In order to counteract the decline in profitability, law firms are turning to artificial intelligence (AI) tools such as ChatGPT to reduce costs. Due to a boom in hiring, US law firms have found themselves with excess resources and are looking to legal tech solutions to boost profitability without cutting staff.

Recent advancements in machine learning and AI have led to the creation of new tools that have the potential to automate white-collar work, improving operational efficiencies. One such tool, an AI chatbot called Harvey, has been developed by Magic Circle law firm Allen & Overy to help with contract analysis, due diligence, litigation, and regulatory compliance.

Harvey uses large volumes of data to generate insights and predictions, helping lawyers to provide more cost-effective solutions to clients. The tool is based on OpenAI’s ChatGPT technology and will be given to all 3,500 of Allen & Overy’s lawyers in 43 offices globally.