Law is Not the Product
My research centres around the critical dialogue about professionalism, commercialism, and the role of ethics in law practice. This article explores a little about this tension and some of the ethical standards which should govern modern lawyering.
As artificial intelligence (AI) continues to disrupt traditional legal service delivery models, it becomes increasingly essential for law firm leaders to establish robust ethical frameworks, moving beyond mere compliance with the rules to foster a culture of integrity and professionalism.
Commercialism and the Law
The legal profession has seen a significant shift towards commercialism over the last 50 years. The focus of those in practice leans more towards profitability than with the ethical obligations lawyers owe clients and society. This shift raises concerns about the perception of eroding ethical standards, with proponents pointing to the public discipline of poor behaving lawyers as evidence. The concern is valid. If legal services are treated as commodities, the fundamental principles of justice, the rule of law, and client advocacy can be overshadowed by financial considerations.
The issue I have seen with many firms obsessed with profit margins (and little else) is the assumption that law is the product that is being sold.
No one buys a lawyer. Clients buy outcomes or specialised information.
By neglecting the "why" aspect of law's professionalism, law firm owners end up trapped in a cycle of endless commodification which usually results in the firm's insolvency. Whilst I admit there is no silver bullet here, one aspect of this problem involves how lawyer ethics and conduct is evolving, and what you can do about that.
Ethics vs Rules
Due to initial and continuing legal education, many lawyers equate legal ethics with adherence to the profession's codes of conduct and rules. Whilst in a general sense, acting within the rules is a good idea; it does not make an ethical lawyer. This is especially the case when caught in the commodification cycle. Acting only in accordance with the priorities set down by the rules is a limited perspective and can lead to a superficial understanding of ethical practice. The results of a stunted understanding is the absence of skills to deal with unique and difficult ethical dilemmas which often arise in practice.
Rules are often reactive, designed to prevent misconduct rather than promote ethical behaviour. True professionalism requires proactivity, where lawyers and law firm leaders cultivate a deeper ethical understanding which transcends mere compliance.
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The Role of Law Firm Leaders
To address the challenges brought about by law's commercialism, law firm leaders must take an active approach at developing your own ethical frameworks for yourselves and your firms. This involves defining what ethical law practice means within your specific business models and ensuring that those values are integrated within the firm's culture.
Ethical and sustainable legal practice is not about seeing law as a commodity to be bought and sold, but a part of the larger process in delivering the outcome (or information) your clients are wanting to buy from you.
Leaders should encourage open conversations about ethics and ethical dilemmas which arise in practice. Training is essential. Finally, fostering a safe and collaborative environment where ethical dilemmas can be addressed as a firm activity is critical.
The Impacts of AI on Legal Services
As technology continues to reshape the legal services landscape, the need for a robust ethical framework has become even more pressing. Whilst technologies - like AI - enhance productivity and certainly reduce costs, accountability and responsibility questions arise. Not to mention all the basic risks which need to be managed with any new technology in legal practice - client confidentiality, accuracy, and bias.
Leaders must consider how your ethical frameworks can adapt to these technological advances. This is pressing given the new wave of AI technologies in the form of agentic AI (AIs which can be agents, doing tasks on their own with a simple prompt) are upon us. Leaders must consider how to adapt your ethical frameworks to these technological advancements, ensuring that AI use in your firm aligns with the core values of the legal profession and serves society.
Conclusion
TL;DR:
As my research continues, I hope to share some of the initial thoughts on what ethical frameworks are and how to develop one for yourself and your practice.
Full credit to Hayley Evans for the inspiration to the title (and some of this content) of this month's instalment of the Fully Automated Luxury Lawyer.
If you find this newsletter useful, please consider sharing with a friend or colleague. If you're inspired and want to discuss, I'm open to all sorts of conversations around law, lawyering, technology and wellness.
Global CEO
2moThis is such a valuable perspective and highlights some of the challenges other sectors such as banking have faced as technology has been adopted and humanity removed.
Managing Editor at By Lawyers Australia and New Zealand
2moGiven that insolvency means not being able to pay your bills as and when they fall due, I suspect there are lots of incorporated legal practices that frequently trade while technically insolvent. That's not necessarily an existential threat, nor even always a problem operationally, and it is unlikely to become a misconduct issue, but it certainly highlights the ethical considerations that you raise if the practitioner is in repeated breach of their director's duties. Interesting stuff Chantal McNaught!
✅ Loan and Lease Management Software ✅ ex Financiers Association of Australia Industry Representative to Government
2moJust a thought. The "Rules" may not necessarily be moral and you can have ethical principals that aren't moral. So where, if anywhere, do you see morality being part of the mix? Do you leave that with an individual lawyer? AI probably won't help and the client might not only want a solution that's ethical but moral as well. The two don't always go hand-in-hand and is why many get confused as to the differences. .
Digital Strategist, Business Consultant and Photographer
2moInsightful as always. Looking forward to reading your thesis. PS replace your /yourselves with their/themselves in the role of a leader paragraph