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Why ChatGPT is a lousy lawyer
Rebecca McAllum is the principal lawyer and founder of Jan Juc Legal. She says people often feel fearful or uncertain about seeking legal advice – and this includes business owners. But proactive prevention – addressing legal needs before they become insurmountable challenges – is the best approach, she says.
Here, McAllum shares five reasons why outsourcing your legal issues to AI is not worth the risk. After all, platforms such as ChatGPT have no credentials and don’t care how much legal trouble it puts you in…
With all due respect to ChatGPT, it has not been to – let alone graduated – law school. While generative AI platforms can be an incredible resource for business owners to rely on, there are some real risks when it comes to the legal stuff. In fact, while it might be tempting to save money by getting AI to create “simple” legal documents (such as terms and conditions, certain releases, and non-disclosure agreements), it’s worth thinking about the risks.
It is often incorrect, inaccurate and not reliable
While platforms such as ChatGPT can produce lines and lines of big legal words and concepts, generative AI cannot yet accurately apply the relevant laws in your geographical jurisdiction to your context. A lot of what these sites suggest is often legally wrong, and they have the sneaky habit of making things up, such as case names and citations. Be careful of the hallucinations!
It is legally, financially and reputationally risky
If you rely on legal wording created by AI and something goes wrong with a customer or another party, you might find yourself legally liable. It’s also known to infringe upon the copyright of other users, and so you could find yourself also in breach of others’ intellectual property rights. These sorts of issues can cause financial repercussions and – sorry to say it – impact your brand’s reputation. It’s not a good look when you’re caught out.
The law is about tailored, specific legal advice to your situation
The suggestions are often simplistic (if not simply wrong) because AI does not know your industry and your industry’s background. Good legal advice is in the analysis and application of laws that may not ultimately be used or seen in final documents but which lawyers spend a lot of time considering and carefully cross-checking behind the scenes.
Privacy. Privacy. Privacy
By sharing all your business information with platforms such as ChatGPT to help you with your business legals, you may be inadvertently disclosing information that you have agreed to keep confidential. And who knows who it will go and share that with!
AI can’t negotiate on your behalf in disputes
If you’re a seasoned business owner, you know that there are times when negotiation is required to protect your interests and limit your own risk. You need a human lawyer, not a robot, to do this on your behalf (unless, you’re negotiating with another robot – but that’s a different and perhaps more interesting story).
This information is for informative purposes only and is not intended to be or constitute legal advice. And just as you should not rely on generative AI to obtain your legal advice, we recommend you consult a qualified legal professional about your business legals to receive specific legal advice.
If you are just starting out and want to understand the essential laws every new business owner should know, join Davina Borrow-Jones, Solicitor and Director at the Mumpreneur Lawyer, in her video masterclass: Understanding the Law when starting your own business.
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