AI-Powered Lawyering: AI Reasoning Models, Retrieval Augmented Generation, and the Future of Legal Practice by Daniel Schwarcz, Sam Manning, Patrick Barry, David R. Cleveland, J.J. Prescott, Beverly Rich :: SSRN

Generative AI is set to transform the legal profession, but its full impact remains uncertain. While AI models like GPT-4 improve the efficiency with which legal work can be completed, they can at times make up cases and “hallucinate” facts, thereby undermining legal judgment, particularly in complex tasks handled by skilled lawyers. This article examines two emerging AI innovations that may mitigate these lingering issues: Retrieval Augmented Generation (RAG), which grounds AI-powered analysis in legal sources, and AI reasoning models, which structure complex reasoning before generating output. We conducted the first randomized controlled trial assessing these technologies, assigning upper-level law students to complete six legal tasks using a RAG-powered legal AI tool (Vincent AI), an AI reasoning model (OpenAI’s o1-preview), or no AI. We find that both AI tools significantly enhanced legal work quality, a marked contrast with previous research examining older large language models l

Generative AI is set to transform the legal profession, but its full impact remains uncertain. While AI models like GPT-4 improve the efficiency with which legal work can be completed, they can at times make up cases and “hallucinate” facts, thereby undermining legal judgment, particularly in complex tasks handled by skilled lawyers. This article examines two emerging AI innovations that may mitigate these lingering issues: Retrieval Augmented Generation (RAG), which grounds AI-powered analysis in legal sources, and AI reasoning models, which structure complex reasoning before generating outpu