8 min read

The Myth of Legal AI: Why No One is Doing It Right (...Except Us)

Published on
November 10, 2024
Contributors
Devansh
AI Researcher
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Picture this: A senior associate at a prestigious law firm is preparing a critical brief. They're using one of the most highly-funded, cutting-edge AI legal tools on the market to assist with research. The AI confidently cites Smith v. Jones (2019) to support a key argument. The associate, trusting the tool's reputation, quickly verifies the citation—it's a real case. Satisfied, they incorporate it into the brief and submit it to their partner for review.

The next morning, the partner calls the associate into their office. They point out that while Smith v. Jones is indeed a real case, its analysis is completely misapplied to the current situation. In fact, a careful reading shows it actually undermines their argument. The partner raises concerns about the reliability of the AI tool and the potential impact on their case strategy.

This isn't a hypothetical scenario—it happened at a top-tier law firm, witnessed firsthand by one of our team members. And it's not just about hallucination or making up fake cases. It's about the dangerous implications of AI that can cite real cases but fundamentally misunderstand or misapply their legal principles. As BigLaw attorneys ourselves, we've seen how these AI shortcomings can jeopardize cases and reputations.

In today's legal landscape, where AI tools are becoming commonplace, this kind of error isn't just embarrassing—it's potentially malpractice. It undermines the credibility of the lawyer, the firm, and worst of all, it fails the client.

The legal industry is at a crossroads, with a growing demand for AI tools to streamline processes, improve efficiency, and reduce costs. But here's the hard truth: nothing out there today qualifies as true Legal AI. And the stakes are too high for anything less.

The tools currently labeled as "Legal AI" aren't really thinking like lawyers. They're wrappers around general-purpose language models—like GPT or BERT—trained on a vast amount of data without any legal-specific reasoning capabilities. This kind of surface-level AI offers general answers but fails to deeply understand the nuances of law, resulting in hallucinations, unreliable outputs, and low trust from legal professionals.

At IQIDIS, we're building something that doesn't exist yet. We're BigLaw attorneys who have faced the inefficiencies, complexities, and bottlenecks of legal work firsthand. We're not just techies making guesses at what might help lawyers. We are lawyers who know what truly needs to be solved, and we've built IQIDIS to be the world's first Real Legal AI, one that is tailored to the practice of law and built with defensibility in mind.

Here's why that's critical, and why nothing else on the market comes close.

Hallucinations and Surface-Level Responses: The Crux of the Problem

Most AI tools in the market today are based on large language models (LLMs) like GPT-4, and while these models are powerful, they were never built specifically for the legal industry. This results in a fundamental flaw: they don't understand the context, complexity, or depth of legal work.

For example, when AI tools trained on general data attempt to handle legal matters, they often produce hallucinations—inventing facts, legal principles, or interpretations that are simply not true. These models struggle to incorporate new, real-time information or cite defensible legal precedents because they were never designed to handle these nuances.

Think about it: Would you trust a lawyer who pulls legal arguments out of thin air without backing them up with real law or precedent? Of course not. But that's exactly what many of these AI systems do. They sound convincing, but without a deep understanding of legal reasoning and defensible output, they cannot be trusted.

Why Lawyers Can't Rely on "Wrapped" AI Models

The biggest competitors in the market today are using general models like GPT and slapping a "legal" label on them. But lawyers don't need an AI that can mimic human conversation or generate text. They need an AI that understands the law—real, defensible legal principles.

Here's where IQIDIS is different. We've built proprietary legal algorithms and embeddings that aren't just superficial layers on top of existing models. We've trained IQIDIS to think like a lawyer. Our AI does more than pull from a giant language model. It reasons, analyzes, and creates outputs that you can use in court or client meetings with confidence.

For instance, in a recent M&A transaction, IQIDIS analyzed over 10,000 pages of contracts and corporate documents in just hours, identifying potential risks and inconsistencies that would have taken a team of lawyers weeks to uncover. This isn't just about speed—it's about depth and accuracy. IQIDIS flagged a seemingly minor clause that could have led to significant tax implications post-merger, something that might have been overlooked in a traditional review process.

Our proprietary algorithms understand legal nuances in a way that no generalized model can. For instance:

Contextual Mastery: IQIDIS can handle an infinite search context, meaning it can process and reason through thousands of documents at once while still maintaining legal context and nuance.

Citation and Accuracy: When IQIDIS produces a legal argument, it provides accurate citations and a legal analysis that is grounded in real law—not some hallucinated response based on unverified information.

We Solve the Real Concerns of Lawyers

Lawyers have three core concerns when considering AI tools:

  1. Security: Legal data is sensitive, and many firms are hesitant to use cloud-based solutions that could potentially expose client information. IQIDIS not only offers a SaaS platform, but as well as custom, in-house deployments, ensuring that legal data never leaves the firm's secure infrastructure. Our system can be fully integrated within your existing IT framework, with no need for external data transfers. This means you maintain complete control over your clients' confidential information, adhering to the strictest data protection standards and regulations.
  2. Accuracy and Ethics: Hallucinations and inaccuracy are unacceptable in law. What makes IQIDIS unique is its ability to minimize hallucinations while delivering legally defensible outputs. Sure, other platforms can limit fake case citations, but even then, they miss the analysis; often pulling from the language or logic of a case, rather than the actual impact or affected law. We don't just generate answers; we reason through them like a real attorney would.
  3. Efficiency: IQIDIS is designed to work within the lawyer's workflow. Whether it's analyzing documents, conducting research, or drafting memos, IQIDIS integrates seamlessly and efficiently into the day-to-day tasks of legal professionals.

AI For Lawyers, By Lawyers

This is where we truly differentiate. We're not tech entrepreneurs blindly guessing at what lawyers need. We are BigLaw attorneys, associates and partners, who have lived and breathed the legal world... for years. We know the grind of manual research, drafting, reviewing, and billing countless hours for mundane tasks.

IQIDIS was born out of our own frustrations with the archaic way law is practiced today. Every feature of IQIDIS—from its infinite document upload capabilities to its real-time legal strategy insights—has been built to solve real-world legal problems.

For example, the document search capabilities are something that lawyers tell us they've always needed: the ability to search through massive amounts of documents while maintaining legal context and nuance, providing insights that are actionable in court. The same goes for our citation generator and direct-to-Word functionality—these are built to meet the specific, daily needs of attorneys.

Addressing the Skeptics (Including Ourselves)

We get it. We were skeptics too. As BigLaw attorneys, we initially scoffed at the idea that AI could truly understand the nuances of legal work. But we've seen the writing on the wall: those firms that integrate AI smartly will succeed big, while those that don't risk falling behind.

Our journey with IQIDIS began from a place of skepticism, but it was driven by a realization that the legal industry is changing, whether we like it or not. We've built IQIDIS not to replace lawyers, but to empower them—to handle more complex work, to serve clients better, and to focus on the high-value tasks that truly require human expertise.

The ROI Speaks for Itself

While we can't disclose names just yet, a firm using IQIDIS is seeing unprecedented efficiency in their corporate work. They're completing due diligence and contract reviews in record time, allowing them to take on more fee-based work and handle a higher volume of billable hours per lawyer.

In concrete terms, they've reported:

- A 40% reduction in time spent on due diligence;

- A 30% increase in the number of deals they can handle simultaneously; and

- A 35-50% boost in overall lawyer productivity.

This isn't just about doing more work—it's about doing better work. Lawyers are now free to focus on strategic advice and complex problem-solving, the kind of high-value work that clients truly appreciate and are willing to pay premium rates for.

Why Lawyers Need Real Legal AI Now More Than Ever

The practice of law is being disrupted, and those who adopt true legal AI will be the ones who thrive in the new era. By reducing manual research, increasing efficiency, and improving accuracy, lawyers can serve clients better, faster, and with greater confidence.

But none of this can happen if AI tools aren't built specifically for legal use. Wrapping existing models like GPT-4 might get you surface-level answers, but it won't make you more competitive in the legal world.

At IQIDIS, we're building something different. We're building something real, and we're doing it from within the legal industry itself. That's why we're confident in saying: we are the only real legal AI solution out there today.

Ready to Join the Revolution?

If you're tired of "AI" tools that don't really deliver, that don't understand your work, and that can't be trusted, it's time to look at IQIDIS. Developed by BigLaw attorneys for attorneys everywhere, IQIDIS is the future of law.

If you're ready to see how IQIDIS can transform your legal practice, we invite you to join our priority consultation list. Due to high demand, we're scheduling consultations with qualified firms on a first-come, first-served basis. During these sessions, we'll discuss your specific needs and demonstrate how IQIDIS can seamlessly integrate into your workflow, boosting efficiency while maintaining the highest standards of legal work. Don't miss this opportunity to be at the forefront of legal innovation.

Let's build that future together.

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