The legal industry is undergoing a profound transformation as artificial intelligence moves from an experimental concept to an essential tool. Advanced systems like Agentic RAG are revolutionizing workflows, enabling tasks that once took weeks, such as complex M&A due diligence, to yield key obligations and renewal dates in minutes, dramatically reducing contract review time by up to 80%. However, this power demands unprecedented ethical responsibility and human oversight. Attorneys must vigilantly confront the risk of AI "hallucinations," the generation of fake legal citations that has already led to professional sanctions in court proceedings, ensuring meticulous verification and adherence to the duties of competence and diligence. Furthermore, firms must establish robust governance frameworks to keep sensitive client data private and secure, preventing potential breaches of attorney-client privilege and non-compliance with regulations like the UK GDPR. This shift toward technology-driven efficiency is compelling law firms to rethink old business models, as AI adoption places significant financial pressure on the traditional billable hour, necessitating a focus on clean data and hybrid AI-human workflows to define the future of practice.

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