 million people. The most affected sectors include administrative and office work, professionals in the field of Law, architecture, and engineering.
As described earlier, the report in question highlights, through the chart below, the trend observed in the analyzed data.
Percentage of industry employment exposed to AI automation: USA
The “Office and Administrative Support” and “Legal” sectors will be the most affected, showing significantly higher rates than other sectors.
Based on the Goldman Sachs study, economists presented a specific projection for Brazil: it is estimated that 25% of the Brazilian workforce could be replaced by AI automations, a proportion that exceeds the global average. This trend is shared by countries such as China, India, and Mexico.
As artificial intelligence advances, the field of Law faces a transformation similar to the “Taxi vs. Uber” dispute. Lawyers who resist new technologies and trends run the risk of becoming obsolete, so adapting is crucial to avoid falling behind in today’s dynamic legal environment.
The exponential emergence of legal tech companies and the redefinition of the national landscape
Brazil stands out as one of the main global markets for companies that develop technological services aimed at the legal market, driven by the high demand from lawyers and the volume of lawsuits in a complex legal system. Since 1995, the number of Law courses has increased from 235 to almost 1,900, an increase of more than 700%. With more than 1.3 million lawyers, Brazil has the highest ratio of lawyers per capita in the world, with one lawyer for every 164 inhabitants. The existence of more than 80 million ongoing lawsuits creates a favorable environment for training artificial intelligence, where the abundance of data contributes to the accuracy of the algorithms. This unique scenario positions Brazil advantageously in the global landscape of legal technology.
The accelerated technological evolution and the large emergence of companies in the sector led the Brazilian Association of Lawtechs and Legaltechs (AB2L), a non-profit association founded in 2017, to create a separation in the classification of these companies between LawTechs and LegalTechs. LawTechs are companies that offer solutions to facilitate actions related to the universe of laws, creating products and services that address specific problems. An example is companies that offer data analysis and compilation (analytics). LegalTechs, in turn, focus on legal practitioners, seeking to improve the productivity of lawyers, law firms, and other agents involved in the legal system. As an example, we can cite companies that streamline the management and automation of contracts and ERP systems (Enterprise Resource Planning) for law firms.
Companies that provide services to the legal sector are designed to ensure the privacy of the data used, offering superior security and specialization compared to Generative Artificial Intelligences, such as ChatGPT and Gemini. These technologies are essential to meet specific market needs, such as the creation of petitions or analysis of specialized documents, for example.
Many people believed that the emergence of these companies was a ‘passing fad’ and that the lawyer was irreplaceable in the task. The pandemic showed us exactly the opposite. Without Legaltechs and Lawtechs, it would be difficult to maintain the efficient functioning of Brazilian justice, as well as law firms, legal departments, and courts. These technologies have been fundamental to sustaining and improving legal operations in the country. The companies came to coexist with lawyers and provided an increase in productivity and ease for all agents in the network.
According to AB2L, the sector has shown robust growth. Initially, the organization had only 20 members among Lawtechs and Legaltechs, but today it brings together more than 600 companies, firms, legal departments, and independent professionals.
Use of Artificial Intelligence in the Global Legal Sector
In the legal sector, AIs can be used for quick analyses, creating summaries and assisting in the preparation of documents, petitions, and legal arguments. This process not only saves time but also introduces a technical precision that requires less human intervention afterward. AI tools are especially valued for their ability to offer data-based suggestions and specific guidance.
AI has been widely used by lawyers through jurimetrics, which is statistics applied to law. This tool helps professionals better understand trends and patterns in lawsuits through data analysis, such as, for example, the history of a judge’s decisions on a given subject. Statistics applied to the prediction of sentences enable the preparation of more assertive and targeted petitions, increasing the chances of success. These platforms allow lawyers and jurists to obtain valuable insights about the waiting time of a lawsuit and other procedural aspects, improving the prediction of results and optimizing case management.
The implementation of AI in Law also involves significant challenges, especially regarding the reliability and security of data. The integration of new technologies requires a robust infrastructure and careful design to ensure that data is handled securely and that the AI’s suggestions are accurate and useful. There is a great discussion about the application of AI in Law, which often includes a debate about the balance between technological innovation and the need to maintain the integrity and confidentiality of legal information.
AI is redefining the role of the legal professional, as well as the structure of the public legal sector. With the automation of routine tasks and the introduction of systems that can analyze and manage data more efficiently, both law firms and courts are undergoing a transformation in their internal processes.
The execution of legal activities is faster and more uniform, reducing human bias and improving the consistency of legal operations. This evolution not only benefits large firms with a high volume of work but also extends its advantages to small firms, increasing the efficiency of the sector as a whole.
The president of the Federal Supreme Court, Justice Luís Roberto Barroso, told journalists in May 2024 that, currently, the STF uses artificial intelligence to group cases by theme to check whether the appeals address issues that have already been consolidated as a matter of general repercussion, and therefore should not go up to the Court.
In an interview, the justice mentioned his expectation of, in the future, deepening the use of AI in the identification of and respect for binding precedents at the STF. In addition, he intends to use systems that summarize cases with quality, but always under the supervision of a magistrate. Below is a passage from his conversation with journalists about his vision of the use of artificial intelligence:
“In the not-too-distant future, at least the first draft of a judicial decision will be made by artificial intelligence. Especially because artificial intelligence has more capacity to process information. That is, it does so in greater volume and at greater speed. And we have to benefit from that. Therefore, we should not fear progress. We just need to make sure we can channel it onto an ethical track,” Barroso said.
REGULATION AND THE ETHICAL CHALLENGE IN THE USE OF ARTIFICIAL INTELLIGENCE IN LAW
Currently, there are two major approaches to AI regulation: the United States and England adopt a more pragmatic stance, focusing on regulations related to national security that can mitigate harm to the country. On the other hand, the European Union is developing laws to regulate Artificial Intelligence based on different levels of risk, which implies more or less regulation according to the technology’s potential impact. The great challenge of the broad regulation proposed by the EU, which is being discussed similarly in bills in Brazil, is to be able to encompass the use of AI, since the technology is not necessarily embedded in a specific product or service.
One suggestion is the creation of specific regulations based on concrete problems, thus avoiding the excessive scope that can give rise to varied interpretations.
We can take Rio de Janeiro as an example, which already uses artificial intelligence with facial recognition in public security, and which could serve as a basis for the creation of a specific national regulation for identifying people from images using AI.
In the global scenario, the importance falls on the debates surrounding AI regulatory frameworks. The biggest challenge of these frameworks is to allow the evolution of the technology without restricting it with an excess of regulations, such as those for data protection (LGPD).
The great ethical challenge in creating Artificial Intelligences, which emulate human behavior and reasoning capacity, lies in ensuring that they receive a significant amount of data, analyze that data, extract inputs, and incorporate moral and ethical values without discrimination or biases. The algorithms need to be frequently reviewed to avoid flaws and failures that could result in erroneous judgments. It will be necessary to create a form of coexistence between the emerging technology and the rights already enshrined in our system.
RECENT M&A MOVES IN THE SECTOR
The integration of AI in Lawtechs and Legaltechs, which represent the transaction domain, is a testament to the transformative potential of technology in the sector. Companies such as Vela Software and Softplan, for example, have expanded their operations through strategic acquisitions that not only broaden their market reach but also incorporate advanced AI capabilities that can offer more efficient solutions to legal challenges. These movements indicate a clear trend that AI is becoming an integral and crucial part of the technological infrastructure in the legal environment.
In addition, transactions such as the recent acquisition of Lexion by Docusign in the United States show a global trend of valuing AI in contract management and the analysis of large volumes of legal data. Although this transaction is international, it has implications for the Brazilian market, indicating how international practices can influence and accelerate the adoption of AI in Brazil.
By integrating AI technology, companies not only seek efficiency but also shape a new era of legal practice characterized by precision and the ability to respond dynamically to complex legal needs.
See some of the most relevant transactions:
The transactions highlighted above not only reflect the ongoing consolidation in the market but also reveal the strategies of leading companies to expand their capabilities and reach new markets.
- 2024: Dura Software acquired Promad/Publicações Online, as detailed on Promad’s website, marking a significant advance in offering digital solutions for lawyers.
- 2022: In a notable transaction, LawFinder bought Future Law, focusing on the expansion of legal services in the metaverse, as reported by BizNews.
- 2022: Vela Software acquired LD Software, expanding its portfolio of technological solutions for the legal sector, detailed in IT Forum.
- 2022: Softplan strengthened its market position by acquiring Projuris, aiming to expand its portfolio with the inclusion of Projuris, which specializes in legal solutions.
M&A movements in the legal sector reflect a broader commitment to technological innovation and set the stage for a future in which AI will be a fundamental tool in law.
Conclusion
Toward a future in which artificial intelligence becomes increasingly fundamental in the legal sphere, not only as a facilitating instrument but also as a transformative element, with the ability to analyze data at scale and optimize processes, AI has the potential to redefine legal norms and practice. However, these changes bring with them significant ethical and regulatory challenges that require careful attention to ensure that the benefits of the technology are maximized without compromising equity and justice.
Walter Longo, a renowned strategist and visionary in the field of communication and technology and Managing Partner at Unimark Comunicação, in his approach to AI, suggests that the true wisdom in the use of technology does not lie in replacing the human, but in complementing their capabilities and compensating for their limitations. This is especially relevant in law, where precision and impartiality are fundamental. Thus, when incorporating AI into Law, we must strive for it to function as an amplifier of human qualities, and not as a substitute.
Therefore, the path forward with AI in Law is marked by the need for ethical governance and regulatory oversight that aligns technological innovation with the fundamental principles of justice. Only through careful integration that considers both technological capabilities and moral implications will we be able to effectively deal with the challenges of the new legal era.
💬 Author: Gustavo Rinaldi