How GenAI is Transforming Legal Practice

The legal world is on the verge of significant change. As generative AI evolves from quick, pattern-based responses (“System 1” thinking) to models capable of deep reasoning (“System 2” thinking, like OpenAI’s new 01 model), legal professionals are about to experience a revolution.

These advanced AI models will be able to pause, deliberate, and think through complex problems, offering much more than fast but superficial responses. With the rise of custom models tailored for specific industries, including law, the possibilities for innovation are endless.

Let’s explore how these developments might reshape legal writing and practice across key areas.

In legal practice, research is often the most time-consuming and tedious task. System 2 AI models could transform this process by not just finding cases, statutes, and regulations but reasoning through them. Instead of delivering a simple list of cases, these models could analyze the relevance of each case, synthesize key principles, and even predict how certain arguments might hold up in court. Here’s how:

These models could scan legal databases, spot nuanced issues, and draw comparisons between cases that a traditional search engine might miss. Lawyers won’t just get “keyword matches,” but reasoning-based results that provide deeper insights into how a case fits their specific legal question.

Imagine an AI that doesn’t just give you the most cited case but reasons through recent trends in how courts are interpreting specific laws. It could predict which cases are most likely to be persuasive to a particular judge or in a specific jurisdiction, changing the way lawyers craft their arguments.

Legal writing demands precision, clarity, and careful reasoning—qualities these new models will increasingly support. Lawyers won’t just use AI for basic document drafting; they’ll use AI to improve the quality of their legal arguments and writing in ways never before possible.

System 2 models could craft first drafts of legal briefs that are more than just templates filled with data. These models could reason through complex legal arguments, propose counterarguments, and strengthen positions by backing them up with logical, structured reasoning. It’s a game-changer for time-strapped litigators or firms handling high volumes of cases.

Reviewing contracts, agreements, or court filings requires attention to detail and an understanding of legal risk. AI models with custom legal reasoning could analyze documents, flag inconsistencies, and even propose revisions, all while offering explanations for suggested changes based on legal precedent or case law.

Client interaction is often about distilling complex legal matters into understandable advice. System 2 AI models, capable of reasoning in real-time, could help lawyers streamline this process and even improve the quality of the advice given.

These models could assess a client’s case in real time, running simulations to predict possible outcomes based on similar cases or the law’s interpretation. This would enable lawyers to give more tailored, well-reasoned advice with a clear understanding of risks and benefits.

Custom models could transform the way lawyers communicate with clients by generating easy-to-understand explanations of complicated legal concepts or strategies. AI could provide dynamic, scenario-based responses that anticipate client concerns or questions, leading to more productive conversations.

One of the biggest opportunities for System 2 reasoning in law is in litigation. Lawyers could rely on these models to simulate courtroom dynamics, improving preparation and strategy development.

Lawyers could “test” their arguments with an AI model that simulates judge responses or opposing counsel’s objections. This gives litigators a chance to refine their strategies in real time and prepare better responses to potential challenges.

Instead of simply organizing the facts of a case, reasoning models could propose detailed strategies based on an analysis of similar cases, the likely arguments from opposing counsel, and the judge’s known tendencies. Lawyers could receive step-by-step recommendations for building the most persuasive case.

AI’s ability to handle negotiations could be another transformative development. Reasoning models will be able to identify optimal negotiation strategies and anticipate opposing parties’ next moves, which can lead to more favorable outcomes for clients.

Custom AI models could reason through the terms of a contract and suggest negotiation strategies in real-time, based on the specific needs and goals of each party. This goes beyond standard contract drafting tools, offering nuanced advice on where to push for concessions and where to compromise.

Drafting contracts with AI could become more precise, as these models will be able to suggest tailored clauses that fit the unique circumstances of a deal, complete with reasoning that explains why certain terms are included and how they protect the client’s interests.

Lawyers are increasingly responsible for helping clients manage risk and ensure regulatory compliance. System 2 models could take compliance management to the next level by reasoning through potential risks and suggesting proactive legal strategies.

AI models could continuously monitor a company’s operations, scanning for regulatory changes and reasoning through potential risks. This could lead to more effective, real-time adjustments to ensure compliance with the law, particularly in fast-evolving industries like finance or healthcare.

These models could simulate different legal scenarios and predict risks based on historical data and trends. For example, a law firm could use a custom AI model to assess the likelihood of litigation based on a company’s contracts, public statements, or internal policies.

While AI is already used for automation, reasoning models could extend that capacity to more complex tasks that currently require human judgment.

AI could handle routine tasks like document filing, scheduling, and case management, freeing lawyers to focus on more substantive legal work. But with System 2 reasoning, these assistants could also perform higher-level tasks, like identifying potential issues in case law or suggesting key changes in filings.

Reasoning models could go beyond basic searches, identifying the most relevant cases and statutes, and offering deeper analysis of how specific legal rules apply to a client’s situation. This would significantly reduce the time spent on legal research while improving accuracy.