How to actually save money on legal fees with AI

Using AI for legal work

As lawyers we have to acknowledge that legal services can be a significant cost for an early-stage business. It is hardly surprising that many of our clients are turning to AI for quick answers and first drafts of documents. By creating this best practice guide, we want to give our clients practical recommendations for using this emerging technology. This is based on our direct experience working with AI and observing how our clients use it. We will aim to answer the most frequently asked questions below.

Will I save costs if I produce my own drafts with AI and then have my lawyer review the outputs?

This is a frequent assumption. The answer is sometimes, but in our experience this is rarely the case. It really depends on:

- How well you know the **subject** you are asking about; - Whether you are able to be **precise** in your prompt; - How well **configured** your AI solution is; and - How much **context** your AI model has about your business or circumstances.

All of these factors make a material difference to the quality of output you receive.

Does each model behave the same for each user?

This is the most surprising factor when using AI models for legal work. Advising as a solicitor carries professional obligations and regulatory protections that AI providers do not offer. AI companies are not licensed as firms and may have configured their models to hold back from giving answers with absolute certainty.

For example, if you see caveats in your output such as ".. you should check this with your lawyer" or "Your lawyer should confirm this position." then you are likely experiencing this feature.

In our experience, the model outputs behave with more certainty when used by practitioners where it is clear the output is being used to inform legal advice to be delivered by a practitioner rather than as advice. In other words, lawyers may receive more clear cut answers when using AI models than the average user. This may also depend on the quality of the model you are using and your subscription level.

Are frontier models just as capable as experienced lawyers?

Frontier models have greatly improved in a short space of time. However their judgment and selection are only as good as the context. In many cases AI models overproduce content or draft excessively long contracts.

We have seen examples of AI models producing drafts and questions for the user's lawyer to confirm stretching to over 100 pages for what should have been a 20 page set of terms and conditions.

Is it safe to put my data into an AI model?

Many consumer-facing models enable model training on user submissions. So consider how the model may treat data you upload (such as personal information or confidential data) before uploading it. Such information may also be processed outside of your jurisdiction. It is also unclear whether legal privilege (professional secrecy) applies to questions or materials prepared by an AI model as opposed to a lawyer.

How can I use AI for legal work to save money if I am not a lawyer?

We suggest these general recommendations:

- Provide as much context and background information as possible; - Don't expect categorical answers without an actual lawyer's input, particularly decisions on a regulatory position; - Try to research the area you are working in before asking the key prompt to fully understand the legal context; - Use AI to prepare instructions but not necessarily the full suite of documents; - Make sure you specify your jurisdiction, it is common for UK users to receive advice on US legal positions unintentionally;

However this comes with the caveat that AI model outputs are not regulated legal advice and you may have very limited recourse to the provider if your advice turns out to be incorrect. Hythe Legal by contrast holds professional indemnity insurance and is accountable for advice given.

These guidelines might help if you really do not have any budget for legal support. However in our experience the most cost-effective route is by instructing a lawyer who can leverage AI rather than using AI first and then instructing a lawyer.

At Hythe Legal we routinely evaluate the best frontier models for performance in areas such as research, contract drafting and general advice. Our experience is that different models have strengths and weaknesses in different areas and there is no single model that is best at every task.

If you do need support with an AI-assisted draft or would like further advice, consider booking a fixed fee consultation to review your draft, or an initial call to discuss your requirements in more detail.