Online Legal Tools: Top 3 Things to Consider Before Using

The last few years have seen a rapid proliferation of online legal tools, many of them leveraging different types of Artificial Intelligence (AI) models, aimed at giving users a convenient, cost-friendly option for legal services. While the quality and efficacy of these online resources are platform-dependent, we’ve begun to see a few trends people should consider before hitting ‘generate’ on a legal tool website.

We’ve compiled these trends into a list of the Top 3 things to consider when using online legal tools.

Location, Location, Location

Rules vary jurisdiction by jurisdiction. Depending on where you are, laws and regulations can differ quite dramatically. These differences are not always writ large, as in the case of different countries. A few simple blocks can change the legal landscape, as in the case of municipalities with different bylaws and regulations.

This inherent variety is a key consideration when using an online legal tool. Is the AI model behind the tool pulling data specific to your jurisdiction? Are its clauses and references verified and up to date, or are they approximations derived from other locales?

Users may be surprised to learn their contract does not comply with applicable jurisdictional requirements. This concern of cross-border usage can also lead to another potential pitfall, data usage and privacy risks.

Questions of Data Usage and Privacy

Another significant concern about using an online legal tool is the potential misuse of confidential or proprietary information. Does the website sell its data to third parties for additional revenue? Is entered data available to parent companies or other investor stakeholders? What rules govern access to the data by government and law enforcement entities?

A licensed legal professional in your jurisdiction will be bound by a code of conduct governing questions of privacy and attorney client privilege. Depending on the platform, an online legal tool could be governed by different rules, causing users to potentially expose themselves to unintended risks simply by entering info into a form.

Identifying and Addressing Risks

Contract language is a useful tool to help identify and address potential risks in any legal agreement. By collaborating with an experienced legal advisor, a client can tailor contractual terms to address specific risks associated with their situation and align the agreement with their risk tolerance. In the case of an online legal tool, however, the AI model may not have the complexity or design to tailor and coordinate clauses sufficiently. Again, this could subject users to unintended risks.

Useful, But With Caution

Online legal tools can be a valuable and useful resource for companies and individuals. But they should be approached with caution and users should have clarity around some of these key questions before they hit generate. And when in doubt, contact your trusted legal advisor to discuss.

For questions around contract language, please contact Daphne G. Chu.