At the open seminar titled "What is Legal Tech, and Can Anyone Offer Legal Services in the AI Era?" hosted by the Center of Excellence for Artificial Intelligence at the beginning of December, Professor Tanel Kerikmäe, Director of the Law School at TalTech, provided an in-depth analysis of developments in AI and the legal field, highlighting both the potential opportunities and risks.
Kerikmäe began with an overview of how AI is already being used in judicial systems and how it might influence the daily work of legal professionals and broader legal practices in the future. While AI has the potential to make law more accessible and efficient, its use comes with numerous challenges, including technological, ethical, and legal issues.
He pointed out that the use of AI in the U.S. legal system has already sparked significant controversy. For instance, the COMPAS algorithm was used in criminal proceedings but was found to be racially biased, discriminating against Black defendants. This case has led to critical views of AI applications in the legal field, with the European Parliament closely monitoring the situation to prevent similar issues within the EU. Although AI could potentially assist judges and lawyers in making faster and more efficient decisions, concerns about data bias and the impartiality of justice remain pressing.
Kerikmäe also introduced the concepts of legal tech and reg tech. Legal tech refers to technologies that replace or assist lawyers in their daily work, such as drafting contracts and managing litigation. On the other hand, reg tech focuses on helping organizations comply with regulatory requirements. Kerikmäe cautioned that AI-driven solutions might reshape the workflow of legal professionals but could also threaten the traditional billable-hour model on which many large law firms rely.
In Europe, countries like Scandinavia, Spain, and France are leading the adoption of legal technology, while Estonia lags behind. The UK government has allocated substantial funding for the development of legal tech, whereas Estonia's AI strategy and innovation budgets remain relatively modest. Legal institutions, including courts, are developing digital solutions, but in Estonia, the government often waits for guidance from the European Commission before implementing AI.
Kerikmäe emphasized the need to adapt legal education to technological changes. Traditional law schools still focus on teaching principles and procedures, while legal technology demands a new generation of lawyers skilled in both law and technology. In Estonia, however, legal education remains conservative and strictly regulated, making it difficult to integrate new technologies. He noted that while large law firms fear AI-driven changes, younger lawyers and tech-based startups might embrace them more readily.
The economic impact of these changes is also significant. New technologies could make legal services more affordable and accessible while threatening traditional law firm business models. Many large companies, such as Deloitte, PwC, and Ernst & Young, have already established their own legal tech divisions, reducing the demand for traditional law firms.
In conclusion, Kerikmäe believes that the future development of legal technology requires multidisciplinary collaboration, critical digital literacy, and flexibility. He warned that overly rapid technological advancements could lead to serious ethical and practical problems, especially if data and algorithms are inaccurate or biased. He advised legal professionals to remain open to innovations while maintaining a critical and cautious approach to ensure the quality and reliability of justice.
TalTech AI is a Centre of Excellence established by the School of IT and the Department of Software Science at TalTech, bringing together TalTech's expertise in artificial intelligence (AI). The center's mission is to advance AI development, research, and education by providing an interdisciplinary platform for scientific projects, applied research, and training. TalTech AI collaborates closely with both the private sector and government institutions, with the goal of becoming Estonia’s leading hub for AI development, research, and consulting.