Large Language Law

Legal Update: AI and the Law

Artificial Intelligence (AI) has seen rapid global growth over the past five years due to its accessibility, efficiency, and broad capabilities. Integrated into most digital platforms, AI now plays a significant role in everyday technology. While legislation is still catching up, the Personal Data Protection Act No. 11 of 2022 (PDP Act) guides how AI interacts with personal data.

This update examines two key issues:

• Who owns data generated by AI?
• How AI is regulated in legal practice.

Relevant Definitions (from the PDP Act):

• Data Controller: Entity that determines how and why personal data is processed.
• Data Processor: Entity that processes data on behalf of a controller under instruction.
• Personal Data: Any recorded information identifying an individual (e.g. fingerprints, employment history, correspondence).
• Processing: Any operation on data—such as collecting, storing, analysing, or erasing it.

AI in Legal Practice

AI refers to technology that performs tasks requiring human intelligence—such as language processing, legal research, and decision-making. In law firms, AI improves productivity but brings complexity and limitations due to its reliance on data, not interpretation.

Benefits of AI in Law Firms:

1. Efficiency: Automates legal research and admin work, saving time.
2. Cost-Effectiveness: Reduces the need for staff in routine roles.
3. Client Service: Enables tailored, data-driven client solutions.
4. Competitive Edge: Enhances legal insights and turnaround time.

Drawbacks and Risks:

1. Reduced Human Judgement: Lacks empathy and nuanced interpretation.
2. Privacy Risks: AI processes sensitive data, raising security concerns.
3. Job Displacement: Reduces demand for junior legal roles.
4. Data Quality Issues: Outdated or biased datasets may affect accuracy.

Ownership of AI-Generated Content

Determining ownership of AI-generated legal content is complex. Because AI compiles information from various sources, intellectual property and liability questions arise—especially when incorrect advice causes harm.

Generally, the responsibility lies with the law firm that delivers AI-generated advice. If the firm tailors the AI output for specific client use, it may also claim ownership of that final product.

Data Handling by AI

AI tools collect and process data, often acting as data processors, while the organisation deploying them is the data controller. Tools like ChatGPT use user interactions to train models and improve future responses—relying on shared human input for learning.

Conclusion

AI is a powerful aid but not a flawless one. It should enhance, not replace, human expertise in law. While its adoption in legal practice is inevitable, careful integration and regulation are vital to prevent over-reliance and preserve professional judgment.

Source: Clyde & Co