In the coming days and weeks, we at Lagaviti will reflect on the road ahead in the world of artificial intelligence and law, examine the tremendous opportunities that lie in applying AI within a discipline that demands a high degree of precision and reliability, and explore the risks, the challenges that must be addressed, and what needs to happen for the technology to deliver better, more reliable, and more efficient legal work.

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Artificial Intelligence in the World of Law

 

It is fair to say that the legal world is at a turning point. Artificial intelligence solutions are beginning to make their entrance, as they are in other sectors of society, and the opportunities are immense.

 

Traditionally, lawyers have had to devote a significant amount of time to foundational and preparatory work. With the assistance of artificial intelligence, it is now possible to identify, review, and assess vast quantities of information—including case materials, sources of law, and other information used in legal practice—in a fraction of the time previously required.

 

Artificial intelligence can also be used to analyze factual circumstances and a wide range of legal issues, producing legal reasoning and draft solutions almost instantaneously. AI technology can furthermore provide an important counterbalance to the limitations of the human mind, such as imperfect memory, inaccuracy, and bias. Well-trained AI models have access to enormous amounts of information and can be highly precise, while at the same time being capable of critically evaluating their own reasoning and that of others.

 

On the other hand, these significant advantages of artificial intelligence also create the risk that lawyers may come to rely too heavily and uncritically on the technology, as demonstrated by examples such as cases in the United States where attorneys have incorrectly cited judicial precedents fabricated by AI systems.
(See, for example: Reuters, AI hallucinations in court.)

 

Given these potential risks, the easiest response for lawyers might be to bury their heads in the sand and hope that artificial intelligence will fade away. That outcome, however, is highly unlikely. It is far more probable that lawyers who fail to make use of artificial intelligence in their work will become obsolete—not only due to inefficiency, but also because their ability to cast a wide net in search of relevant information will be significantly more limited, and conducting deep legal analysis will become increasingly difficult.

 

That said, it is important to emphasize that the role of the lawyer will remain just as vital as ever. Lawyers must frame the relevant assumptions correctly, scrutinize the arguments and sources presented and relied upon by artificial intelligence, guide the AI forward with comments and critical questions, and apply their own judgment in reaching final conclusions. Ultimately, it is - and will continue to be - the lawyer who must answer for and bear responsibility for the work carried out with the assistance of artificial intelligence.

 

Reykjavík, 10 July 2025