AI Tools for Lawyers: How to Pick the Right One in 2025

WRITTEN BY DANIEL RIZZI, STARTUP LAWYER AT DIMINNO RIZZI IN ASSOCIATION

If you’re reading this, chances are you’re either an independent lawyer or part of a small law firm like me, trying to navigate the wild world of AI tools for lawyers. Well, you’ve come to the right place!

Remember when AI in law seemed like a far-off future? Well, in just one year, from 2023 to 2024, AI usage among lawyers skyrocketed from 23% to 34%. But wait, it gets better – or more mind-blowing, depending on how you look at it.

A whopping 90% of General Counsels and 70% of attorneys in large firms are already using AI, with 62% using it for legal research. And it’s not just the big players – 79% of North American legal professionals are now incorporating AI into their daily grind, up from a mere 19% the year before. Generative AI is being adopted for tasks like legal writing, document generation, and research, offering unprecedented efficiency and accuracy.

So how do you find AI tools that can genuinely enhance your legal practice and give you an edge in our highly competitive field?

I’ve done the homework so you don’t have to. I’ve put together this guide on AI tools for lawyers. We’re going to cut through the hype and look at how AI tools can work for lawyers like us.

AI Landscape in Legal Tech

Before you start shopping for AI tools, you need to take a step back and understand what you’re dealing with. AI in legal tech isn’t just one thing – it’s a whole ecosystem of technologies designed to make our lives easier and our work more efficient.

Natural Language Processing (NLP)

When we talk about AI in legal tech, we’re really talking about a few key technologies. First up is Natural Language Processing (NLP). Think of NLP as the AI equivalent of a polyglot paralegal who can read through thousands of documents in multiple languages at superhuman speed. It’s the tech that allows computers to understand, interpret, and generate human language.

Machine Learning (ML)

Then we have Machine Learning (ML). ML algorithms learn from data and improve their performance over time without being explicitly programmed. In legal contexts, ML can be used for predictive analytics, document classification, and even predicting case outcomes.

Advanced Data Analytics

While not strictly AI, advanced data analytics often go hand-in-hand with AI tools. These can help you spot trends, manage your practice more efficiently, and make data-driven decisions.

Expert Systems

Lastly, we have Expert Systems. You can think of them as a virtual senior partner who you can call 24/7. They emulate the decision-making ability of a human expert and can be used for tasks like contract analysis or regulatory compliance checking.

Practical Applications of AI tools for Legal Professionals

Now, let’s talk about how these technologies are actually being used in the legal world.

Legal Research and Document Analysis

AI-powered legal research tools can sift through vast databases of case law, statutes, and legal documents to find relevant information in a fraction of the time it would take a human. Generative AI tools also play a crucial role in generating various legal documents and conducting research efficiently, though ethical considerations and oversight are essential when using such technologies.

Document Review

AI can analyze large volumes of documents for specific clauses, potential risks, or inconsistencies. This is particularly useful in M&A transactions or litigation. With AI you can review thousands of documents in hours rather than weeks.

Contract Management

Contract analysis and management is another area where AI is very strong. AI tools can review contracts for standard clauses, flag potential issues, and even assist in drafting. Currently AI can’t replace lawyers for this but can be extremely helpful for junior lawyers and act as a second pair of eyes for more experienced lawyers.

Predictive Analytics

Predictive analytics is where things get really interesting though. By analyzing historical data, AI can predict the likelihood of various case outcomes, helping lawyers make more informed decisions. It’s not quite a crystal ball (at least not yet), but it’s getting there.

Practice Management

Even in practice management, AI can accomplish a lot of work at a fraction of the cost of a human employee. AI-powered tools can help with everything from billing and time tracking to client intake and case management.

Legal Writing and Drafting

And let’s not forget about legal writing and drafting. While we’re not quite at the point where AI can write a compelling closing argument, there are AI tools that can assist with drafting routine documents and proofreading. AI can be extremely useful where a lawyer does not have access to a pre-existing precedent for a particular type of agreement or clause.

Legal AI Tools: Key Features and Benefits

In essence, AI tools are not just about doing things faster; they’re about doing things better. These tools not only enhance efficiency but also ensure that lawyers and legal professionals can provide more accurate and reliable advice to their clients.

Assessing Your Needs: How to Pick the Right AI Tool

Before you start test-driving AI-powered tools, you need to know what exactly you’re looking for. Take a moment to think about your top pain points. Be honest with yourself. This isn’t the time for ego. We all have areas where we could use a little help, and that’s exactly what AI tools for lawyers are for.

Identify Time-Intensive Tasks

First things first, try to understand what are the tasks that are currently eating up most of your time? What are the areas where you feel you could be more efficient? Are you drowning in document review for due diligence, or perhaps you’re spending hours on legal research for a single brief? You might be struggling to keep up with billing and time tracking, or feeling overwhelmed by contract management. Or maybe you’re just tired of wasting time on routine document drafting. Identifying these tasks can help you select the right legal AI tool to address these needs effectively.

Consider Practice Area Requirements

Your practice area will significantly influence the type of AI tools that will be most beneficial to you. If you’re in corporate law like me, you might be more interested in tools for due diligence, contract analysis, and M&A support. Litigators, on the other hand, might prioritize tools for legal research, e-discovery, and predictive analytics. Estate planning lawyers might benefit most from document automation tools, while criminal defense attorneys might look for tools that assist with case law research and sentencing predictions.

Focus on Client Service Enhancement

At the end of the day, we’re in the business of serving our clients. How could AI tools help you provide better service? Could they help you work more efficiently, potentially reducing costs for your clients? Are there AI-powered client communication tools that could improve your responsiveness? Could predictive analytics help you provide more accurate risk assessments to your clients?

Evaluate Technical Readiness

Be honest about your tech comfort level and that of your legal team. Some AI tools are more user-friendly than others. If you’re not particularly tech-savvy, you might want to prioritize tools with good hands on customer support. There’s no shame in admitting you’re not a tech wizard. I’d rather see you pick a tool you’ll actually use than waste your time and money on an AI tool that’ll gather dust because it’s too complicated.

Analyze Cost-Benefit Ratio

Last, but not least – money. AI tools can range from surprisingly affordable to astronomically expensive. As an independent lawyer or small firm, you need to think carefully about your budget. Remember, though, that the right AI tool can potentially pay for itself many many times over in terms of time saved and increased efficiency. So treat it as an investment in your practice, not as an expense.

Key Features to Look for in AI Tools

Now that you have a better understanding of what you’re looking for, let’s talk about what to look for in AI tools. Think of this as your shopping list – keep these features in mind as you evaluate different options.

Accuracy and Reliability

First and foremost, accuracy and reliability are non-negotiable. An AI tool that gives inaccurate results is worse than useless. It is potentially dangerous. Look for legal AI tools that have been extensively tested and have a track record of reliability.

Integration Capabilities

In an ideal world, your AI tool should play nice with your existing software. Look for tools that can integrate with your current software, document management system, or other key tools you use daily.

Customization Options

Every law practice is unique, and the best vendors recognize this. Look for AI tools that allow some level of customization. Can you train the AI on your own documents? Can you adjust its parameters to better fit your specific needs?

User-Friendly Interface

A powerful AI tool is useless if you can’t figure out how to use it. Look for tools with intuitive interfaces and clear documentation. Bonus points if they offer good training resources or onboarding support.

Security Measures

As lawyers, we’re bound by strict ethical rules about client confidentiality. Any AI tool you use needs to have robust security measures in place, including encryption, secure cloud storage, and compliance with relevant data protection regulations. Most lawyers will need to make sure that any data related to their practice is stored in the jurisdiction they practice in.

Scalability

Think about your future needs. If your practice grows, will this AI tool be able to grow with you? Look for tools that offer different tiers or can easily scale up as your needs change.

Regular Updates and Support

Technology evolves rapidly, and AI is no exception. Look for vendors who regularly update their tools and provide reliable customer support.

Transparency and Explainability

Lastly, and this is a big one, especially in the legal field – look for transparency and explainability. You should be able to understand and explain how the AI tool arrived at its conclusions. Look for tools that provide clear explanations of their processes and allow you to trace their decision-making. After all, if you can’t explain how you reached a conclusion to a judge or a client, it’s not much use to you, is it?

Checklist to Evaluate AI tools for Lawyers

David AI – One of the Best AI Tools for Lawyers

One AI tool caught my eye lately – David AI by 2nd Chair. What’s interesting about David AI is how it’s tailored for individual lawyers and small firms like us. It’s not trying to be a one-size-fits-all solution, which is refreshing in the AI space. Instead, it focuses on what we actually need – a tool that can handle our own client files, notes, and emails securely.

One of the standout features of David AI is its ability to provide hyperlinked annotations. Imagine asking a question about a case, and not only getting an answer but also precise links to where that information came from in your documents. It’s quick and easy.

But what really caught my attention is how David AI addresses some of the big concerns we have about using AI in legal work. We all know the risks of AI hallucinations or getting information that we can’t verify. David AI solves this by providing sentence-level citations. This means you can quickly check the AI’s work against your actual documents, which is crucial for maintaining accuracy and trust in our field.

Another thing that’s worth noting is the focus on compliance. As lawyers, we’re bound by some pretty strict rules, and not all AI tools are cut out for our regulatory environment. Chat GPT just won’t fly here. David AI seems to have been built with these compliance issues in mind, which is a big plus for those of us who want to innovate without risking our licenses.

Now, I’ve heard from some colleagues from the US who’ve been using it, and the feedback has been pretty good. They’re talking about significant time savings, especially on those non-billable tasks that we all know eat up way too much of our day.

But here’s the thing – AI tools, no matter how good, are not magic wands. They’re tools, and like any tool, their effectiveness depends on how we use them. David AI, or any AI for that matter, isn’t going to replace our legal expertise or judgment. It’s there to augment our skills, to handle the grunt work so we can focus on the high-level thinking that our clients really pay us for.

What I find particularly interesting about David AI is its potential for leveling the playing field. As independent lawyers or small firms, we often don’t have the resources of big law firms. But AI tools like this can give us capabilities that were once only available to the big players. These AI tools are not replacing human expertise. They’re enhancing it and making independent lawyers and small firms more efficient and competitive.

Of course, as with any new tech, it’s important to approach it with a critical eye. If you’re considering David AI or any similar tool, test it out first. See how it fits into your workflow, how it handles your specific types of cases, and most importantly, how comfortable you feel using it.

The goal of using AI in our practice isn’t just to be more efficient. It’s to be better lawyers for our clients. If an AI tool can help us do that by freeing up time for more substantive work, then it’s definitely worth considering.

Other AI Tools for Lawyers Worth Considering

This isn’t an exhaustive list, and new AI tools are popping up all the time. But these should give you a good starting point. Let’s take a look at three AI tools for lawyers that are also worth considering.

CoCounsel by Thomson Reuters

Thomson Reuters, a name familiar to most of us in the legal world, has created CoCounsel. This AI tool is designed as a comprehensive AI assistant for legal professionals, integrating with other Thomson Reuters products like Westlaw and Practical Law.

CoCounsel offers a range of features including legal research assistance, document review and summarization, contract analysis, deposition preparation, and timeline creation. It uses NLP (Natural Language Processing) to understand and respond to complex legal queries, providing answers backed by relevant case law and statutes.

One of CoCounsel’s strengths is its integration with existing Thomson Reuters products, which could potentially streamline workflows for firms already using these tools. However, as with any AI tool, it’s important to approach its outputs with a critical eye and use it as a supplement to, rather than a replacement for, legal expertise.

Bloomberg Law AI Tools

Bloomberg Law, known for its legal research platform, has incorporated AI tools to enhance its offerings. The platform now includes a Smart Code feature that uses machine learning to help identify relevant cases, statutes, and regulations more quickly.

These AI enhancements are designed to make the legal research process more efficient, potentially saving time on routine research tasks. However, as with any research tool, you need to verify findings and use professional judgment in applying the information to specific legal situations.

Clio Duo

For those already using Clio’s practice management software, Clio Duo offers an integrated AI solution. This tool focuses on automating routine tasks and assisting with day prioritization, all within the context of legal practice management.

Clio Duo’s integration with existing practice management features could be particularly useful for small firms or solo practitioners looking to streamline their operations. However, its effectiveness may depend largely on how well it integrates with individual workflows and practice areas.

Remember, no single AI tool will be perfect for every lawyer. The key is to find the one that best fits your specific needs, budget, and practice area.

Spellbook

Spellbook stands out as a specialized contract assistant that seamlessly integrates with Microsoft Word. This integration is perhaps Spellbook’s most distinctive feature, allowing lawyers to harness AI capabilities without leaving their familiar document editor.

At its core, Spellbook is designed to streamline the often time-consuming process of contract review and drafting. It can quickly analyze entire documents, offering suggestions for improvements and flagging potential risks or non-standard terms. It can also generate new clauses or even entire sections based on the context of the agreement. This feature can save a lot of time during the drafting process.

One of Spellbook’s more intriguing capabilities is its automatic redlining function. By following user instructions, it can create precise redlines, potentially saving lawyers significant time during contract negotiations. This feature, combined with its ability to suggest common negotiation points, positions Spellbook as a valuable ally in the back-and-forth of contract discussions.

Ethical Considerations and Best Practices

As lawyers, we have a duty to use technology responsibly and ethically. When it comes to AI tools, there are a few key things to keep in mind.

First and foremost, understand the tool’s limitations. Artificial intelligence is powerful, but it’s not infallible. Make sure you understand what the tool can and can’t do. Never rely blindly on generative AI or any AI-generated results without human review. You always need to double-check AI-generated outputs.

Maintaining confidentiality is critical. Ensure that any AI tool you use has robust security measures to protect client data. Be cautious about inputting sensitive information into legal AI tools, especially if they’re cloud-based. Remember, attorney-client privilege doesn’t extend to third-party vendors. These tools can significantly enhance the efficiency and collaboration of legal teams, but it is essential to ensure they are secure and reliable.

In some cases, it may be appropriate or even required to disclose your use of AI tools. Stay informed about the ethical guidelines in your jurisdiction. It’s better to be upfront than to face questions later.

As tech evolves, we have a professional responsibility to stay competent. Make an effort to understand how your legal AI tools work, not just how to use them.

The Future of AI in Law: What’s Next?

Let’s take a quick look at what the future might hold for AI in legal industry. Remember, the legal tech landscape is evolving rapidly, so staying informed about emerging trends is crucial, in my opinion.

We’re likely to see even more automation of routine legal tasks. This could free up law firms to focus on higher-value work that requires human judgment and creativity. Imagine a world where all the tedious, time-consuming tasks are handled by AI, leaving you free to focus on the complex, intellectually stimulating parts of law. Sounds pretty good, right?

Generative AI tools are evolving and getting better. We might soon see AI tools that can understand legal documents and generate legal language with near-human proficiency.

While AI won’t replace judges or lawyers, we might see more tools that assist in decision-making by providing data-driven insights and predictions.

As AI becomes more prevalent in law, there will likely be an increased focus on making AI systems more transparent and ethically sound. We’ll need to grapple with questions of bias in AI systems and how to ensure fairness and justice in an increasingly automated legal world.

Conclusion: Embracing AI in the Legal Industry

It’s an exciting time to be a lawyer, isn’t it? We’re at the forefront of a tech revolution that’s transforming the legal profession.

But AI isn’t here to replace us. It’s here to make us better lawyers. By automating routine tasks and providing data-driven insights, AI tools free us up to do what we do best – apply our human judgment, creativity, and empathy to solve complex legal problems.

As independent lawyers and small firms, we have a unique opportunity. We can be nimble, adapting to new tech faster than our bigger counterparts. We can use AI tools to level the playing field, providing our clients with the kind of service that used to be the exclusive domain of big law firms.

So, I encourage you to embrace this AI revolution. Be curious, be open-minded, but also be critical. Ask questions, demand transparency from vendors, and always put your professional judgment first.

At the end of the day, we’re not just lawyers – we’re problem solvers, advisors, and advocates for our clients. Legal AI tools are just tools to help us do our jobs better. They’re not meant to replace our expertise, but to enhance it.

If you ever want to geek out about the latest AI tools for lawyers or swap stories about implementing AI in your legal practice, message me on LinkedIn.

Catch you on the flip side!

FAQ: AI Tools for Lawyers

About the Author

Daniel Rizzi is a Toronto based business lawyer that helps founders in software, Crypto, Fintech, BioTech, and the AI space navigate the legal landscape and make better decisions. From incorporations, shareholder agreements, terms and conditions, privacy policies, to fundraising and M&A, Daniel helps the underdogs become titans.