AI and The Hype Cycle: Navigating Innovation in LegalTech

BY
LegalTech in Leeds

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According to the 'Hyper Cycle', some forecasters believe that a shift in the perception of AI will soon occur.

Artificial Intelligence (AI) has become a transformative force across industries, and LegalTech is no exception. From automating routine tasks to revolutionising case management and legal research, AI’s potential in the legal industry seems boundless.

However, as with any technology innovation, AI has become entangled in what’s commonly known as the 'Hype Cycle.' This concept describes the typical trajectory of over-inflated expectations, followed by a dip in interest, and eventually stabilisation as the technology matures and finds practical applications.

Our September LegalTech in Leeds Learning Lunch held in partnership with The University of Law, brought together a diverse set of voices from both academia and the legal industry to explore what challenges, and opportunities, will arise as AI reshapes legal practice.

The session discussed the implications of AI on the legal landscape and the challenges posed by both the hype and reality of AI adoption in law, and how we can future-proof legal education to ensure students aren’t just users of technology but innovators.

The session explored:

  • AI-powered learning tools in the classroom
  • Preparing students for the fast-evolving landscape of LegalTech
  • The ethics and inclusivity of AI in education

Understanding the AI Hype Cycle

The Hype Cycle, as defined by Gartner, is a graphical representation of the maturity and adoption of new technologies. It begins with the 'Innovation Trigger,' where a technology first captures attention, and rises swiftly to the 'Peak of Inflated Expectations.' Soon after, disillusionment sets in, leading to the "Trough of Disillusionment," before the technology climbs a 'Slope of Enlightenment' and finally reaches the 'Plateau of Productivity.'

For AI in LegalTech, we’re arguably at the juncture between the Peak and the Trough. The excitement surrounding AI’s capacity to streamline legal workflows, such as document review and predictive analytics, has led to inflated expectations. Will AI robots replace lawyers? Will AI make legal professionals redundant? Concerns that AI would bring the total collapse of the legal profession as we know it seems very unlikely now.

The reality of AI in Legal is far more unrefined. While AI can automate repetitive tasks and augment legal research, the complex nature of legal reasoning and interpretation remains firmly in human hands.

Insights from Patrick Grant of The University of Law (ULaw)

The University of Law emphasised that AI should be viewed as an enabler, not a replacement. The narrative around AI must shift from sensationalist predictions of machines overtaking legal roles to a focus on practical, collaborative applications.

Patrick Grant, AI Professor from The University of Law, delivered thought-provoking insights during the event, particularly regarding the evolving role of legal education in the age of AI. He emphasised the need to equip future lawyers with the skills to understand and work alongside AI-powered tools, rather than be replaced by them.

“The role of legal education is not just to keep up with technological advances, but to actively shape how future lawyers use these tools. Our graduates need to lead, not follow, in this tech revolution” said Grant during the session.

AI's Real Impact on LegalTech: Bridging the Gap Between Hype and Reality

While the hype around AI promises to automate many legal processes, the reality is more incremental. For instance, AI-powered platforms are currently making significant strides in areas such as:

  • Document Review: AI systems can efficiently scan large volumes of legal documents, identifying relevant information with speed and precision.
  • Predictive Analytics: Machine learning models are now being used to forecast case outcomes based on historical data, helping legal teams make more informed decisions.
  • Contract Automation: AI is shortening the time required for drafting and reviewing contracts, accelerating transactions and lowering costs.

Despite these advancements, the idea that AI will entirely replace human judgement is still far from reality. Legal practice involves deep analytical thinking, ethical reasoning, and nuanced understanding, skills that remain uniquely human. AI can assist with repetitive tasks, but it cannot replicate the moral and strategic insights that human lawyers bring to their work.

How Education is Evolving with AI Integration

As AI becomes increasingly integrated into the legal industry, legal education is evolving to meet the demands of this technological shift. Institutions like The University of Law are at the forefront of these changes, rethinking their curricula to reflect the growing role of technology in legal practice.

To prepare students for a rapidly evolving technological world and to future-proof their skills, Grant has designed three modules for ULaw’s LLB programme: Legal Tech, Legal Tech and Innovation, and 21st Century Legal Practice.

AI must become a core element of legal education, not just another tool we teach students to use. The real value lies in fostering a mindset that allows them to adapt and thrive as technology evolves, ensuring they're prepared not just for today’s tools, but for the innovations yet to come.

Mock trials, internships, and practical case studies are increasingly incorporating AI tools to prepare students for a legal environment where AI plays an integral role. This shift is ensuring that the next generation of lawyers is well-equipped to navigate the AI landscape, both as legal professionals and as ethical stewards of technology.

VR

The way students are engaging with their learning is changing and ULaw has started to adopt technologies such as VR and AI to enhance the learner experience.

Through the creation of a Metacampus, ULaw is utilising VR to provide immersive learning, allowing students to explore virtual environments related to their studies. AI is also being used to develop soft skills of students through VR simulations which use AI to analyse the students language and behaviour to provide constructive feedback on how to improve.

ULaw has also created ALiCE - an AI tool which helps international students at the university overcome language barriers in their learning. Learning Technologist, Wolf Wright explains:

"The prevalence of AI working practices within the legal sector is growing exponentially, and in presenting ALiCE we wanted to show legal professionals a methodology that can be adopted for all manner of procedures and processes. Whilst ALiCE is primarily focused on language evaluation, the process of constructing and refining a custom GPT with a bespoke knowledge base is one that could be utilised within practices to streamline workflows and mean firms are seeing greater levels of efficiency. It was exciting to be able showcase one of the ways we are harnessing the power of AI at ULaw to help the next generation of legal professionals to those already working in industry, showing why we are leading the way in utilisation of AI in legal education"

The Future of AI in LegalTech: Navigating the Plateau of Productivity

As the legal industry moves beyond the Trough of Disillusionment and towards a more measured understanding of AI, the technology’s future appears promising. Law firms and legal departments are realising that AI is not a magic solution, but a valuable tool that enhances, rather than replaces, human expertise.

Ultimately, the key to AI’s success in law lies in managing expectations, fostering comprehensive education, and encouraging collaboration. As the Hype Cycle progresses, those who view AI as a tool to complement, rather than supplant, human expertise will be best positioned to thrive in this new era of legal practice.

Reflecting on the event Patrick Grant commented:

As ever, the live learning lunch was an absolute standout! Academia and industry came together once again, sparking discussions that were not only forward-thinking but grounded in the real world. Leeds continues to stake its claim as the go-to place for LegalTech innovation, and this event proved we’re still leading the charge. The future’s looking very bright—and, as always, pretty exciting too!

If you're an AI Technology provider or part of a legal team adopting AI and would like to join future discussions, we invite you to express your interest by messaging us on LinkedIn or emailing us at leedslegaltech@whitecapconsulting.co.uk