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No Country for Old Lawyers: the new era of legal services and contractual regulation of liability and risk distribution in contracts between AI software houses and law firms

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Artificial Intelligence is revolutionizing and redefining the legal industry by automating the provision of legal services and augmenting cost effectiveness, reliability, and efficiency in the process. The implementation of AI-powered models in the legal sector is addressed in the thesis, with a particular emphasis on the main trends and implication of AI in legal practice, and on the automated execution of tasks, including in the revision and production of legal documents, integrated within law firms and how these can affect the productivity and quality of their services. Whilst AI systems feature countless benefits, its employment additionally raises up serious issues regarding liability and risk distribution, particularly whenever errors originate. The present research examines the legal ramifications of AI-driven mistakes in the provision of legal services, examining how risk and accountability are allocated amongst clients, software developers and operators and law firms, as well as a comparative examination of current regulatory requirements and industry practices. We deepen and specialize the scope of the study by analyzing cases of AI software integrated into a Portuguese law firm and the contractual relationship between them in light of domestic and European law.

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Software Artificial Intelligence Liability Automation Legal Services Risk distribution Law firms

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Licença CC