Legal AI in 2025: Breakthroughs, Challenges, and Ethical Concerns
- Jeffrey Treistman
- Feb 26, 2025
- 4 min read
The legal industry has long been resistant to automation, relying heavily on human expertise, reasoning, and case interpretation. However, with the rapid advancements in artificial intelligence (AI), law firms have begun experimenting with AI-driven tools to streamline tasks such as legal research, contract analysis, and document drafting.
Recently, Linklaters, a leading Magic Circle law firm, conducted an ambitious study—the LinksAI English law benchmark—to evaluate whether AI can perform legal tasks at the level of a mid-level human lawyer. The study tested multiple AI models from OpenAI and Google, assigning them legal questions across 10 practice areas to assess their ability to analyze, interpret, and apply English law.
The results were mixed but promising. AI models, particularly OpenAI’s latest version, showed substantial improvement, scoring 6.4 out of 10—indicating that AI can assist lawyers but still requires significant human oversight.
This article delves deep into the evolution of AI in law, its current capabilities, limitations, risks, and the broader implications for the legal profession, regulation, and the future of legal education.
A Brief History of AI in Legal Practice
The Early Days: From Simple Automation to AI-Powered Research
AI's entry into legal practice dates back to the late 20th century with the emergence of legal research databases such as LexisNexis and Westlaw. These tools revolutionized how lawyers accessed case law, significantly reducing research time. However, they still required human input for search queries and result interpretation.
By the 2010s, machine learning and natural language processing (NLP) paved the way for AI-driven legal tools like:
ROSS Intelligence (2016) – Built on IBM’s Watson, designed for legal research.
Casetext’s CARA AI – Used contextual understanding to recommend relevant cases.
Kira Systems – A contract review AI adopted by major law firms.
Despite these advancements, AI systems were primarily assistive tools rather than independent decision-makers.
The 2025 Linklaters AI Legal Benchmark: Key Findings
AI Performance Over Time
Linklaters’ study tested six AI models across ten key legal practice areas. The AI’s performance was evaluated on three factors:
Substance – Accuracy of legal interpretations.
Citations – Use of relevant statutes and case law.
Clarity – Coherence and logical reasoning in responses.
The results from 2023 to 2025 show a steady improvement in AI's legal reasoning abilities:
AI Model | Year | Score (out of 10) | Strengths | Weaknesses |
GPT-2 | 2019 | 2.5 | Basic sentence formation | No legal reasoning, incoherent responses |
GPT-3 | 2020 | 3.8 | Improved NLP | Struggled with legal analysis |
GPT-4 | 2023 | 4.4 | Better factual accuracy | Poor at applying law to complex cases |
Bard | 2023 | 4.6 | Best model in 2023 | Lacked nuance and often hallucinated |
OpenAI’s o1 | 2024 | 6.4 | Strong in summarization, improved accuracy | Struggled with nuance and practical application |
Google’s Gemini 2.0 | 2024 | 6.0 | More accurate than Bard, better at citations | Needed extensive human oversight |
Breakdown by Practice Area
Certain legal practice areas proved easier for AI than others:
Legal Area | AI Performance (Out of 10) | Observations |
Contract Law | 7.2 | AI excelled in reviewing contracts but struggled with ambiguous clauses. |
Corporate Law | 6.8 | AI was useful in drafting agreements but lacked strategic foresight. |
Intellectual Property | 5.9 | AI could summarize cases but struggled with unique IP disputes. |
Criminal Law | 4.5 | AI lacked an understanding of case-specific nuances. |
Litigation & Dispute Resolution | 3.8 | AI failed in legal strategy and argument formulation. |
AI’s Role in Modern Legal Practice
AI in Legal Research
AI has significantly reduced research time, allowing lawyers to find relevant case law faster. However, AI struggles with new legal precedents and interpreting statutory ambiguity.
"AI is an excellent assistant, but it cannot replace a lawyer’s judgment," says David Green, Senior Partner at Linklaters.
AI in Contract Analysis
AI tools like Kira Systems and Evisort have transformed contract review by identifying key clauses, risk factors, and inconsistencies.
Task | Time Taken (Human) | Time Taken (AI) |
Reviewing a 50-page contract | 5 hours | 20 minutes |
Extracting key clauses | 1 hour | 5 minutes |
AI in Litigation
AI has been used to predict case outcomes, analyze jury behavior, and even draft legal arguments. However, it still lacks the ability to strategically argue cases in court.
"Legal strategy is more than data—it’s about persuasion, negotiation, and experience," explains Emily Carter, Litigation Partner at Clifford Chance.
Challenges and Risks of Legal AI
AI Hallucinations and Fabricated Citations
One of the biggest concerns is AI’s tendency to generate false case law. This has already led to lawyers being sanctioned for submitting AI-generated fake citations.
Ethical and Regulatory Concerns
The Solicitors Regulation Authority (SRA) has warned against overreliance on AI. Similarly, law firms like Hill Dickinson require lawyers to get explicit approval before using AI.
"AI is a powerful tool, but firms must implement strict oversight to ensure ethical compliance," states James Dawson, Head of Compliance at Hill Dickinson.
Job Displacement: Will AI Replace Junior Lawyers?
AI is reshaping entry-level legal jobs, leading firms to hire fewer junior associates while relying more on AI-driven legal assistants.
Year | % of Firms Using AI in Legal Research | % Reduction in Junior Hiring |
2020 | 15% | 2% |
2023 | 40% | 10% |
2025 | 65% | 18% |
"Junior lawyers will still be needed, but their roles will shift toward AI supervision," predicts Richard Fenton, Managing Partner at Allen & Overy.
The Future of AI in Law: An Augmented Profession
AI as a Legal Assistant, Not a Replacement
AI will not replace lawyers, but it will make them more efficient. The future of legal practice will involve AI-human collaboration, where AI handles repetitive tasks while humans focus on strategy and interpretation.
AI in Legal Education
Law schools are already adapting by incorporating AI ethics and legal tech training into their curricula.
Law School | AI & Legal Tech Course Introduced |
Harvard Law School | 2023 |
Oxford Law | 2024 |
NYU Law | 2025 |
AI’s Role in the Legal Future
AI is rapidly transforming legal practice, offering efficiency gains but also introducing new challenges. While AI can handle research, contract review, and basic legal tasks, it lacks the strategic thinking, judgment, and advocacy that define great lawyers.
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