Demystifying AI: A lawyer’s guide to common AI terms

The legal profession is experiencing a technological revolution, and artificial intelligence sits at its heart. Whether you're just beginning to explore AI tools or you're already integrating them into your practice, understanding the language of AI can help you make more informed decisions about the technology that's reshaping our industry.

We know that every lawyer is at a different place in their journey of exploring and adopting AI. That's why we've put together this straightforward guide to the most common AI terms you'll encounter – no technical jargon, just clear explanations that relate to your legal practice.

As legal professionals, we have unique responsibilities when it comes to AI adoption. Ethical and effective use isn't just about leveraging technology for efficiency – it's about maintaining our professional obligations to clients while harnessing AI's potential responsibly. Understanding these fundamental concepts helps ensure you can evaluate and use AI tools in ways that enhance your practice whilst upholding the standards our profession demands.

The building blocks

Artificial Intelligence (AI) is the broad term for computer systems that can perform tasks typically requiring human intelligence. In legal practice, this might mean analysing contracts, researching case law, or drafting documents.

Machine Learning is a subset of AI where computers learn patterns from data without being explicitly programmed for every scenario. Think of it as teaching a computer to recognise legal concepts by showing it thousands of examples, rather than programming every possible rule.

Natural Language Processing (NLP) is the branch of AI that helps computers understand, interpret, and generate human language in a meaningful way. Rather than just matching keywords, NLP allows AI to grasp context, nuance, and intent. This is what enables you to ask LawY a legal question in plain English and receive a coherent, contextual response that understands the legal concepts you're discussing.

The models that power AI

Large Language Models (LLMs) are AI systems trained on vast amounts of text to understand and generate human-like language. These models power many of the AI tools lawyers use today, including legal research assistants and document drafting tools.

Training Data refers to the information used to teach an AI system. The quality and scope of training data significantly impacts an AI's performance. LawY uses a unique blend of existing large language models combined with human-verified answers from our ever-expanding proprietary legal knowledge base, ensuring both breadth and accuracy in responses.

Key AI capabilities

Generative AI creates new content based on prompts, whether that's drafting a letter, summarising a case, or generating research memos. This is different from traditional search tools that simply retrieve existing information.

Contextual understanding means the AI can grasp the broader meaning and circumstances surrounding your question, not just match keywords. When you ask about "consideration" in contract law, it understands you're not asking about being thoughtful.

Hallucination occurs when AI generates information that seems plausible but is actually incorrect or fabricated. This is why verification and human oversight remain crucial in legal AI applications.

Enhancing AI performance

Prompt is the question, instruction, or input you give to an AI system. In legal AI, this might be "Draft a letter requesting document disclosure" or "Summarise the key holdings in Smith v Jones." The quality and specificity of your prompt directly affects the usefulness of the AI's response.

Prompt engineering is the art of crafting effective questions or instructions for AI systems. A well-structured prompt that includes relevant context and specific requirements will yield much better results than a vague query.

Retrieval-Augmented Generation (RAG) combines AI's generative capabilities with access to specific databases or documents. This allows AI to provide answers based on the most current and relevant information, rather than relying solely on its training data. LawY uses RAG with our own proprietary legal knowledge base, enabling it to draw from human-verified legal answers and to provide more accurate and reliable responses.

Ensuring reliability

Human-in-the-Loop refers to systems where humans remain involved in the AI process, reviewing and validating outputs. LawY's verification feature is a perfect example – experienced lawyers review AI-generated answers to ensure accuracy.

Bias in AI occurs when systems produce unfair or prejudiced results, often reflecting biases present in training data. Responsible AI development includes measures to identify and mitigate these biases.

Transparency means understanding how an AI system reaches its conclusions. In legal contexts, this includes providing citations and sources so you can verify the AI's reasoning.

LawY: AI purpose-built for Lawyers

Understanding AI terms is one thing, but seeing them in action is another. LawY demonstrates how these concepts come together in a platform specifically designed for legal professionals.

LawY blends cutting-edge AI with privacy-first safeguards and a unique 'lawyer-in-the-loop' feature. With over 40,000 lawyers worldwide having asked more than 1,000,000 legal questions, LawY showcases how AI can be tailored specifically for legal practice.

How LawY works:

LawY operates on a simple three-step process that puts these AI concepts into practice:

1. Ask your legal questions: You can prompt LawY with your legal questions in natural language and receive instant AI-answers. These responses are specific to your jurisdiction and matter type, and usually include linked citations – demonstrating both contextual understanding and transparency.
2. Select questions to explore further: LawY uses natural language processing to extract all substantive legal questions from your conversation. You can then choose which questions deserve deeper analysis.
3. Request Deep Research: You can request Deep Research (comprehensive analysis) for your selected questions, which generates within 15-30 minutes. These answers are tailored to your matter details and offer optional verification.
4. Submit your Deep Research answer for verification. LawY will forward your answer to our team of Verifiers, who’ll review it carefully to ensure it’s accurate and complete.

Three types of AI answers:

• Instant AI-answers: Lightning-fast conversational responses using generative AI for quick research and drafting
• Deep Research: Thorough analysis that combines AI efficiency with the option for human verification
• Verified Deep Research: Comprehensive research reviewed and corrected (as needed) by a qualified local lawyer

The verification feature exemplifies the human-in-the-loop approach. LawY Verifiers are experienced lawyers with minimum five years' specialised experience. They review AI-generated answers for accuracy, ensuring that AI's speed doesn't compromise quality.

This purpose-built approach means LawY isn't just a general AI tool adapted for law – it's designed from the ground up to understand legal concepts, terminology, and the unique requirements of legal practice.

Making AI work for your practice

• How does the tool handle your confidential information?
• What verification processes ensure accuracy?
• Is the AI trained on relevant legal sources for your jurisdiction and practice areas?
• Can you understand and verify the AI's reasoning?

The legal profession has always adapted to new tools that help us serve our clients better. From typewriters to computers to the internet, each technological shift initially seemed daunting. AI is the next chapter in this evolution.

Whether you're taking your first steps into legal AI or expanding your existing toolkit, remember that the most effective approach combines AI's efficiency with human expertise and judgement. The goal isn't to replace lawyers – it's to augment our capabilities and free us to focus on the high-value strategic work that truly requires human insight.

As AI continues to evolve, so too will our understanding and application of these technologies. By grasping these fundamental concepts, you'll be better positioned to navigate the opportunities and challenges that lie ahead in our increasingly AI-enabled profession.