Canadian Lawyer

www.canadianlawyermag.com 5 the data is stored on a private network that doesn't interact with the open internet. As Mark Doble, CEO of legal tech company Alexi, puts it, the big technology companies "power the data centres and hire the security guards." This is why more and more firms trust this solution regarding data storage rather than storing data on multi- tenant cloud providers accessible on the open internet. "There is definitely a trend towards local- ization of these systems… I think that's very clearly where we're headed. It allows us to maximize security without limiting capability." How AI can help Despite the concerns, using AI in law firms' data management could be worth the trouble – particularly when making sense of vast volumes of information. Law firms handle an increasing volume of data per matter, such as emails, chat logs, or social media. Joshua Lenon, Clio's lawyer-in-residence, says AI helps turn that firehose of data into something classifiable and usable. He says the caveat is that we should not try to replace existing good practices in data handling but build on them with new tools. Instead of relying on perfect tags or naming conventions (from the past), you can now ask natural language questions, Lenon says. "It opens up far wider use cases for law firm data than we had before." However, over-reliance on AI is a real threat that shouldn't be ignored. If law firms assume AI will handle all metadata correctly without previously estab- lished data management practices, they risk losing critical information. "It has to be a combination of the two. You still need solid data practices – it's just that you're no longer limited only to them," Lenon says. Best practices going forward The consensus among experts is clear: AI isn't going anywhere. It's likely to play a growing role in everything from document management to legal research to client communications. That's why law firms shouldn't shy away from AI but must adopt it thoughtfully. That means conducting due diligence on AI vendors regularly. They also need to use platforms that provide strong privacy controls and customizable permissions. Moreover, AI innovation needs to be paired with existing data best practices and not viewed as a replacement. For law firms, the path forward lies in embracing AI with eyes wide open – balancing innovation with the same commit- ment to data integrity and client trust. "It opens up far wider use cases for law firm data than we had before" Joshua Lenon, Clio IS YOUR LAW FIRM AI-READY? Conduct regular due diligence on vendors Use platforms with granular privacy controls Store sensitive data in private cloud environments Maintain solid metadata and naming systems Train staff on limitations and ethical concerns

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