Artificial Intelligence And Law

Introduction:

Artificial Intelligence (AI) refers to the simulation of human intelligence in a machine in order to make it work and think like humans. The ideal characteristic of AI is that it is used to make the right decision to achieve a specified goal. The application of Artificial Intelligence is endless. It can be used in almostall fields. AI is being tested and is being used in the healthcare industry for dosing drugs and different treatments in patients and is also used for doing surgeries. Artificial intelligence has transformed computers into playing chess and cars into self-driving ones. For self-driving cars, the computer system must account for all external data and compute it to act in a way that prevents a collision[1]. In law, it is being used in online dispute resolution platforms that use optimizing algorithms and blind bidding. Legal Ontology defines Artificial Intelligence as“an explicit, formal, and general specification of a conceptualization of properties of and relations between objects in a given domain”[2]. This article is about how AI can be used and its importance in the Indian scenario.

Importance of Artificial Intelligence in Legal Field:

In recent times, we have seen the implementation of Artificial Intelligence in hotels or cellphones. Unfortunately,the Indian legal system has failed to implement it effectively. Artificial Intelligence can play a big role in assisting lawyers in the dearth of human resources in India. At the same time, full implementation is also not possible because it can cause huge disruptions in the field of legal research. To complete lawful research, a noteworthy number of man-hours are required and this all together lessens the benefit-making capacity of a law office, be that as it may, with man-made brainpower the whole legitimate club can be adjusted. A falsely insightful stage for research can complete research in a moment or two and be it a law office with 400 attorneys or a single rehearsing legal counselor; man-made consciousness can adjust the consumption required for a legitimate look into making the nature of research uniform.It can provide lawyers with highly efficient and advanced tools helping them to become better inadvising clients or litigating[3]. Revenue is often one of the most important metrics in the business. AI can generate higher revenue by introducing innovation in the ways to serve a client. To serve the clients, law firms look for Performance-Based Pricing Strategy. As the name suggests, this technique would be more client-friendly. Artificial Intelligence will reduce the cost and will help gain more profit.  In the future, law firmsare expected to focus heavily on their brand presence given that negligent advice can easily damage their reputation.To develop that, law firmsmay rely on AI-based legal solutions and platform and tech-savvy lawyers[4].On the other end, law firms also need to organize more conferences and make their appearance in cross-border seminars and workshops[5]. In a study conducted by an AI contract review platform-LawGeex, it was concluded that the AI tool used by them achieved an average 94% accuracy rate at surfacing risks in non-disclosure agreements as compared to 85% for top corporate lawyers employed to the same task.[6]. Using AI for formulating and managing drafts of law contracts has been preferred in similar research at Harvard Law School.The law school has devised a web index called Evisort that bridles distributed storage and simulated intelligence. Given the way that attorneys handle contracts and other value-based work presently, they plan to revolutionize the work into progressively inventive and fascinating undertakings.When they say, “In six seconds they can review a 30-page contract and pull out information for you”, lawyers say, “Why did I spend 10 years of my life doing that?”

The way to reduce costs without sacrificing performance and accuracy is through the use of deep learning and machine learning models in natural language processing for law correspondence[7].

Areas Where Artificial Intelligence is Helping Legal Industry:

Due diligence:

To review a legal contract, conducting legal research, or electronics discovery functions, AI legal software is proving to be helpful and time-saving.

Prediction Technology:

Artificial Intelligence legal software also predicts probable outcomes of a case that can be given by a Court of Law.

Legal Analytics:

Artificial Intelligence can find case laws and precedents from the past relevant case laws to be used in the present case.

Intellectual Property:

Tools in Artificial Intelligence helps in providing insights into challenges in intellectual property.

Electronic billing:

Legal software aids lawyers and firms in preparing the invoices as per the work done by them. It makes for accurate billing for the work done by a lawyer, helping both lawyers and clients.

As per the Income Tax Act, for the purpose of taxing an entity or an individual under the Act, it needs to qualify as a ‘person’[8]. As of now, the recognition of AI entities or robots as ‘persons’ is still far away from reality when we talk about laws. Nonetheless, the autonomous nature of AI may play an important role in its recognition as a person based on the possibility that all activities are performed on its intelligence. 

Artificial Intelligence’s Contribution To Human Productivity- A Boon or Bane:

A wrong assumption among lawyers and law firms is that it is a threat to human existence and it will replace them. Studies conducted by many researchers say that Artificial Intelligence is not in anyway replacing humans but it will make them more productive than their predecessors. Legal Challenges:

Can AI execute contracts and bound by itself?

The concern of AI is the ability to execute contracts and be bound by the contracts. Under Indian Law,only a legal person can enter into a contract. The general rule has been that AI cannot qualify as a legal person. Hence contract entered cannot be valid.

Can AI have locus standi?

The legal concept created for corporates serves as a precedent for granting legal personhood to AI. However, the distinction here is that corporates are fictitiously independent, yet accountable via their stakeholders, while an AI may be actually independent. At present, no law in force recognizes Artificial Intelligence as a legal person[9].

What shall be the nature of liability of Artificial Intelligence?

Thoughts about autonomous vehicles also raise complex legal issues, such as liability insurance.  A main legal difficulty that arises upon realization of AI is the question of apportionment of liability. If we identify the responsible party for damage due to AI application, another issue is whether a party will be liable under the principle of strict liability or absolute liability[10]

How Ai Will Prove to be a Game-Changer?

Cyril AmarchandMangaldas has been the first law firm to announce AI technology for certain legal process activities. Having signed an agreement with Kira Systems-a Canada-based technology firm, Cyril intends on using Kira machine systems for greater automation of its due diligence and transactional practices[11].

Globally, the advent of AI systems in the legal sector came as a furtherance of the Legal Process Outsourcing (LPO) model. With the demand for lower costs in process-driven activities and a move away from higher rates and billable hours, the focus has shifted towards investing in the previously ignored areas of innovation and technology.

AI frameworks like IBM Watson and Kira are additionally being utilized in complex legal issues and for cases including US Government patent cases with incredible achievement. Lately, innovation has likewise been executed in judgment expectations and hazard appraisals.

There is additionally the enormous potential for the relevance of AI in cross-outskirt contract drafting, dealings, and dynamic activities attempted by law offices and their customers. Initiative By Indian Government:

A policy prepared by NITI Aayogstates that Artificial Intelligence will be helpful for the Government in addressing cyber issues like privacy and data issues[12]. The Government aims to use Artificial Intelligence to find GST frauds, as proposed in the budget for this year. Finance Minister Ms. Nirmala Sitaraman said-“There is a growing need for the Indian statistical system to meet the challenges of real-time monitoring. Data must have strong credibility. The proposed new National Policy on Official Statistics would use the latest technology including AI. It would lay down a road-map towards modernised data collection, integrated information portal, and timely dissemination of information.”[13]

Conclusion:

Problems persisting in current legislative infrastructure, and the lack of effective regulatory mechanisms is a hurdle that we face. In case of an administrative, criminal, or any other incident, the executive bodies will face greater challenges to determine the corpus delicti. Therefore, forming effective instruments to influence behavior and to determine the third party’s participation in the offence committed by an AI could be a tough nut to crack. The second worldview of relations emerging between mechanical AI and man suggests the arrangement of some encouraging authoritative base. Simultaneously, up until this point, the issue of the legitimate character of a completely independent automated AI, its lawful limit, and duty has not been settled in the present renditions of national enactments.

In the present variety of the law, in the event of any unlawful act, the liability lies exclusively with the proprietor, engineer, or administrator of the AI. This methodology essentially restrains the possibility of automated AI advancement. Therefore, its utilization is conceivable just in the setting of human reciprocal capacities. Legislation must be enacted quickly and in a manner that overcome disabilities.

 

By-

   

  Paras Dargarh

(Symbiosis Law School, Pune)

[1]Artificial Intelligence, Jake Frankenfield, Investopedia,  March 13, 2020, available athttps://www.investopedia.com/terms/a/artificial-intelligence-ai.asp

[2] Artificial Intelligence and Legal Analytics, Kevin D. Ashley (2017).

[3]Importance of Artificial Intelligence in Indian Legal System, Mirza Asalam Beg, Legal Service India, available athttp://www.legalserviceindia.com/legal/article-631-impact-of-artificial-intelligence-on-indian-legal-system.html

[4]Supra note 3

[5] Supra note 3.

[6]The Benefits of Artificial Intelligence in Law, Soojung Chang, Ross Intelligence,April 20, 2018, available athttps://blog.rossintelligence.com/post/benefits-ai-law

[7]AI vs Lawyers: The Future of Artificial Intelligence and Law, Merve A. Kızrak, Interesting Engineering, December 29, 2018, available athttps://interestingengineering.com/ai-vs-lawyers-the-future-of-artificial-intelligence-and-law

[8] § 2(91), Income Tax Act.

[9]Artificial Intelligence: Legal Challenge in India, Pallavi Gupta, ResearchGate, May 2019, available athttps://www.researchgate.net/publication/335967041_Artificial_Intelligence_Legal_Challenge_in_India

[10] Supra note 9.

[11]How AI may become a game changer for Indian Legal Industry, SayanGhosal, Feb 17, 2019, available at https://www.business-standard.com/article/current-affairs/how-ai-may-become-a-game-changer-for-the-indian-legal-industry-117021800722_1.html

[12]NITI Aayog Policy on Artificial Intelligence, available athttps://www.insightsonindia.com/wp-content/uploads/2018/06/National-Strategy-for-Artificial-Intelligence-AI.pdf

[13]Budget 2020: Government to use AI to crackdown on GST frauds, Goutam Das, Business Today, February 1, 2020, available at https://m.businesstoday.in/lite/story/budget-2020-government-to-use-ai-to-crackdown-on-gst-frauds/1/395275.html

 

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