Earlier this week, the world discovered AI can be unethical - and lie - in the financial sector. Now, in a groundbreaking demonstration, Luminance, an artificial intelligence company, showcased the potential of AI in the legal industry by conducting a fully automated contract negotiation between two opposing parties. This marks a significant milestone in advancing AI technologies and their application in legal processes. Although the demo lacked real stakes, it offered a glimpse into what the future might hold for contract negotiations.
Luminance's achievement is attributed to its large language model (LLM), trained on an extensive database of 150 million legal documents. This training equipped the LLM with a comprehensive understanding of legal concepts and terminology. The successful completion of this AI-powered contract negotiation signals a new era for the legal profession.
This development is part of a broader trend of customized AI models emerging from more generalist models like ChatGPT. Industry-specific LLMs are becoming increasingly prevalent, and we expect to witness more of these specialized AI models in various sectors.
Moreover, OpenAI recently introduced custom GPTs, empowering users to build and train their own AI models without requiring any coding expertise. This innovation caters to both ChatGPT users and ChatGPT Enterprise customers, enabling organizations to leverage the power of AI in their operations effortlessly.
Using bespoke AI models offers several advantages, including enhanced data privacy and targeted expertise. By leveraging Luminance's proprietary legal-focused model, Autopilot, companies can automate tasks traditionally performed by lawyers, such as negotiating contract terms. This automation streamlines the process, freeing lawyers' time to focus on more creative and complex aspects of their work.
One significant challenge in the legal profession is the time-consuming review of legal documents. However, LLMs like Luminance's Autopilot can swiftly understand and analyze vast volumes of information in mere seconds. By automating the review process, routine contracts such as nondisclosure agreements can be quickly assessed, saving legal professionals valuable time.
Jaeger Glucina, Luminance's chief of staff, emphasized the benefits of entrusting day-to-day negotiations to a legally trained and business-aware AI. By doing so, lawyers can dedicate their creativity where it truly matters, knowing that the AI can effectively handle the negotiations.
It is worth noting that even though AI handles the negotiation process, there is still oversight in place. During the live demo witnessed by CNBC's Ryan Browne, a live log displayed changes to clauses and suggested modifications.
"It’s super quick. Clauses were analyzed, changes were made, and the contract was finalized in a matter of minutes."
This feature allows lawyers to review the process thoroughly and ensure its accuracy, providing an extra layer of confidence.