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Legal scenarios

Legal AI evaluation scenarios — contract review, legal research, document discovery, document automation.

Legal AI's defining failure mode is the fabricated citationMata v. Avianca, Inc. (S.D.N.Y. 2023) is the canonical reference for sanctioned attorney misconduct stemming from AI-generated hallucinations. Every scenario below treats verifiability as the first-order property.

Contract review and analysis

Setup: AI reviews contracts to identify key clauses, flag non-standard terms, compare against a playbook, and suggest redlines.

Why evaluation is hard: material clauses can be buried in cross-references (e.g., Section 8.2(a) referencing Exhibit B, Paragraph 4) — the AI catches "unlimited liability" in plain text but misses the structural reference.

Stakes: missed unfavorable clauses (unlimited liability, auto-renewal, IP assignment); malpractice for law firms; financial exposure for in-house teams.

Eval criteria:

  • Clause-recall scorer — every material clause from the attorney-annotated set must surface

  • Cross-reference judge (GEPA-tuned ≥50 examples) — clauses defined via structural references are correctly resolved

  • Risk-classification judge — risk-tier matches attorney verdict

  • Hallucinated-clause-text rule — generated redline text must match clause-source text where quoted

Setup: AI researches case law, statutes, and regulations to support brief drafting and answer legal questions.

Why evaluation is hard: Mata v. Avianca and successor cases mean every fabricated citation in a filing is a sanctionable event — regardless of whether anyone caught it before submission.

Stakes: court sanctions per Mata; bar discipline; malpractice exposure; reputational cycle (ABA Journal coverage of every public sanction).

Eval criteria:

  • Citation-existence custom code grader — every cited case looks up against an authoritative legal database; any missing = fabricated. Hallucination rate must be 0% for the evaluation to pass.

  • Holding-accuracy judge (GEPA-tuned ≥50 attorney-labeled examples — scored output) — does the cited case actually stand for the proposition the AI claims?

  • Quote-accuracy scorer — quoted passages match the source verbatim

  • Jurisdictional-relevance judge — citations are from the right court/jurisdiction for the brief

  • Recency / overrule-detection scorer — never cites overruled cases (matched against a treatment database)

Discovery / e-discovery review

Setup: AI reviews documents for relevance, privilege, and responsiveness in litigation discovery.

Why evaluation is hard: the AI may correctly process body text but miss content in embedded tables and scanned attachments — relevant material in a different modality slips through.

Stakes: spoliation sanctions ($10K-$1M+); privilege waiver (catastrophic disclosure); inability to defend production proportionality.

Eval criteria:

  • Relevance recall scorer — must be >95% for defensibility

  • Privilege-detection judge (GEPA-tuned ≥50 examples) — attorney-client and work-product detection accuracy

  • Multimodal-coverage scorer — embedded tables, scanned attachments, image OCR captured (not skipped)

  • PII / personal-data detection scorer — ≥99% for GDPR / CCPA contexts

  • Inter-reviewer consistency scorer — Cohen's kappa or equivalent for reviewer agreement

Contract / document automation

Setup: AI drafts contracts, NDAs, and legal documents from templates + case-specific inputs.

Why evaluation is hard: template substitution errors are easy; tone, voice, and jurisdictional appropriateness require subjective judgment.

Stakes: unenforceable contracts; embarrassing template artifacts ("[CLIENT NAME]" in published doc); jurisdictional mismatches.

Eval criteria:

  • Template-substitution scorer (custom code) — every placeholder filled; no leftover markup

  • Jurisdictional-applicability judge — clauses match the governing-law jurisdiction

  • Voice / tone judge — matches firm's house style

  • Cross-reference integrity scorer — internal section references resolve correctly

Compliance / regulatory analysis

Setup: AI analyzes regulatory texts, drafts compliance memos, and identifies obligations from new regulations.

Why evaluation is hard: regulatory text is dense, hierarchical, and context-dependent. Stale regulatory interpretation (citing superseded guidance) is a frequent failure.

Eval criteria:

  • Regulation-currency rule — cited regulation version must match the active version (document-hash check)

  • Obligation-extraction scorer — every actionable obligation identified, classified by deadline / who-must-act

  • Faithfulness judge — every claim cites a specific regulation section

  • Plain-language judge (GEPA-tuned) — output translates regulatory text appropriately for the audience

See also

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