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In Depth: Legal Professionals See a Case for AI, but It’s Not Ironclad

Published: Aug. 29, 2025  7:33 p.m.  GMT+8
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Artificial intelligence (AI) is quickly finding its way into the legal world — and not just in theory, but as a tool used in everyday practice.

A recent survey by LexisNexis of 404 legal professionals on the Chinese mainland found that 88% already use AI tools in their work, up 20 percentage points from a year earlier.

Among lawyers and trainees, the figure rises to 93%. Corporate counsels, compliance officers and risk managers are close behind, at 86%. Drafting emails, memos and contracts with the help of AI is now routine, as is using it to summarize case files or condense lengthy legal documents.

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  • AI adoption among Chinese legal professionals reached 88% in 2024, with 93% among lawyers and trainees, streamlining tasks like document drafting and case summarization.
  • Market growth is rapid: platforms like Harvey AI in the US attained a $5 billion valuation by 2025; Chinese firms process thousands of suits monthly using AI.
  • Despite efficiency gains, risks include AI hallucinations and court misuse; surveys and experts agree judgment must remain human, with no AI judges foreseen.
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Artificial intelligence (AI) is rapidly transforming the legal profession, moving from theoretical conversations to everyday applications across law firms, corporate legal departments, and courts [para. 1]. A recent LexisNexis survey of 404 Chinese legal professionals revealed that 88% already use AI in their work, a steep increase from the previous year. The figure reaches 93% among lawyers and trainees and 86% among compliance and risk officers. Common uses include drafting emails, memos, contracts, and summarizing or condensing legal documents and case files [para. 2][para. 3].

Judicial systems are experimenting as well. In January 2023, shortly after ChatGPT's release, a Colombian judge admitted using it in a ruling. By late 2024, China's Supreme People’s Court unveiled the Faxin foundation model, the country’s first large legal language model, signaling rapid institutionalization of AI in the Chinese judiciary [para. 4]. Law, unlike medicine or finance, consists of highly structured, public texts—making it especially suited for training and deploying large language models (LLMs). Lawyers are heavy text consumers and researchers, so AI tools immediately enhance productivity [para. 5].

Numerous startups are capitalizing on this trend. Beijing Aiyu Intelligent claims to process over 10,000 lawsuits monthly relying on AI for every stage except court appearances, while in the United States, Harvey AI reached a $5 billion valuation just three years after launch. Industry giants like Thomson Reuters and LexisNexis are heavily investing in AI-related acquisitions and products [para. 6].

Despite the promise, significant risks persist. AI’s tendency to produce plausible errors—so-called “hallucinations”—has led to legal professionals submitting fabricated content to courts, sometimes resulting in sanctions or threats of criminal charges, as seen in the U.S., UK, and Australia [para. 7][para. 13][para. 14]. Nonetheless, AI’s role in early-stage research, statutory retrieval, and translation is growing, with some lawyers switching to faster, AI-powered tools for daily work [para. 10][para. 12]. For cross-border or complex cases, AI helps quickly map foreign legal frameworks, making legal inquiries more focused and efficient [para. 11].

Yet, the pitfalls necessitate caution: every AI-generated output is cross-checked against trusted databases like LexisNexis or Westlaw. Legal professionals stress that human skills—courtroom advocacy, negotiation, and error-spotting—remain irreplaceable, with AI mainly automating repetitive tasks [para. 15][para. 16][para. 17]. For some, automation is reshaping practice areas: for example, contract review demand is dwindling due to AI, while litigation work rises [para. 18].

A broad range of AI legal platforms, from U.S.-based startups to Chinese WeChat mini-programs, now generate tailored legal documents and research. Harvey, with 500+ enterprise clients and $100 million annual recurring revenue by August 2025, and LexisNexis, with global AI products, are prominent examples [para. 22][para. 23][para. 24][para. 25]. Costs for such tools can be substantial, but their time-saving benefits justify the expense for many firms [para. 27][para. 28]. Low-cost, all-purpose AI lawyer platforms remain aspirational; attempts at fully automated AI defenders in court have failed due to legal and regulatory barriers [para. 30].

China’s AI legal enterprises focus on modularizing tasks, with Aiyu Intelligent handling thousands of small-loan cases per month using minimal human oversight [para. 32]. PowerLaw AI targets contract review for small and midsize firms, shifting from lawyer-centric models to delivering immediate answers to businesses [para. 33][para. 34].

While the profession’s AI interest stretches back decades, digitization and searchable databases have been foundational to today’s advances [para. 37][para. 38][para. 39]. Chinese courts are leaders in judicial digitization, with hundreds of millions of rulings published online [para. 40]. Recent years saw the launch of digital assistants and the integration of LLMs into court workflows [para. 42][para. 43]. However, true “AI judges” remain distant: current consensus is that AI should only assist with repetitive or clerical work, leaving core judicial reasoning and discretion to humans, as confirmed by recent international surveys and leading professionals [para. 47][para. 48][para. 49][para. 50]. [para. 43][para. 47][para. 50]

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Who’s Who
Beijing Aiyu Intelligent Technology Co. Ltd.
Beijing Aiyu Intelligent Technology Co. Ltd. (branded as an "AI law firm") processes over 10,000 small-loan lawsuits monthly with AI support, only requiring human lawyers for courtroom appearances. Its CEO, Zhang Tianle, noted they handle this volume with just 10 lawyers. The company exemplifies how specialized automation can achieve significant scale in the legal field.
Thomson Reuters
Thomson Reuters, a major global information giant, is actively investing in AI for legal applications. They began testing AI features in their Westlaw platform in mid-2023 and later acquired CaseText, integrating its capabilities into Westlaw by 2025. This shows their commitment to providing AI-powered tools for legal professionals.
LexisNexis
LexisNexis is a global information giant that is investing heavily in AI for the legal sector. They launched Lexis+AI in October 2023, acquiring companies like Henchman and IDVerse to bolster their offerings. LexisNexis collaborates with Harvey AI and emphasizes their vast, real-time legal database which provides authentic case links for AI-generated answers.
Harvey AI
**Harvey AI** Harvey AI is a US legal AI company founded in 2022. It has achieved a valuation of $5 billion within three years and has raised $800 million through Series E funding. Harvey AI's main clients include law firms, accounting firms, and large corporations that utilize its customized AI legal assistants. The company specializes in document analysis and drafting.
Shanghai Duan and Duan Law Firm
Shanghai Duan and Duan Law Firm's Beijing office, under Deputy Director Ding Jie, actively utilizes AI tools, especially for research into foreign legal systems. This helps them quickly grasp legal frameworks in obscure jurisdictions and saves time and costs compared to relying solely on expensive overseas counsel.
DeepL
The article states that DeepL is a translation software. One legal professional mentioned canceling a paid DeepL subscription in favor of faster, free AI translation tools, suggesting DeepL's service was perceived as slower or costlier than new AI alternatives.
TsingLaw Partners
Lu Tianyu, from Shanghai TsingLaw Partners (天驰君泰律师事务所), emphasizes that "Only a real human can be held responsible for judgment or error. AI has no personhood — it cannot carry the blame." This highlights a significant limitation of AI in legal practice: the inability to assign accountability to non-human entities.
iFinD
iFinD, a Chinese financial database provider, has launched Fazhi, a legal AI tool. It is part of the influx of legal AI tools entering the Chinese market since the launch of ChatGPT.
Thunisoft Co. Ltd.
Thunisoft Co. Ltd. is a Chinese company with a legal AI unit that launched Yodex. This product is part of the influx of legal AI tools entering the market since the advent of ChatGPT.
Alibaba Group Holding Ltd.
Alibaba Group Holding Ltd. is mentioned for its e-commerce platform, Taobao, where individuals can purchase pre-written legal complaints for as little as 10 yuan ($1.37). This highlights the growing accessibility of legal AI tools in China.
OpenAI
OpenAI is an investor in Harvey AI, a legal assistant platform that reached a $5 billion valuation in three years. This investment highlights OpenAI's involvement in the application of artificial intelligence in the legal sector.
Sequoia Capital
Sequoia Capital is an investor in Harvey AI, a U.S. legal AI company founded in 2022. Harvey AI has reached a valuation of $5 billion and has raised $800 million through Series E funding.
Google Ventures
Google Ventures is an investor in Harvey AI, a legal assistant platform. Harvey AI has reached a $5 billion valuation and raised $800 million through Series E funding. Its main clients are law firms, accounting firms, and large corporations.
CaseText
CaseText, acquired by Thomson Reuters in mid-2023, integrates its capabilities into Westlaw by 2025. It is known for its AI-powered legal research and litigation support tools, helping lawyers quickly analyze documents and find relevant precedents.
Henchman
Henchman is a drafting platform acquired by LexisNexis in mid-2024. LexisNexis, a global information giant, is actively investing in AI applications for the legal field. Henchman's acquisition is part of LexisNexis's strategy to enhance its AI offerings, including Lexis+AI, which is now live in multiple regions.
IDVerse
IDVerse is an AI document verification firm that was recently acquired by LexisNexis in early 2025. This acquisition is part of LexisNexis's strategy to expand its AI capabilities in the legal sector, alongside its other AI offerings like Lexis+AI.
Westlaw
**Westlaw** is a legal research platform owned by Thomson Reuters. Since mid-2023, it has been testing AI features and integrated CaseText's capabilities into its platform by 2025. It excels at precedent searches, allowing lawyers to filter results and map relationships among cases, significantly streamlining traditional legal research processes.
Jus Mundi
Jus Mundi is an international arbitration database that offers AI functions. While described as "very expensive" compared to Chinese platforms, it is considered essential for legal firms competing with established Western firms equipped with in-house AI and global databases.
PowerLaw AI
PowerLaw AI, founded by Tu Cunchao, specializes in contract review. The company previously used older AI models but benefited significantly from the advent of Large Language Models (LLMs) like ChatGPT, which dramatically reduced training costs and improved intelligence. PowerLaw AI primarily serves small and midsize companies, offering customized functions such as drafting contracts reflecting past preferences and handling daily queries via chat.
iFlytek Co. Ltd.
iFlytek Co. Ltd. is a Chinese artificial intelligence company. Shanghai courts have partnered with iFlytek to develop tools for preventing wrongful convictions. This collaboration is part of a broader trend in China's legal system to incorporate AI, although earlier AI tools in this context had limited "intelligence."
AI generated, for reference only
What Happened When
1975:
West Publishing launched Westlaw, enabling lawyers to access vast legal archives via computer.
1985:
Peking University built China's first legal database.
Late 1980s:
Northeastern University hosted the first International Conference on Artificial Intelligence and Law (ICAIL).
1993:
Westlaw introduced the WIN search engine, allowing natural-language queries.
1995:
China's first legal website was launched by Peking University.
2013:
Supreme People’s Court of China introduced China Judgments Online platform.
2016:
AlphaGo defeated Lee Se-dol, prompting Chinese courts to rapidly embrace machine learning.
November 2022:
ChatGPT was publicly launched.
January 2023:
A judge in Colombia admitted using ChatGPT to help draft a ruling.
February 2023:
The Federal Trade Commission fined DoNotPay $193,000 for false advertising.
March 2023:
Two American attorneys were fined $5,000 each for submitting briefs containing AI-fabricated precedents.
Mid-2023:
Thomson Reuters began testing AI features in its Westlaw platform.
2023:
Britain’s Law Society issued guidance on risks of AI-generated misinformation.
October 2023:
LexisNexis launched Lexis+AI.
Mid-2024:
LexisNexis acquired drafting platform Henchman.
2024:
Shanghai’s No. 2 Intermediate Court unveiled Xiao Zhi, a digital assistant trained to summarize cases and draft opinions.
Late 2024:
China’s Supreme People’s Court unveiled the Faxin foundation model, its first officially registered legal large language model.
Early 2025:
LexisNexis acquired IDVerse, an AI document verification firm.
June 2025:
Britain’s High Court issued a warning and ruled in a case involving fabricated AI-generated precedents.
August 2025:
Harvey AI had over 500 customers, $100 million annual recurring revenue, and weekly active users four times higher than in August 2024.
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