The advancement of artificial intelligence has been rapid and amazing recently. The potential of AI in business is undeniable – this also applies to legal services. AI is able to have analysis of a great deal of data, produce text quickly, and even predict results under certain circumstances. More than that, AI has been employed in various ways in the legal field: partial automation of document drafting, searching for case law on various topics, and streamlining due diligence processes are examples of the ways technology can facilitate and speed up the work of lawyers. Many companies have already utilized AI in their operations in order to assist in finishing such tasks as drafting contracts or analyzing risks.

But can AI displace the role of an attorney as a legal advisor of a company? The short answer is no. In spite of the fact that AI has excellent enough as tool, its ability to understand complex contexts, have assessments of risks, and take responsibility is still very limited. This article will dive into the key reasons why human expertise, judgment, and interpersonal skills are still indispensable in legal work, despite the development of AI.

AI as a legal tool – not as an independent advisor

There is no denying that AI can quickly produce legally effective text, analyse large amounts of data, and find relevant information on legislation much faster than a human. Furthermore, AI is an excellent tool for such tasks as contract drafting, conducting due diligence in corporate transactions, and conducting background research associated with legislation. Many law firms have already made effective use of AI in these tasks.

Nevertheless, one of the reasons why AI cannot replace the role of a lawyer is its limitations: It is due to the fact that AI does not understand business objectives, organizational strategy, or personal relationship as part of business operations that it cannot interpret a situation in its full context. Nor can AI have independent assessments of which option is best for the client—or which risk is worth taking in any given situation.

Similar to a calculator, AI gives the right answer when you know what you want to calculate. But it doesn’t tell you what to calculate—or why.

Corporate law is rarely black and white

In corporate law, few situations are unambiguous. In many cases, the law supplies a framework but not a clear-cut answer. Laws contain numerous exceptions that are applicable when certain conditions are met. Interpretation, consideration, and application to a specific case demands experience, understanding, and an overview of the whole picture.

The same legal issue can lead to different conclusions depending on the company’s industry, business model, contracting parties, or future goals. A solution working for one company may be completely unsuitable for another.

AI can identify the relevant legal provision. Even so, it cannot have assessments of the ways it should be applied in practice to a specific situation, business environment, and risk profile. Such an assessment always requires human expertise.

Attorneys are responsible advisors – artificial intelligence does not bear responsibility

One of the key differences between the work of an attorney and AI is responsibility. Attorneys give advice in their own name and take on professional and legal responsibility for it. This responsibility is not just formal but guides their actions and increases the weight of their advice. A certain institute regulates and supervises attorneys as an independent public law entity, thus guaranteeing professional conduct and compliance with ethical guidelines, as well as maintaining public confidence in legal services.

Naturally, this supervision does not extend to legal advice provided by AI. AI does not have legal personality – it cannot take on responsibility and is not bound by the same ethical and professional obligations as an attorney. When a company makes decisions on the basis of legal advice, it must be able to count on the legal advice it receives.

One important factor increasing the accountability and reliability of attorneys is the strict confidentiality obligation that binds them. The use of AI, on the other hand, still raises unanswered questions about information security, data protection, and privacy, together with the ways the information fed into AI tools is used, collected, or stored by AI service providers. Trust is built between people – not between an algorithm and a user.

AI training is based on the past – attorney looks to the future

Existing data and past solutions are the cornerstones of AI systems which are unable to creatively assess new, unprecedented situations or develop new legal arguments for such situations. The work of an attorney is not just about having repetition of information, but also about creating something new: developing strategies and solution models and thinking proactively, while also anticipating the future moves of other parties. Our law firm welcomes the new opportunities brought to our field by technology, but we have firm beliefs that legal expertise, human judgment, and ethical responsibility will remain with people—not machines—in the future.

Coordinating business and legal matters requires experience and insight

A good attorney does not just quote the law to their client. An attorney helps their client make business-savvy decisions while taking consideration of legal aspects. This means being able to see the big picture, anticipate underlying risks, and assess options for different situations. For example, an attorney can advise their client when it is recommendable to be flexible on certain terms in contract negotiations and when to take a tougher line; an attorney may recommend when it is recommendable to deal with a dispute amicably and when to take it to court or arbitration; an attorney supplies guidance on how the requirements of new legislation should be harmonized with the company’s operations in practice without adversely affecting the company’s business.

Such issues are not purely legal but also involve strategic elements requiring a more comprehensive understanding of the company’s business and background. Strategic decisions cannot be automated and outsourced to AI. AI can tell a company what the law says, but an attorney can explain what it means in the context of a specific company. AI can assist attorneys in their work and facilitate certain stages of the process, but it cannot replace the work of an attorney. What can be said is that AI, combined with an attorney’s strategic, analytical, and applied thinking model, forms an effective working partnership, but AI alone is not able to offer complete legal advice and always requires a human partner to analyse and apply legal information on a case-by-case basis.

The legal services of the future will undoubtedly be increasingly based on collaboration between humans and technology. Law firms that know how to use AI effectively in routine tasks can focus more on work generating added value: demanding legal issues, risk management, contract strategy, dispute prevention, and business support. At its best, AI acts as a partner to experts, speeding up and refining background work. Nevertheless, the final situation-specific assessment, decision-making, and responsibility always remain with humans—and that is a good thing. The development brought about by technology is not a competition between humans and AI. It is about the ways experts can use technology in a wiser way – for the benefit of their customers.

Conclusion: The value of an advisor lies not in knowledge, but in understanding

Bringing enormous opportunities and efficiency to the field of law, AI speeds up work, increases accuracy, and frees up experts’ time for those strategic tasks. However, what AI does not understand is your company’s business as a whole, its goals, and the company’s operating environment in general. AI cannot interpret conflicting interests, make ethical choices, or recommend the strategically right solution for your company in a specific legal situation.

It is owing to the fact that success in corporate law is not only about knowledge, but also about the ability to apply it correctly that attorneys are and will remain trusted advisors to company management – now and in the future.