When Professor Daniel Schwarcz talks about AI in law, it’s clear you’re hearing from someone deeply passionate and incredibly informed. A leading voice at the University of Minnesota Law School, Schwarcz bridges the academic and practical worlds of AI, insurance law, and legal technology. In a recent conversation, he shared his insights into the profound ways generative AI (GenAI) is reshaping the legal profession — and why experimentation and data-driven approaches are essential for lawyers navigating this technological shift.
Watch the full conversation here: Empirical Evidence on the Impact of AI in Law.
AI And The Art Of Prediction
Professor Schwarcz’s journey into AI began with his expertise in insurance law, a field deeply intertwined with prediction. “Insurers have always been early adopters of predictive tools because their business revolves around forecasting claims, losses, and risks,” he explained. It was this predictive potential of AI that naturally aligned with his broader research interests.
But GenAI’s ability goes beyond traditional predictive analytics. When OpenAI’s ChatGPT burst onto the scene, Schwarcz dove headfirst into studying how this technology could affect legal education and practice. His seminal work, “ChatGPT Goes to Law School,” set the stage for a broader investigation into AI’s role in legal processes.
The Efficiency Game Changer
One of Schwarcz’s key studies explored the real-world impact of AI on lawyering tasks. His team conducted experiments where law students used GPT-4 for tasks like drafting memos, contracts, and complaints. The results? A 30% to 50% improvement in efficiency without sacrificing quality.
“AI doesn’t just save time — it levels the playing field,” Schwarcz noted. Junior lawyers and those less experienced in specific legal areas benefit the most, as AI helps them quickly bridge knowledge gaps. However, he also cautioned that AI can sometimes hinder higher-performing individuals by encouraging over-reliance and reducing independent thinking.
Why Human Lawyers Still Matter
Schwarcz introduced the term “human lawyering” to emphasize a crucial distinction: whether a human remains in the decision-making loop. “We’re nearing a point where some legal tasks could be fully automated,” he said. “But the role of human lawyers — especially in interpreting, applying, and personalizing legal advice — remains irreplaceable.”
This perspective underscores an important principle: AI is a tool to amplify human expertise, not replace it. From brainstorming contract clauses to summarizing depositions, AI shines when paired with experienced lawyers who can validate its output and refine its suggestions.
The Risks: Tunnel Vision And Hallucinations
Despite the clear benefits, Schwarcz highlighted significant risks. Chief among them is “falling asleep at the wheel,” where reliance on AI reduces critical thinking and leads to tunnel vision. “Writing is thinking,” he explained, warning that skipping the initial stages of drafting in favor of AI can short-circuit deeper analysis.
Then there are hallucinations — AI-generated errors that present false or nonsensical information. While advanced models are reducing this issue, Schwarcz stressed the importance of always verifying AI outputs, especially in high-stakes legal contexts.
Experimentation As A Legal Skill
Schwarcz championed a mindset of continuous experimentation for lawyers. “Think like an entrepreneur,” he advised. “Keep a sticky note on your desk that says, ‘Can GPT-4 help me with this?’ and start trying it out.”
He emphasized the importance of testing AI across different tasks, tools, and contexts. From summarizing case law to drafting documents and even serving as a digital editor, GenAI’s potential is vast — but only for those willing to explore its capabilities.
A Glimpse Into the Future
While Schwarcz hesitates to predict exactly how AI will reshape the legal profession, he’s certain of one thing: change is inevitable. “We’re at the start of a massive transformation,” he said. Potential outcomes range from fully automated legal services to a reimagined law firm model with new ratios of associates to partners and increased use of non-lawyers for tech-assisted tasks.
Final Takeaway: Play, Learn, And Read The Data
For lawyers wondering how to stay ahead, Schwarcz’s advice is clear: start experimenting and seek out data-driven insights. “There’s a lot of hype — both positive and negative — around AI,” he noted. “Look at the evidence, test the tools, and don’t be afraid to challenge your assumptions.”
In a rapidly evolving legal landscape, this mindset isn’t just an advantage — it’s a necessity.
Watch the full conversation here: Empirical Evidence on the Impact of AI in Law.
Olga V. Mack is a Fellow at CodeX, The Stanford Center for Legal Informatics, and a Generative AI Editor at law.MIT. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat, Fundamentals of Smart Contract Security, and Blockchain Value: Transforming Business Models, Society, and Communities. She is working on three books: Visual IQ for Lawyers (ABA 2024), The Rise of Product Lawyers: An Analytical Framework to Systematically Advise Your Clients Throughout the Product Lifecycle (Globe Law and Business 2024), and Legal Operations in the Age of AI and Data (Globe Law and Business 2024). You can follow Olga on LinkedIn and Twitter @olgavmack.