As I sit down to write this inaugural column for Trusts & Estates, it’s important to introduce myself. I’m Craig Hersch, a 60-year-old senior shareholder of the Sheppard Law Firm, a 100-year-old boutique office in Fort Myers, Fla. We specialize in wills, trusts and estates, serving a wealthy and quite demanding clientele. While my expertise is firmly rooted in the legal realm, I must admit that I’m not a technology expert.
However, like many of my peers, I’m intrigued by the potential of artificial intelligence (AI) to revolutionize how we practice estate-planning law. AI is the simulation of human intelligence in machines designed to think, learn and solve problems. Some might think that at my age, I’m too old to be dabbling in AI—as I’ll describe in a minute, I vividly remember a time when computers weren’t at every workstation!
Embracing Technology
When I was offered a partnership as a young associate in the early 1990s, I told the senior partners I would accept it on three conditions: First, I insisted that we put a computer at every station, including for the attorneys. At that time, only one legal assistant had a Wang Word Processor that the team affectionately referred to as “Mother,” and everyone else used IBM Selectric typewriters. Second, I demanded that we network those computers. In my previous law office, paralegals traded 5.25-inch floppy disks containing client data. If a disk was lost, so was the data! Third, I proposed that we implement email. Although I now have a love-hate relationship with email, it’s an essential communication tool. It’s like imagining an office without free coffee—simply unthinkable!
One of my then “older” partners (he was only 47, but at 28, I considered him ancient) proclaimed he would never use email. Fast forward a few years, and he was the first to sign up for listservs—albeit for his favorite college team, the Iowa Hawkeyes. This experience taught me that while technological change can be met with resistance, it often becomes indispensable over time.
When asked why I imposed these conditions on a then 70-year-old, ultra-successful firm, I explained that technology is constantly evolving. I didn’t want to buy a shareholder interest in a dinosaur. Just as it would now be ludicrous to run an estate-planning practice without computer networks, web-based research tools, document drafting platforms and interactive websites, AI will soon become another essential tool. We must use it or risk becoming extinct against smarter, nimbler competitors. This perspective remains relevant as we stand on the brink of another technological revolution.
The Intrigue and Potential of AI
AI’s potential impact on our profession can’t be overstated. From automating mundane tasks, to communicating value propositions to clients, to providing predictive analytics that forecast trends and outcomes, AI is a game-changer. Despite the common fear that AI will replace human roles, I firmly believe it won’t replace anyone. Instead, those who harness the power of AI will replace those who don’t. This subtle yet profound distinction underscores the need to adapt and integrate AI into our practices. Besides, if my then middle-aged partner became an email enthusiast, surely, we can embrace AI.
Addressing Fear of Replacement
The fear that AI will make us obsolete is understandable but misplaced. AI is a tool—a remarkably powerful one—that can enhance our capabilities and efficiency. For example, it can streamline tasks like summarizing client meetings, drafting letters based on those meetings and then delegating tasks to our team based on those meetings. By quickly identifying relevant information and flagging inconsistencies, AI allows us to focus on more valuable, professional-specific aspects of our work, such as client interactions and strategic planning. For attorneys, accountants and financial advisors who understand which parts of their practice clients view as commoditized and where client-perceived value is focused, AI won’t replace them. Instead, they’ll use AI to quickly handle the commoditized aspects, freeing themselves to focus on the activities clients most treasure.
Finding Your “Who”
Given our demanding schedules, delving into AI might seem daunting. Many estate-planning attorneys I coach, as well as other related professionals, express that they don’t have the time to investigate AI thoroughly. This feeling is valid, especially when balancing client needs and running a practice. However, finding your “who”—individuals or firms specializing in AI implementation—can be equally as daunting. The problem is, with such a new field, who are the right “whos?” Log onto social media and express an interest in AI, and you’ll be inundated with offers. In this column, I’ll describe the attributes of the right firm you’re looking for.
Defining Basic AI Terms
Before we delve deeper into AI applications in future columns, it’s crucial to establish a foundational understanding of some basic AI terms:
AI agents. AI programs that perform tasks autonomously based on pre-programmed instructions.
AI assistant. AI software designed to leverage AI for personal or professional productivity.
Algorithm. A set of rules that a machine can follow to learn how to do a task.
Application programming interface (API). A set of protocols and tools that allows different software applications to communicate with each other. APIs enable the integration of AI services into existing software, enhancing their capabilities.
Automation. Workflow automation is created by linking various user programs with bots and integrated software such as Zapier, Power Automate (Microsoft’s version) and Workato.
Big data. Datasets too large or complex to be used by traditional data processing applications.
Bot. An “AI robot” programmed to perform specific, often repetitive tasks without user interaction or further prompts. It usually runs in the background.
Custom GPTs (OpenAI). In OpenAI, GPTs (generative pre-trained transformers) are user-created environments of ChatGPT that can be tuned to a user’s specific instructions and through providing reference material and prompting. Attorneys can instruct CustomGPTs to view their prompts to understand that this question is asked in the correct context, such as estate planning or being an attorney.
Deep learning. A subset of machine learning that uses neural networks with many layers to analyze data. Effective for tasks such as image and speech recognition.
Graphical user interface (GUI). A visual way of interacting with a computer or software using items like windows, icons and menus.
Machine learning (ML). A subset of AI that uses algorithms and statistical models to enable machines to improve their performance on tasks over time with experience.
Natural language processing (NLP). A field of AI focused on the interaction between computers and humans through natural language. Applications include chatbots, language translation services and voice-activated assistants.
Neural network. A computer system designed to function like the human brain, performing tasks involving speech, vision and strategy.
On-premise/Cloud AI. AI models that run on an organization’s local or cloud servers. Larger companies and firms adopt these to ensure their bots and prompts aren’t used as training material for public AI models, possibly aiding their competitors. These AI models also tend to assuage privacy and confidentiality concerns.
Predictive analytics. The use of statistical techniques and algorithms to analyze historical data and make predictions about future events. In estate planning, it can help anticipate client needs and market trends.
Prompt. Text or code provided to an AI model to elicit a response, used in tasks like generating specific outputs from the model.
Benefits of AI in Estate Planning
The benefits of AI in estate planning are numerous and transformative:
Efficiency and productivity. AI can automate repetitive and time-consuming tasks, allowing attorneys to focus on higher value activities.
Accuracy and consistency. AI systems can reduce human error by consistently applying rules and checking for inconsistencies.
Client insights. AI can analyze large volumes of client data to identify patterns and trends, enabling more personalized and proactive service.
Cost savings. AI can reduce operational costs by automating routine tasks and improving efficiency.
Enhanced decision making. AI-powered predictive analytics can help attorneys make more informed decisions by forecasting potential outcomes and identifying risks.
Challenges of AI in Estate Planning
While AI offers significant benefits, it also presents challenges that need to be addressed:
Privacy and confidentiality. Practitioners must ensure that the security and confidentiality of client data is paramount.
Ethical considerations. AI systems must be designed and used ethically, with transparency and accountability.
Integration and implementation. Successfully integrating AI into existing workflows and systems can be complex and resource intensive.
Dependence on technology. Over-reliance on AI can lead to challenges if systems fail or if there’s a lack of human oversight.
Personal Anecdote
On a personal note, my son-in-law runs an AI product development firm with experience across big tech and the startup ecosystem. Together with my law partner, Michael B. Hill, we’re developing AI-driven solutions within our firm to streamline operations, enhance client interactions, including with prospective clients, and ultimately add more client value to our services. And let’s face it, anything that helps me spend less time on administrative work and more time enjoying life is a win in my book!
I wrote this column in a small fraction of the time it typically takes me, thanks to the assistance of AI. In future columns, I’ll delve deeper into these topics from a layperson’s perspective leading a professional practice. I also plan to interview top AI experts to create podcast episodes expanding on the topics you’ll read here. I’ll give you links to those interviews. I hope that by simplifying the choices out there, you’ll be able to make better educated decisions. Stay tuned as we embark on this exciting journey together.1
Endnote
1. If you’re interested in more information on AI, check out my podcast series, https://4freedompractice.com/ai/.
