In the wake of the Covid-19 pandemic, the disparity in access to legal counsel became glaringly evident, particularly for small businesses grappling with complex programs like the Paycheck Protection Program (PPP). However, the emergence of artificial intelligence (AI) in legal services is poised to democratize this essential support, offering affordable and accessible legal assistance to businesses of all sizes.
The Imperative for Legal Advice in Business
Legal counsel is crucial in various stages of business, especially during inception. Forming an LLC, deciding the type of corporate entity, and protecting intellectual property are just a few scenarios where legal advice is indispensable. However, the cost and complexity of traditional legal services have often been prohibitive for smaller businesses.
AI’s Role in Enhancing Online Legal Services
Since the late 1990s, online legal services have been helping small businesses with basic legal needs and lawyer referrals. Now, AI is revolutionizing these services, making them more efficient and accessible. AI tools enable users to download necessary forms, access relevant information, and connect with lawyers, regardless of their location.
One such example is Rocket Lawyer’s new tool, Rocket Copilot. This AI-driven platform assists business owners in naming, incorporating, and protecting their businesses. Rocket Lawyer CEO Charley Moore emphasizes that while Rocket Copilot aids in the business formation process, it is not a substitute for professional legal advice. The tool represents a step towards educating business owners, guiding them through preliminary processes, and connecting them with the appropriate legal expertise.
Regulatory Landscape for AI Legal Tools
The rapid evolution of AI in the legal sector has caught the attention of regulators worldwide. Traditionally, legal practice regulations have been stringent, with strict standards for lawyers. However, states like Arizona and Utah are pioneering in recognizing alternative business structures (ABS) that blend legal and non-legal services, as evidenced by Utah’s “regulatory sandbox” initiative.
SimpleCitizen, a Utah-based company, is an example of how ABS is reshaping the legal landscape. They offer online immigration services, combining AI efficiency with lawyer oversight, thereby reducing costs and streamlining processes for clients.
The Future of AI in Legal Services
The integration of AI in legal services is an irreversible trend, with lawyers increasingly adopting AI tools for document drafting and legal research. This advancement is expected to enhance the capabilities of platforms like Rocket Lawyer and SimpleCitizen, making legal services more affordable and accessible.
However, despite these technological strides, the importance of direct interaction with legal professionals remains paramount. The nuances of legal matters often require personalized counsel, and thorough background checks of lawyers are still recommended. As businesses navigate the complexities of legal frameworks, the old adage “An ounce of prevention is worth a pound of cure” holds true, emphasizing the value of expert legal advice in avoiding future disputes and litigation.
In summary, while AI is reshaping the legal services landscape, offering cost-effective and accessible solutions, it complements rather than replaces the need for professional legal advice. For small businesses and solopreneurs, this development represents a significant step towards leveling the playing field in legal accessibility.
