It is a transformative era for businesses as technological advancements, particularly in artificial intelligence (AI), increasingly influence every industry, changing how companies operate, manage staffing, and serve customers. In the legal and risk sectors, the ethical and regulatory considerations of AI usage are becoming critical issues.
To assist industry teams in understanding when and how to use AI, addressing regulatory compliance, and more, the Thomson Reuters Future of Professionals report surveyed over 1,200 professionals in legal, risk, tax and accounting, compliance, and global trade fields.
Regulating AI
While the potential benefits of AI in business generate excitement, the focus on regulating AI is intensifying, with calls for businesses to implement usage, privacy, and communication policies. Many professionals worry that unmanaged AI could cause significant harm.
The Future of Professionals report reveals that 67% of surveyed professionals expect AI and Gen AI to profoundly impact their fields within the next five years. For instance, law firms are optimistic about AI’s productivity benefits, such as large-scale data analysis and performing nonbillable administrative tasks more accurately, allowing legal professionals to focus on billable work and recapture revenue lost to inefficiencies. Consequently, many firms and departments are already utilizing AI.
However, the need for regulation to ensure clarity, trust, and risk mitigation is evident. According to the report, 93% of professionals recognize the necessity for regulation, with concerns about AI accuracy and trustworthiness, especially when AI outputs are used as advice without human verification.
There is a growing demand for firms and in-house departments to create and enforce usage, privacy, and communication policies. Moreover, 53% of law firms and 43% of corporate legal departments believe industry-level regulations are necessary to govern the professional ethics of AI.
Regulatory activity is gaining momentum. For example, President Joe Biden’s executive order on October 30, 2023, titled “Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence,” aims to balance AI benefits with potential risks and outlines principles and guidelines for AI development and use in the United States.
For industry professionals, this executive order presents both opportunities and challenges, necessitating advising and representing clients on AI-related legal issues, such as ethics and compliance costs. Additionally, legal professionals will need to integrate AI systems into their own work, like research and analysis.
Several regulatory efforts are underway at federal, state, and international levels, including:
- The proposed American Data Protection and Privacy Act at the federal level.
- Legislation enacted in nearly a dozen U.S. states and pending in almost a dozen more.
- The European Union’s proposed EU AI Act, aiming to provide a regulatory framework for global AI governance.
Navigating the Challenges of Using AI
Effectively managing AI use is a challenge for risk professionals, especially as AI regulations continue to evolve. Many believe AI can enhance productivity and internal efficiencies, but concerns about accuracy and data security remain.
According to the Thomson Reuters report, 66% of professionals believe AI will introduce new challenges, with 25% citing compromised accuracy and 15% data security as their biggest fears. Human intervention is crucial to verify AI outputs, particularly in sensitive or high-stakes matters.
“I believe AI may make people less inclined to be engaged and more reliant on imperfect systems,” warned one survey respondent. “This will require regulation and constant technological change to keep up with AI-related risks.”
Ethical Cases of Using AI
There are concerns that AI’s increasing integration into business might compromise ethics. According to the Thomson Reuters report, one of the top five fears is that AI will “push ethics out of the window.”
To address this concern, it is essential to ensure that AI-generated information and documents are appropriate, accurate, reliable, and ethically permissible. AI is best used to jumpstart processes or reduce time spent on mundane tasks, not as a sole provider of accurate answers or conclusions. Here are some use cases:
- Jumpstart Research: AI can provide background information or updates on legislative developments and precedents, helping professionals make more informed, strategic decisions.
- Speed Up Document Review: AI can automate document analysis tasks, leading to quicker response times.
- Enhance Data Synthesis and Analysis: AI tools can help professionals sort files quickly, improve accuracy, and mitigate risk with expert human oversight.
- Speed Up Client Communication: AI can perform preliminary tasks, allowing professionals to add experienced advice faster, meeting client expectations more efficiently.
Navigating the ethical and regulatory issues of AI is challenging as the technology and regulatory landscape evolves. For more insights, explore the Future of Professionals report.
Source: legal.thomsonreuters.com
