Artificial intelligence is reshaping the legal profession, prompting debate about whether the technology will replace lawyers or create more work for them. The reality, however, is likely to be more nuanced.
As AI tools become increasingly sophisticated, they are expected to change how legal services are delivered and the skills clients value most.
While technical expertise and attention to detail will remain essential, commercial judgement, strategic thinking, emotional intelligence and advocacy are likely to become increasingly important in distinguishing exceptional lawyers.
This thinking underpinned the establishment of Market Street Legal, a new boutique corporate and commercial law firm founded by senior corporate lawyer Isabella Bosworth in 2025.
After more than 15 years working predominantly on mergers and acquisitions at leading national and international law firms, Ms Bosworth saw the changing market dynamics as an opportunity.
Market Street Legal aims to provide top-tier legal expertise through a small, experienced team, leveraging AI tools where appropriate while providing clients with friendly, accessible and tailored advice. The firm's initial focus is on transactions involving bespoke agreements and complex negotiations.
“Ultimately, negotiations are a very human thing. We may agree to things that are not in our interests to obtain an outcome that satisfies a commercial or emotional requirement,” Ms Bosworth said.
“Some lawyers overlook these real-life drivers in favour of trying to claw, often in an adversarial manner, a ‘win’ on each point.
“This can be short-sighted because a transaction usually signals the start of a future, ongoing relationship between the two parties – and if carefully drafted and respectfully negotiated, a contract can provide an excellent bedrock for this relationship.”
AI tools are increasingly capable of identifying drafting inconsistencies and assessing potential legal issues.
However, they tend to present a “laundry list” of issues, and deciding which are appropriate to pursue (or how best to pursue them) in the surrounding circumstances remains a very human judgement call.
Ms Bosworth has been involved in a number of M&A transactions where deals have nearly fallen over due to differences in approach between the parties.
“This often happens where you have a well-resourced large corporate or fund on one side, who undertake multiple transactions in a financial year, and a comparatively under-resourced founder or family business on the other side, for whom this may be a once-in-a-lifetime transaction,” she said.
“A one-size-fits-all approach can overwhelm the founder or family business with work and make them feel undervalued. Having a good lawyer who understands the dynamics and can tailor the approach based on a range of considerations including risk, optics and commercial or emotional drivers, can be integral to ensuring the deal proceeds smoothly.”
Ms Bosworth believes that Market Street Legal may be the first female-founded corporate law firm in Western Australia, and there’s an easy connection to be made with the EQ-driven approach to negotiation – but she is keen to downplay that stereotype.
“I don’t necessarily subscribe to the stereotype that women have better EQ. I would say my male colleagues’ EQ would be as good as mine. It’s certainly an important consideration when looking for a lawyer, male or female,” she said. “But you need to bring the full package – EQ, strategic thinking and mastery of the logic-driven approach to contract drafting – to best service your client’s interests.”
Ultimately, Market Street Legal sees the development of AI tools as an opportunity. It has the potential to level the playing field for small firms, allowing them to manage larger matters that would typically have required large teams of junior lawyers to complete.
As the accuracy of these tools improves, they could enable lawyers to focus more on strategic and commercial considerations, rather than necessary but low value tasks such as checking that all cross-references appropriately hang together.
However, unless AI develops empathy and EQ, there will always be a place for humans in commercial and legal negotiations.
