Commoditisation working in conveyancing’s favour?
The discussions around the use of generative AI in the conveyancing workspace often leads to the notion that jobs will be lost in the industry. But there is a school of thought that the nature of the work dictates that there is a need for humans and technology to coexist productively.
JOEL Barolsky, Managing Director of Barolsky Advisors and Senior Fellow of the University of Melbourne believes generative AI could potentially do the same thing across many areas of the law. However, also believes that because conveyancing has to some extent already been ‘commoditised’, this should help shield it from job losses. Instead, his view is that it will be the high-fee, highly specialised areas of legal practice that have the most to fear from generative AI.
In reaching this conclusion, Barolsky uses a four-pronged analysis to determine a sector’s vulnerability to AI, the first element of which is the cost of labour.
“When you compare labour costs in conveyancing, they’re nothing like the labour costs in a field like mergers and acquisitions,” he says. “The savings won’t be on the same scale.”
The second element in Barolsky’s analysis is client power when it comes to buying – something he says also makes conveyancing less disruptable than areas of practice where large corporations tend to be the clients.
The third factor is effectiveness, or how well AI can analyse or solve a problem; and the final is regulatory constraints, or whether there are any legal hurdles to implementing.
“When these factors are taken together, I don’t think conveyancers will be losing their jobs en masse anytime soon.”
Why your practice needs to take notice of AI
Still, that doesn’t mean conveyancers can afford to ignore generative AI, especially if it can help them do their jobs much more efficiently.
“It’s not about being replaced, it’s about being empowered to do the job faster,” Shane Budden says. “AI tools are more about augmenting the capabilities of professionals rather than replacing them. The real potential lies in creating tools that professionals can use to enhance their practice.”
Meanwhile, Hunter Steele argues that, even if conveyancers don’t notice changes immediately, those that fail to keep pace with AI will find they gradually become less efficient than their competitors to the point where they can no longer compete.
“Things aren’t going to today or tomorrow,” he says. “But I guarantee in 10 years time I guarantee we will all be using AI and it will be a central part of what conveyancers do day-to-day.”.
“It’s not going to replace people altogether but if you don’t adapt to it, you may be replaced and your business won’t survive,” he concludes.
Challenges along the way
Barolsky warns that while conveyancing practices will need to move on AI, they should also keep a close eye on developments and watch the space carefully rather than jumping ‘all in’ right from the outset.
“You don’t want to fall for the hype from either side,” Barolsky says.
After all, he points out that there are ethical and regulatory obstacles that need to be overcome before AI is widely implemented and that these may act as a ‘handbrake’.
“But history shows us people usually find a workaround,” he says.
Budden also observes that a final obstacle ChatGPT and other generative AI models need to overcome is a propensity to make things up – a practice that is known as ‘model hallucination’.
“Property law isn’t a field in which you can afford to make errors,” he observes.
However, he is confident that, as time goes by, this too will be overcome.
“As the technology matures, and with increased investment and focus on accuracy and reliability, these AI ‘hallucinations’ will become less frequent. This evolution will make AI tools more dependable in areas where precision is critical.”
“The key for conveyancers will be to stay informed, adapt to new developments, and cautiously integrate AI into their workflows, ensuring they maintain high standards of accuracy and compliance.”
