A lawyer’s guide to Large Language Models (LLMs)

Read time
9
min
Written by
Alexander Lampaert
Published on
August 27, 2025

LLMs are increasingly important for legal work. They power faster contract reviews, compliance checks, due diligence, and everyday drafting. On its own, an LLM is just a language model trained to predict the next word in a sequence. Tools like ChatGPT give direct access to these models, which is why you might see colleagues using them for quick answers.

But legal AI platforms go further. They take the raw capabilities of an LLM and add legal-specific training, workflows, security, and integrations. This makes them suitable for real legal work where confidentiality and accuracy matter.

To make the most of both, lawyers need to understand what an LLM is, how it works, what it cannot do, and how platforms built on top of them work.

What LLMs are, and what they’re not

An LLM is a type of artificial intelligence trained on massive amounts of text. Instead of “knowing” facts, it learns patterns in how words and sentences are used together. This lets it predict the next word in a sequence - similar to autocomplete on your phone, but on a far more advanced level.

Some LLMs are public and offered by companies such as OpenAI (ChatGPT) or Anthropic (Claude). Others can be run privately by a business or by a vendor that guarantees the data will not be shared outside.

It is important to understand that an LLM does not work like a database or a search engine. It does not retrieve stored facts. It generates responses based on patterns it has seen in training. This means it can sometimes produce answers that look convincing but are wrong. These mistakes are called “hallucinations.”

LLMs can also be adapted for specific fields. When trained or fine-tuned with examples from legal work, they become more accurate for legal tasks. Without that step, general-purpose models are usually not reliable enough for sensitive or high-risk legal matters.

Read more: Everything you need to know about agentic AI for legal work

How LLMs work under the hood

LLMs are powered by an attention mechanism. Unlike people, who read text line by line, an LLM looks at all the information in a prompt at once. This means that how you frame the prompt strongly affects the result.

The model generates text one word at a time. Each new word is chosen based on probabilities calculated from all the previous words. The same question may produce different answers because the model introduces small variations in this process.

Different models perform differently. For example, Claude is often seen as better for tone and style. OpenAI models are often stronger in structured reasoning.  

Practical prompting tips for lawyers

The quality of outputs depends on the quality of inputs. You can improve results by using these prompting practices:

Provide full context. State who you are, what the task is, and what the end goal should be. For example: “I am a commercial lawyer reviewing NDAs. Produce a first-pass redline highlighting confidentiality clauses that deviate from the standard template.”

Give precise instructions. Do not use vague requests such as “make this better English.” Instead, define what “better” means: plainer English, a more formal tone, or a shorter summary.

Use only positive examples. Show the structure or style you want. Avoid including “bad” examples, as the model still pays attention to them and may reproduce parts of them.

Set clear rules. For legal work, this can mean instructions such as “Always quote case law, never paraphrase” or “Cite legislation in full title and section number.”

Break down complex tasks. Rather than asking for an entire due diligence report in one step, begin with a plan, then build each section step by step. This produces more reliable and reviewable results.

Start fresh when refining. If repeated iterations drift away from your original request, restate the task in a new session with a clearer prompt.

Save and reuse prompts. Keep a standard system prompt or instruction block that you can paste into new sessions so the model consistently understands your role and objectives.

Experiment with format. The way you structure your instructions (bullet points, numbered lists, or headings) can affect how the model organises its response.

Think of it like giving instructions to a junior lawyer. The clearer and more structured the guidance, the stronger the result.

Common mistakes LLMs make

Anyone who has used ChatGPT or another model will have seen the quirks. Some common mistakes include:

Maths errors. LLMs are not calculators. They generate text based on patterns in historic data, which means they often fumble when asked to do sums or more complex calculations.

Hallucinations. Sometimes models will confidently invent facts, cases, or citations that look convincing but are not real.

Context drop-off. With long documents, some models only process the first section properly, missing clauses buried deeper inside.

Why do LLMs give different answers to the same question?

LLMs do not always give the same answer to the same question. This variation comes from how they generate text. The model produces responses one word at a time, choosing each new word based on probabilities. The highest-probability word is not always selected, which creates natural differences between outputs.

Most models also use a setting called temperature. At higher temperatures, the model explores less probable words and produces more varied responses. At lower temperatures, it tends to repeat the most likely phrasing, which makes it more predictable.

For example, if you ask an LLM to summarise a confidentiality clause, at a low temperature it might consistently produce:

“This clause prevents either party from disclosing confidential information to third parties.”

At a higher temperature, the same request might return alternative wordings, such as:

“Neither party may share confidential material with outsiders unless permitted by law.” or

“Confidential data must be kept private and not revealed to any external person.”

The meaning is similar, but the phrasing changes.

What LLMs can do for legal teams

LLMs excel at recognising and generating patterns in language. This makes them useful for legal work that revolves around documents, precedents, and structured text. When used well, they can help lawyers:

  • Handle routine questions from business colleagues by drawing on policies or playbooks
  • Speed up legal research by scanning and summarising large volumes of material
  • Draft and redline contracts quickly, reducing hours of manual editing
  • Produce clear and consistent memos, briefs, and email responses
  • Run due diligence by extracting and condensing information from large document sets
  • Flag unusual or risky clauses and compare drafts against standard templates
  • Check contract terms against regulatory requirements such as GDPR, AML, ESG, or DORA
  • Generate templates that adapt to contract type, jurisdiction, or party details

Types of LLM deployments lawyers should know about

Different LLM-based tools have different strengths. However, public models are not designed to handle sensitive information. They are best used for low-risk, general tasks. For anything involving sensitive data, secure legal AI platforms are the safer option.

Some tools give access to general-purpose LLMs through APIs. These include tools from providers like OpenAI or Anthropic. They are fast to deploy but raise concerns around privacy, data security, and legal risk.

Other tools are built on open-source models such as Mistral or LLaMA. These can be hosted in private cloud environments or on-premise, which gives more control over security and data handling. They often require more technical support.

A growing number of legal technology platforms are built on top of one or several LLMs. Being LLM-agnostic means a platform is not tied to a single model but can draw on whichever performs best for a given task. This matters because different models have different strengths. One might handle long contracts better, another may reason more effectively through complex regulations. It also avoids over-reliance on a single provider and keeps the platform adaptable as new models emerge. LEGALFLY is LLM-agnostic, so it can route tasks to the most suitable model while anonymising data to maintain confidentiality.

Read more: Confidence, reliability and validity at LEGALFLY

See LEGALFLY in action

Go to the link below to schedule a call with a LEGALFLY expert and find out how you can get started with AI for legal work.

How LLMs learn and use data

LLMs are trained on very large collections of text, such as books, articles, websites, and in some cases licensed datasets. During training, the model learns patterns in how language is used but does not store the original documents in a retrievable form. Instead, it captures statistical relationships between words and phrases.

When a lawyer enters information into an LLM, that information is processed to generate the response in the current session. For most commercial models, inputs are not used to retrain the model itself. However, some providers may use conversations to improve future versions of the system unless users opt out. This means it is important to understand the provider’s data policy.

A common question is whether something you type into an LLM could appear later in someone else’s response. The answer is no. The model does not copy and reshare individual prompts or documents. What it produces comes from its learned patterns rather than a database of stored inputs.

For lawyers, the key point is that an LLM does not “know” facts in the way a case law database does. It generates plausible language based on patterns in its training data, and the quality of its outputs depends on how it was trained and what additional legal material has been built into it.

Read more: The hidden AI dangers in your organisation

How LLMs change legal work

LLMs are changing the balance of tasks within legal teams. Well configured systems can now produce solid drafts, clause comparisons, and document summaries. This shifts the focus away from repetitive drafting and towards higher value work that requires reasoning, judgment, and context.

For junior lawyers, this could mean developing the ability to:

  • Refine and edit AI-generated outputs into final drafts that meet firm or client standards
  • Spot gaps, errors, or overly general language in model outputs
  • Translate an AI-produced summary into practical next steps for a deal, dispute, or compliance review
  • Handle exceptions and unusual cases that fall outside the patterns an LLM has learned

For senior lawyers, the skill set is becoming more strategic. They will need to:

  • Decide where LLMs add the most value across workflows and which tasks still require full manual control
  • Set review standards so teams know when an AI output is good enough to move forward and when it must be reworked
  • Train teams on how to get better results from prompts and how to critically evaluate outputs
  • Use AI outputs as the basis for action plans, client communications, or negotiations, ensuring that the language is converted into clear business decisions

As LLM use becomes routine, a key professional skill will be the ability to work with these outputs productively. Used in this way, LLMs free legal professionals at every level to spend more time on interpretation, negotiation, and client engagement rather than on repetitive text production.

Read more: 

The LEGALFLY guide to AI for legal documents: How and where to use it

How to use AI for contract review and analysis 

Questions to ask vendors

There are a few questions that go a long way in assessing whether an AI tool is safe, reliable, and appropriate for legal work.

  • What data is the model trained on?
  • Is the model hosted in the UK or EU, or in a location that meets our data sovereignty requirements?
  • How is sensitive information handled before it reaches the model?
  • Are prompts and outputs stored? Are they ever used to improve the model?
  • Can logs be reviewed? Can outputs be traced and explained?

Asking these questions upfront avoids surprises later - and helps ensure legal teams stay in control of their data, their work, and company wide outputs.

Read more: How to assess legal AI platforms in 10 minutes

Choosing the right legal AI tool

LLMs provide the underlying capability to generate, compare, and analyse language at scale. On their own, however, they are raw engines that need direction and guardrails. What makes them useful in practice are the tools built on top of them. These tools package the power of LLMs into structured workflows that lawyers can apply directly to contracts, compliance reviews, or due diligence.

Well designed legal AI platforms add the elements that matter in practice: templates, review steps, role-based controls, and integration into the software lawyers already use. This is what turns an LLM from a general-purpose model into something that delivers consistent legal results.

If your team is looking for a dependable legal AI platform, LEGALFLY is built around real legal workflows, protects sensitive data through anonymisation, and delivers quantifiable results.

It combines the power of LLMs with privacy safeguards, structured reviews, and workflows lawyers actually use, even in Microsoft Word. Whether you're reviewing contracts, checking compliance, or building smarter templates, LEGALFLY helps legal teams move faster without losing control.