Bachelor's Thesis Anita Feigl

Observing the Effects of AI-Assistance in a Contract Analysis Workflow - A Case Study

Abstract

 The use of technology in the legal field is gaining increasing importance, with new tech nologies such as artificial intelligence (AI) and natural language processing (NLP) receiving particular attention. In this case study, we conduct a detailed analysis of a specific legal tech application and its impact on the workflows of the involved attorneys. We begin with a comprehensive literature review, offering an overview of the incentives, barriers, and effects associated with legal tech adoption. This review serves as the theoretical foundation for developing interview guidelines, which we use in semi-structured interviews with three attorneys from a Bavarian law firm specializing in small and medium-sized enterprises. The interviews and a field experiment at the law firm explore the incentives, barriers, and effects of implementing AI-assisted software for analyzing and correcting employment contracts. We specifically observe the impact of this software on the attorneys’ workflows. To better understand the changes in workflow due to the software, we created two process models: one for the workflow with the software and one without it. The comparison of our case study with legal tech applications described in the literature reveals that factors such as attorneys’ openness to new technologies and a thorough under standing of AI’s functionality, potential, and risks can significantly help overcome potential barriers and maximize the benefits. Additionally, a robust technological infrastructure within the law firm can help minimize barriers and contribute to more favorable outcomes. Overall, we conclude that efficiency gains, mainly through time savings, streamlined workflows, and improved performance, are the key incentives for adopting such technologies. At the same time, data privacy remains the highest priority. Our work addresses these topics in detail, providing a valuable foundation for future developments in legal tech and supporting decision-makers in implementing such applications.

Research Questions

1. What are effects, incentives and barriers to adopting AI in the legal domain?

2. What are the incentives and barriers to adopting an AI-Contract-Analysis software in a German law firm?

3. How does the adoption of an AI-Contract-Analysis software in a German law firm affect the existing workflows and what are contributing factors for costs and benefits?

4. What are the largest drivers for costs and benefits and what are remaining challenges? (lessons learned)