How Automation is Reshaping Legal Workflows? (2025)

AI has made its way into almost every industry, including legal practice. ChatGPT recently passed the U.S. law school admission test, aka, LSAT. This development has opened a dialogue about how artificial intelligence impacts legal work. We are still decades (or perhaps just a couple of years) away from AI arguing in the court of law. 

But for now, AI tools have been proven to amp up productivity. And it’s a step in the right direction. According to research, proper use of AI tools can increase productivity by almost 66%. 

Law is not just about arguing cases. It also involves tons of repetitive manual work such as document review and contract analysis that can be streamlined with AI and automation. 

In this article, we will shed light on how these tools are changing the legal profession and what benefits they bring to attorneys and law firms.

4 Ways How Automation Transforms Legal Workflows

Here are four ways how automation tools will change the legal space in 2025!

Cut Hours Off Legal Research and Document Review

Legal professionals spend countless hours sifting through cases, statutes, and precedents to build arguments. This time-intensive process pulls attorneys away from higher-value work. AI-led tools now scan thousands of documents in minutes, finding relevant information that would take humans days to discover.

Document review software with machine learning identifies key clauses, flags potential issues, and categorizes content automatically. These systems improve with use, learning from lawyer feedback to become more accurate over time.

In merger and acquisition (M&A) scenarios, AI systems slash due diligence review time by nearly three-quarters. Attorneys can process thousands of contracts and agreements while AI tools highlight critical provisions that might affect deal terms. What once took weeks now finishes in days without sacrificing thoroughness.

For example, contract analysis tools can extract important dates, obligations, and non-standard language across hundreds of agreements simultaneously. What once required a team of junior associates can now be completed by one attorney with AI assistance.

The real advantage isn’t just speed – it’s precision. These tools reduce human error from fatigue and help attorneys spot patterns across large document sets that might otherwise go unnoticed. This lets lawyers focus on strategy rather than drowning in paperwork.

AI-Powered Compliance Monitoring in Regulated Industries

Legal teams in pharmaceuticals and financial services constantly struggle to ensure all marketing claims and product information meet increasingly strict regulatory standards. The consequences of compliance failure can ripple through years, particularly when public health hangs in the balance.

Big pharma companies getting slammed with class-action lawsuits is not new; it has been happening for years. The failure to properly vet product claims and ensure regulatory compliance is not always intentional, but the results are often disastrous. 

When these mistakes happen, they put a huge dent in customer trust. Not to mention the hefty penalties, including fines, lawsuits, and damage to the company’s reputation.

The Depo shot lawsuit is a prime example of this risk. This contraceptive injection is now at the center of legal action because studies published in the British Medical Journal found that prolonged use is associated with a 500% increased risk of developing meningioma brain tumors. 

The lawsuit alleges that the manufacturers neglected to properly warn users about the heightened risks of this drug, reports TorHoerman Law.

AI-powered tools can help prevent such situations by automating monitoring and compliance checks. These tools can quickly scan product claims, advertisements, and promotional materials to flag any potentially misleading language. 

AI can also assist with data analysis, cross-referencing clinical trials, research, and regulatory guidelines to ensure claims are supported by credible evidence. This proactive approach helps legal teams catch discrepancies before they escalate into major issues.

Save Time and Reduce Risk With Smart Contract Management

Contract management remains one of the most time-consuming aspects of legal work. Many law firms still handle contracts manually—reviewing, editing, storing, and tracking key dates and provisions through spreadsheets or basic document systems.

AI-powered contract management platforms now automate this entire workflow. These systems extract critical information from agreements, flag unusual terms, and track renewal dates automatically. When a contract contains non-standard language, the AI highlights these sections for attorney review while handling routine clauses without human intervention.

AI excels in legal language by using Natural Language Processing (NLP) to understand and interpret complex legal terminology. NLP algorithms are trained to identify patterns in legal language, enabling the system to distinguish between standard and non-standard clauses, flagging inconsistencies or discrepancies. 

Moreover, AI can analyze contract clauses in relation to previous agreements, legal precedents, and regulatory standards, ensuring compliance. This technical ability to parse, interpret, and assess vast amounts of legal text at high speed significantly reduces the manual effort required, improving accuracy and efficiency in contract management.

Related articles:

• How Artificial Intelligence (AI) Can Change The Legal Landscape?
• How to Unlock the Benefits of AI in Contract Management?

Not Here to Replace, But Enhance Legal Work

“AI will replace lawyers” is more of a science fiction than a reality. The technology doesn’t work that way, even though it can certainly handle repetitive tasks more efficiently. What AI can do is streamline processes, improve accuracy, and give legal teams the tools they need to focus on more strategic work. Far from replacing lawyers, AI is here to enhance their capabilities.