City law firm Shoosmiths has launched a generative AI tool built with tech giant Microsoft to assist junior lawyers firm-wide in reviewing contracts.

The firm said the tool is trained on insight from lawyers at Shoosmiths, including from its M&A practice, and follows a year-long pilot and building programme with Microsoft to enable junior lawyers to “accelerate their learning” and improve transparency in the contract reviewing process.

The law firm, which is known for its deal-making work in mergers and acquisitions across the corporate sector and acts for high-profile clients including Mercedes-Benz, hotel chain Travelodge, and asset manger, Blackstone, told City AM the tool “is a key part of a multi-million pound investment in our AI capability as a firm.”

 “With our platform, developing lawyers can learn more, faster. Our self-developed generative AI software enables the firm to deploy its collective dealmaking expertise at scale, allowing lawyers to not only see what amendments have been made, but most significantly, why,” David Jackson, chief executive of Shoosmiths, said.

Jackson added the tool, known as Project Apollo, “will not only cut time in the contract review process for all our lawyers, but it will also enhance the quality and consistency of advice, accelerate deal delivery and fast-track the development of the next generation of lawyers.”

Shoosmiths confirmed that a senior lawyer will always review and sign off any outputs from the AI tool.

Firms hawk-eyed over juniors AI use

As law firms across the City jump aboard the AI bus, many are upping their oversight of junior lawyers using the technology.

City AM revealed on 16 earlier this month that lawyers acting for cosmetics giant Lush’s former chief executive, Andrew Gerrie, were hiking their fees ahead of a trial this month partly due to the necessity of deploying senior lawyers to train the AI model they’re developing specifically for the case.

Meanwhile reports continue to emerge of firms experiencing problems with AI hallucinations, such as the top City firm Pinsent Masons which was criticised by a High Court judge at the end of May after a junior lawyer sent the court false information in AI-generated letters.