The legal profession stands on the brink of a transformative era, heralded by the advent of generative AI. Recently, KPMG Australia unveiled its KymTax Gen AI tool, an innovation designed to revolutionise tax advice. This development serves as a template for a broader application of generative AI across various legal fields, offering substantial benefits not only to lawyers but also to other professionals such as accountants, financial planners, real estate agents, conveyancers, family offices, and the general public.
Currently Generative AI provides a wealth of general legal knowledge in diverse areas such as superannuation, taxation, estate planning, property law, commercial law, and family law. However it is hard to know whether the responses provided are 100% accurate as they are taken from a wide training field. However, by utilising a model similar to KPMG’s approach, which involves the development of a unique training model based on specific materials, books, and lectures focused solely on individual subjects, the legal profession can harness the full potential of AI. This specificity is crucial, as it ensures precise and reliable answers, avoiding the pitfalls of generalisation that can lead to AI "hallucinations" or errors.
The AI-Enhanced Legal Practice
Generative AI tools trained on specific legal topics can bring a myriad of advantages to legal professionals, particularly suburban lawyers and others needing legal support. These tools can provide immediate, accurate answers and strategic guidance, significantly reducing the time spent on research and consultation. Lawyers can quickly access relevant information, allowing them to focus on higher-level analysis and client interactions. This rapid access to information can be particularly beneficial in areas like tax, estate planning and property law, where timely advice is often critical.
For accountants, financial planners, and other professionals, Generative AI can offer a reliable source of legal information, enabling them to provide comprehensive advice to their clients. Real estate agents and conveyancers, for example, can use AI to navigate complex property regulations and ensure compliance, while financial planners can leverage AI to assist with estate planning and superannuation queries. Family offices and the general public can also benefit from AI's ability to demystify legal concepts and provide clear, actionable advice.
Case Study: The AI-Driven Tax Revolution
Traditionally, a business seeking advice on a complex tax issue would need to schedule a meeting with a tax specialist, provide extensive documentation, and wait days or even weeks for a comprehensive response. The specialist would manually review relevant tax Acts, precedents, and financial data before providing advice. This process, while thorough, is time-consuming and can delay critical business decisions.
With a special purpose Generative AI, the same business can input their query into the AI tool, which has been trained on extensive tax law databases and case studies. The AI can instantly analyse the query, reference pertinent laws and regulations, and generate a detailed response within minutes. This not only expedites the decision-making process but also ensures that the advice is based on the most current legal information available.
For example, a business needing advice on the tax implications of a cross-border transaction can receive immediate guidance on applicable international tax treaties, compliance requirements, and potential tax liabilities. This rapid access to information empowers businesses to make informed decisions swiftly, enhancing their agility and competitiveness. Once received they can then follow through a review process at the highest level with a taxation adviser - but in short, all the heavy lifting has been done and quickly!
Conclusion
The integration of special purpose Generative AI into the legal profession and roles that need legal insight such as accountants and financial planners promises to revolutionise the way legal knowledge is accessed and applied. By adopting a model that emphasises specificity and focuses on individual legal subjects, AI can provide accurate, reliable answers that meet the diverse needs of lawyers and other professionals. This approach ensures that AI complements human expertise, enhancing efficiency and accessibility across the legal landscape. As the legal profession continues to evolve, embracing special purpose generative AI will be key to staying ahead in a rapidly changing world.
And it is just around the corner .........