Even if you try and avoid it, AI is here, and it is seemingly here to stay. In simple terms, artificial intelligence (AI), is a technology that enables computers and software to perform tasks that would normally require human intelligence, such as analysing data, recognising patterns, generating content and making recommendations.
When used correctly, AI can be a powerful business tool, helping organisations improve efficiency, reduce costs and make better-informed decisions. However, it is important to understand both the opportunities and the risks before introducing AI into your business.
The do’s
AI can deliver significant benefits when used responsibly and with appropriate human oversight.
- Use AI to automate repetitive tasks, AI is particularly effective at handling routine administrative activities such as data entry, scheduling, transcribing meetings, inbox management and customer service enquiries. Automating these tasks can free up employees to focus on higher-value work that requires creativity, problem solving and relationship building.
- Use AI to support contract reviews and legal administration, AI can quickly review large volumes of contracts and identify key provisions such as termination rights, renewal obligations, payment terms, change of control clauses and potential areas of legal risk. This can help businesses organise information and identify issues for further consideration, reducing the time spent on initial document review. But please treat this with caution – see below!
- Use AI to identify the right legal adviser more efficiently, AI can help you narrow down the type of solicitor you need by analysing your issue and identifying the relevant area of law. It can also help compare firms, practice areas and client feedback, saving time that might otherwise be spent carrying out extensive online searches and reviewing numerous websites and reviews.
- Use AI to support better decision-making, AI can analyse large volumes of data quicker than humans, helping businesses identify trends, forecast demands and uncover valuable insights. Used correctly, this can lead to smarter and more informed business decisions.
- Use AI to improve productivity and efficiency, from drafting content and summarising documents to highlighting key contractual provisions and analysing customer feedback, AI can help businesses complete tasks more quickly while reducing the administrative burden on staff. This can improve operational efficiency and help teams focus on more strategic work.
- Keep human oversight in place, AI should be viewed as a tool that supports employees rather than replaces them. Human judgment remains essential when reviewing outputs, making important decisions and ensuring content is accurate and appropriate.
- Develop clear policies for AI use, businesses should establish guidelines covering data protection, acceptable use, transparency and accountability. Having clear internal policies can help ensure AI is used responsibly and consistently across the organisation.
The don’ts
While AI offers many advantages, businesses should also be aware of its limitations and potential risks.
- Don’t assume AI can replace professional legal advice, AI can identify common contractual provisions and summarise documents, but it cannot fully understand commercial objectives, industry context or the legal nuances that often determine whether a provision presents a genuine risk. AI may overlook important issues or provide misleading conclusions, particularly where contracts are complex or unusual. Its output should always be reviewed by a legal professional before important decisions are made.
- Don’t ignore data protection risks, many AI tools rely on large amounts of data. Entering confidential, sensitive or personal information into AI systems without appropriate safeguards could create privacy and compliance issues. Businesses should ensure they comply with data protection obligations and understand how AI providers use submitted data.
- Don’t overlook bias and data quality issues, AI systems learn from data created by humans. If training data contains inaccuracies or biases, AI outputs may reflect those same issues. Poor-quality data can also result in poor-quality outcomes, leading to flawed decision-making.
- Don’t become over-reliant on AI, AI can improve efficiency, but businesses should avoid depending entirely on technology. Human expertise, empathy, creativity and professional judgment remain critical and cannot be replaced by algorithms.
- Don’t ignore disclosure and transparency requirements, if AI is used to create content, reports or customer-facing materials, businesses should consider when disclosure may be appropriate. Failure to be transparent about AI-generated content can create reputational risks and potentially lead to customer complaints or legal concerns.
- Don’t underestimate implementation costs, while some AI tools are affordable, implementing AI effectively can require investment in software, training, monitoring and specialist support. Businesses should carefully assess costs and expected returns before adopting new solutions.
- Don’t assume you or AI know the right questions to ask, AI is only as effective as the information and instructions it receives. Many legal risks are identified through experience and judgment rather than a simple review of a document. If the user does not ask the right questions, AI may fail to identify significant issues or provide an incomplete picture of the risks involved.
How we can help
AI can be a valuable tool for reviewing contracts, summarising information and identifying potential areas of risk. However, AI is not a substitute for legal expertise. While it may highlight particular clauses or concerns, it cannot assess them within the wider commercial and legal context of your business.
Equally, AI can only assess the issues it is asked to consider and may fail to identify risks which an experienced legal adviser would recognise immediately.
At RBG, we use technology for efficiency but combine it with specialist legal expertise and commercial understanding. Our Corporate Commercial team can help you interpret and manage legal risks, review and negotiate contracts, implement appropriate governance and compliance procedures, and ensure your use of AI aligns with your legal and regulatory obligations.
By combining the efficiency of AI with informed legal advice, businesses can benefit from innovation without losing sight of the risks that require professional judgment and experience.
About the authors
Victoria Holland is a Partner and Head of the Corporate & Commercial team at RIAA Barker Gillette. She works with a broad range of clients, including large multinational companies, start-ups, SMEs, partnerships, investors, and entrepreneurs. She has extensive experience providing transactional and commercial contract advice across various industries, such as automotive, biotech, property management and investment, financing, software and technology.
Zarenna Porter is a solicitor in the Corporate and Commercial department. Her work spans a wide range of corporate and commercial matters, including acquisitions and disposals, share buybacks, company reorganisations and the drafting and negotiation of commercial contracts and agreements. She has supported businesses operating across different sectors, tailoring her advice to suit the distinct needs of both sole traders and larger corporate entities.