Title: How AI Large Language Models Are Impacting Law School as an Investment
Artificial intelligence, specifically the latest version of ChatGPT, has created buzz as a potential career disruptor across various industries. The legal profession is also facing the impact, with ChatGPT now capable of passing the bar exam. However, while some anxiety is warranted, the notion of AI entirely replacing lawyers is still far from reality.
Lawyers often encounter emotional scenarios with clients, witnessing tears even in seemingly unemotional cases like business disputes. Navigating such situations, where a distressed millionaire seeks your guidance amidst adversarial tactics from opposing counsel, is a challenge that AI struggles to match.
Nevertheless, AI, particularly large language models like ChatGPT, will undoubtedly replace certain aspects of legal work. Already, AI is being utilized in transactional drafting, where AI-generated first drafts arguably outperform those of inexperienced associates. Additionally, AI has been used for years in document review, an area traditionally assigned to junior associates. As AI advances further, it may even evoke an unexpected fondness from seasoned lawyers when it provides well-crafted written discovery requests.
The impact of increasingly powerful AI technology on legal professionals will vary based on their position within the legal hierarchy. Older lawyers, not as comfortable or proficient with new technologies, might face challenges in adapting. Conversely, younger attorneys, despite being tech-savvy, could be entirely displaced. However, tasks that cannot be easily outsourced to AI, such as client management, cogent oral arguments in court, and business development, remain in the hands of established lawyers who hoard these more desirable responsibilities. Therefore, it is unlikely that this dynamic will change anytime soon.
According to the Bureau of Labor Statistics, a modest increase in attorney positions is expected by 2030. However, most of these positions may not result from organic growth in the legal industry but rather due to retirements among older lawyers and disillusionment leading to attrition. A partner’s retirement does not necessarily result in an open position for a recent law school graduate. Furthermore, the Bureau of Labor Statistics might not have accounted for the rapid advancements seen in large language models, which could automate tasks traditionally assigned to new law graduates.
The demand for lawyers decreased in 2022, and as advanced AI technology continues to be adopted, this trend may worsen. Companies may choose to rely on in-house large language models instead of paying high fees for outside counsel, further reducing the need for traditional legal services.
Entering the legal profession has always been a high-risk, high-reward situation. Individuals who have already pursued undergraduate degrees in history or political science often turn to law school to enhance their income potential. However, many law school graduates fail to pass the bar exam or struggle to secure decent job opportunities. Even for those who succeed, some may discover a deep disdain for the work of a lawyer.
While ChatGPT and similar AI technologies will not fundamentally change the dynamics of the legal profession, they are likely to amplify existing trends. Rather than demolishing the field, powerful AI will further erode certain areas of legal practice.
For those considering law school amidst the increasing adoption of legal AI, caution is advised. It is crucial to approach the decision with serious consideration, avoid accumulating excessive debt whenever possible, and be prepared for the challenges and uncertainty that come with the profession. Pursue law school if the genuine desire to practice law exists; otherwise, it might be wise to explore alternative career paths.
