Microsoft Copilot for Legal: Gen AI at the Service of Law

In recent years, artificial intelligence has become an increasingly relevant tool across various sectors, including the legal field. Among the most noteworthy innovations is the use of Microsoft 365 Copilot, an AI-powered assistant designed to support legal professionals in a wide range of tasks.

From drafting legal documents to conducting legal research, Copilot aims to simplify complex processes, improve efficiency, and reduce errors—while still playing a complementary role to human work.

This article explores the potential and limitations of this technology in the legal context, analyzing its practical applications.

Microsoft Copilot for Legal: an Introduction

The legal field is extremely delicate and complex—to put it mildly—and anyone working in it can confirm the intense stress that lawyers, paralegals, their staff, and associates face on a daily basis.

While the enterprise sector is no walk in the park either, working in law isn’t just about defending a client’s interests in court or drafting contracts. It also involves meticulous research and a daily struggle with the most tedious and repetitive aspects of office work, besides the bureaucracy of the country where one practices.

Staying up to date on the latest news and trends is crucial, and balancing this need with managing workloads, client communication, and the production of high-quality documents can be incredibly demanding.

In this particularly heavy and chaotic scenario, a Gen AI solution like Copilot can come to the aid.

How exactly? Let’s take a closer look in the next sections.

What is Microsoft Copilot?

Microsoft Copilot is the AI-powered assistant designed to simplify users’ daily tasks, boost productivity, and spark creativity. Its core focus is on code generation, writing assistance, and collaboration. Seamlessly integrated with the most popular Microsoft 365 applications—such as Word, Excel, PowerPoint, Outlook, and Teams—Copilot provides contextual suggestions and helps users effectively understand and work with information.

Powered by the cutting-edge GPT-4 language model, Microsoft Copilot boasts impressive features like code auto-completion, documentation lookup, and collaborative writing. Microsoft continues to update Copilot with new features over time, highlighting how strongly the company is investing in its Gen AI solution for the future of its business-oriented products.

The features of Microsoft’s AI assistant are designed for a wide range of users and professionals, including developers, content creators, and workers looking for AI-powered support in their daily activities.

The main ways to take advantage of Microsoft Copilot are:

• ‍Adopt Copilot: Microsoft offers several Copilot assistants to enhance productivity and creativity. Integrated into various Microsoft products and platforms, Copilot transforms the digital workspace into a more interactive and efficient environment.
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• ‍Extend Copilot: Developers can incorporate external data, streamlining user operations and reducing the need to switch between tools. This not only improves productivity but also encourages greater collaboration. With Copilot, integrating these external data sources into everyday Microsoft products becomes simple.
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• ‍Build your own Copilot: In addition to adoption and extension, it’s possible to create a customized Copilot for a unique conversational experience using Azure OpenAI, Cognitive Search, Microsoft Copilot Studio, and other Microsoft Cloud technologies. A custom Copilot can integrate company data, access external data in real time via APIs, and connect with business applications.

Microsoft Copilot is available in various forms, with pricing packages tailored to different use cases, such as:

• ‍Copilot (Free): The free version of Copilot offers access to generative AI features for PC management (in Windows), online search (in Edge), and general chatbot conversations on the web.
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• ‍Copilot Pro: Designed for individual users who want to fully leverage generative AI. For around $20 per user per month, it provides access to Copilot in tools like Outlook, Word, Excel, PowerPoint, and OneNote.
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• ‍Copilot for Microsoft 365: Tailored for individuals and teams working with Microsoft apps. It includes access to Copilot Studio, enterprise-grade security, privacy and compliance, and advanced capabilities.

Additionally, there are various versions of Copilot built into specific Microsoft tools. For example, there are Copilot solutions embedded in Microsoft Dynamics for sales and customer service teams, and security-focused Copilot tools integrated into Microsoft Purview.

Recently, Microsoft has also started launching and updating a range of “Agents” tailored to specific business sectors such as finance, customer service, and marketing, each equipped with specialized training and capabilities.

Although many Windows 11 users were initially skeptical when Microsoft began focusing on Copilot, the service has grown significantly since its first preview release. Today, it’s regarded as one of the most powerful productivity tools in the age of artificial intelligence.

Microsoft Copilot for Legal: the most common use cases

Now that we've covered the introductory section, let’s get into the heart of the matter and explore how Microsoft’s AI-powered digital assistant can be applied to this specific field of work. It’s not an overstatement to say that Copilot is poised to dominate much of the AI landscape in the legal sector—and the industry is already seeing major benefits from this technology.

Copilot assists with document drafting, legal research, case management, data analysis, and client interaction, with law firms reporting a 30% increase in efficiency and a 25% reduction in time spent reviewing documents.

In this section, we’ll explore four use cases for Microsoft Copilot that can benefit legal professionals.

These are just a few examples of how AI can boost productivity and efficiency, but there are many more possibilities to discover.

Research

One of the most powerful features of Microsoft Copilot is its research capability. Copilot can indeed access and analyze information from across the Microsoft ecosystem—including emails, documents, spreadsheets, PDFs, and more.

It can also be connected to external data sources like legal databases, court records, and news articles. You simply ask a question in natural language, and within seconds it retrieves the most relevant results.

For example, imagine you're working on a contract dispute case and need to find the original contract, the correspondence between the parties, relevant case law, and best practices in the field. Instead of spending hours searching through folders, files, and websites, you can simply ask Copilot:

• "Show me the contract between Company A and Company B."
• "Find all emails related to this contract."
• "Give me a summary of case law on contract breaches."
• "What are the best practices for drafting contracts in this industry?"

Copilot will search your Microsoft 365 files and any connected data sources, providing the answers you need. You can then review the results and decide how to use them in your case. If necessary, Copilot can continue supporting you with follow-up questions or clarifications.

To fully leverage Copilot’s research capabilities, it's important that your data is well-organized and categorized, so the assistant can easily locate relevant information. It's also essential to have proper permissions and policies in place to securely access and share data.

Summarization

Another useful feature of Microsoft Copilot is its summarization capability. It can condense long, complex documents into clear, concise summaries that highlight key points and information. It can also summarize video meeting recordings and transcripts from Teams, capturing the main topics and actionable items.

Imagine now that you’re preparing for a client meeting and need to review a lengthy report on the legal implications of a merger. Instead of reading the entire document, you can simply ask Copilot:

• "Summarize the merger report for me."

It will analyze the report and provide a summary of the key findings, risks, and recommendations, which you can use to prepare for the meeting.

Alternatively, let’s say you’ve just attended a team meeting and need to document the main points and action items. Instead of taking notes during the meeting or relying on memory, you can ask:

• "Generate the minutes of this meeting."

Copilot will review the recording and transcript of the meeting and generate a summary of the key points, including action items and deadlines. You can then share the summary with your team and track progress.

To benefit from Copilot’s summarization feature, you need to ensure that all relevant data is stored in Microsoft 365, rather than on other platforms. It’s also necessary to have the appropriate settings and permissions to record and transcribe meetings in Teams.

Drafting

Microsoft Copilot also excels at generating new content based on provided input and previous drafting examples. It can access information from your existing documents as well as from the internet and the Copilot model itself. This means that when creating written content—such as emails, letters, contracts, or memos—you can rely on Copilot to produce it quickly and accurately.

If you need to write an email to a potential client, inviting them to a consultation, you might have a standard template, but maybe this time you want to personalize it and make it more engaging. You could ask Copilot:

"Draft an email to a potential client based on the template, using their name, company, and legal matter. Include a call to action and a link to book a consultation."

It will use the template and the information provided to create a tailored email for the potential client. You can then review the email and make any changes or additions as needed. Copilot can also help adjust the tone and style of your writing if desired.

Another example would be creating a new contract based on the terms and conditions agreed upon with a client.

You may already have some templates and examples of similar contracts but want to ensure this one is accurate and aligned with the agreed terms. Once again, you can simply ask Copilot:

"Create a new contract based on the templates and examples. Include the XYZ terms and conditions agreed upon with the client, along with relevant clauses and provisions for this type of contract."

It will use the templates, examples, and the information you’ve provided to generate a new contract covering all aspects of the agreement. You can then review it to ensure it meets legal standards and requirements.

To get the most out of Copilot’s drafting feature, it’s important to store documents in shared, well-labeled locations so the assistant can access them easily. It’s also crucial to give Copilot clear and specific instructions to guide it in generating the desired content. Experimenting with prompts can help refine the results.

Automation

The use cases we’ve explored so far are examples of how Copilot can assist with individual tasks. But what if you could combine them to support broader, organization-specific processes?

While automation is not a core feature of Copilot itself, you can build customized workflows by combining Copilot Studio with Power Automate—taking your use of AI within the company to the next level.

Automating business processes saves time and resources, and improves consistency and quality. It also frees up time for tasks that require uniquely human skills, such as strategic thinking, creativity, and communication.

One example of automation is setting up Copilot to execute a sequence of events that regularly occur within your daily workflows, such as:

• Searching for a summary of a document or meeting
• Automatically drafting and generating a document or email based on that summary
• Requesting approval from a manager or client
• Converting the file to PDF or digitally signing it once approved

Another example is integrating Copilot with non-Microsoft solutions you use, such as your CRM, billing software, or document management system. For instance, Copilot could generate automated invoices or client reminders based on data from your CRM or billing platform.

The automation possibilities are nearly endless, so why not consider creating an innovation team within your organization to explore and implement these opportunities?

Microsoft Copilot for Legal: considerations for adoption

Everything sounds great so far, but even though Copilot might seem like an obvious purchase, it's still important to consider a few factors before taking the leap.

Law firms and corporate legal departments rely on accuracy, confidentiality, and seamless integration with their existing tools—and a sudden change could lead to unexpected issues.

That’s why thoroughly testing Microsoft 365 and Copilot is essential to avoid abrupt operational disruptions and security risks.

Here's what one need to keep in mind:

• ‍Monthly updates: Microsoft Copilot requires acceptance of monthly M365 updates. Each update may affect the functionality of Office applications and related add-ons, requiring thorough testing to ensure compatibility and stability—especially when used on customized laptops.
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• ‍Data integrity: Legal practices handle vast amounts of sensitive data. Ensuring that Copilot processes and integrates data accurately and securely is crucial for maintaining the integrity of legal documentation and client communications.
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• ‍eDiscovery implications: Copilot generates new content that must be easily retrievable for legal proceedings. Proper testing ensures that this data is stored correctly, remains searchable, and can be efficiently managed during eDiscovery processes.
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• ‍Performance: Testing evaluates how Copilot performs under various conditions, ensuring it can meet the demands of a busy legal environment. This includes managing emails, drafting documents, and summarizing meetings—ultimately boosting productivity and reducing manual workload.
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• ‍User experience: Ensuring that Copilot is user-friendly and tailored to the specific needs of legal professionals improves adoption rates and productivity. Testing helps identify and resolve any usability issues, ensuring smooth integration into daily workflows.

Conclusion

Since its initial launch, Microsoft has made it clear that Copilot was designed to simplify work across a wide range of industries—and this was far from empty marketing. Microsoft’s assistant, which began making major strides over the past year, is now being used in a variety of fields, and the legal sector is no exception.

The ability to streamline everyday tasks has the potential to transform the work of lawyers and paralegals, helping them save valuable time and focus more on the strategic aspects of their profession—something that wasn’t truly possible before.

Law firms around the world, initially skeptical about the potential of Gen AI, are now re-evaluating their stance as they recognize the tangible benefits Copilot can bring to their daily operations.

And for many, this is just the beginning of a deeper integration.

FAQ on Microsoft Copilot in the legal sector

What is Microsoft Copilot for Legal?

‍"Copilot for Legal" is not a standalone product, but a term used to describe how Microsoft Copilot's features are applied in the legal sector. It refers to the use of generative AI in typical legal workflows, supporting tasks such as document drafting, legal research, and meeting management.

Can Copilot replace the work of legal professionals?

‍No, Copilot is designed to complement—not replace—the work of legal professionals. Its purpose is to reduce the operational workload, minimize errors, and simplify access to information, while keeping the lawyer fully in control of the content and decision-making.

What are the main benefits of using Copilot in the legal field?

‍Using Copilot saves time in information retrieval, provides instant summaries of complex documents or meeting transcripts, generates drafts of emails or contracts from existing templates, and even helps automate routine workflows. All of this enhances efficiency and reduces the mental load associated with repetitive tasks.

Is Copilot integrated with common Microsoft tools?

‍Yes, Copilot is fully integrated into the main Microsoft 365 applications such as Word, Excel, Outlook, PowerPoint, and Teams. Legal professionals can work with Copilot directly within the tools they already use every day, without having to change platforms.

How can Copilot be used securely and compliantly in legal environments?

‍To ensure secure and compliant use, data should be well-organized and stored within the Microsoft 365 environment. Proper access and data retention policies should be applied, Copilot’s behavior should be tested before wide-scale adoption, and any AI-generated content must be easily discoverable for legal purposes, including eDiscovery.

Can Copilot access external data?

‍Yes, Copilot can be extended to access external data sources such as legal databases, CRMs, document management systems, and more. This enhances its capabilities and allows it to deliver more tailored responses based on organization-specific data.

Is a specific version required to use Copilot in the legal sector?

‍There is no version dedicated to legal professionals, but using Copilot for Microsoft 365 is recommended to take full advantage of advanced features, enterprise-grade security, and customization through tools like Copilot Studio.

Is Copilot also useful for small law firms or just for large organizations?

‍Copilot is beneficial for both large law firms and solo practitioners or small legal teams. By offloading repetitive or low-value tasks to AI, professionals can focus on more strategic work and better manage their time—regardless of firm size.

Is Copilot already being used in the legal industry?

‍Yes, many law firms and legal departments have already started using Copilot in their workflows. Early results show a significant increase in operational efficiency and a reduction in document review time, with clear improvements in productivity and service quality.