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Harnessing AI in Legal: Why a Data Lake is the Foundation

Law firms are increasingly adopting AI to drive efficiency, reduce costs, and improve outcomes across legal practice areas. At the heart of successful AI adoption is the right data infrastructure, and that starts with a robust, scalable data lake

What Is a Data Lake? 

A data lake is a centralized repository that allows you to store vast volumes of data, structured (like SQL or Excel), semi-structured (such as JSON or XML), and unstructured (including emails, PDFs, video, and audio), at any scale, without needing to define a rigid schema (a map or a plan for a database or dataset) upfront. 

AI thrives on large, diverse datasets. A data lake is particularly well-suited to legal organizations because it provides: 

  • Scalability to train AI models on massive datasets 
  • Flexibility to handle multiple data types from different legal systems 
  • Adaptability to evolving AI use cases across departments 

In today’s landscape, law firms and legal departments are looking to unlock the full potential of AI. The first step is building the data foundation necessary for success. As such, it is critical for legal organizations to centralize and ingest a wide range of data sources, including: 

  • Case management systems (e.g., Litify, Actionstep) 
  • Document management platforms (e.g., NetDocuments, iManage) 
  • Emails, chats, transcripts, and external datasets (e.g., PACER, SEC filings) 

Firms can leverage enterprise-grade tools like Apache NiFi, AWS Glue, and Azure Data Factory, and more, to streamline ingestion and ensure data integrity across systems. 

Once centralized, they’ll need to implement a governance framework, including metadata tagging, access controls, and compliance with HIPAA, GDPR, and other regulations—to ensure data is secure, discoverable, and compliant. 

From there, legal teams should do their due diligence to clean and transform the data using modern ETL/ELT processes, such as format normalization, de-duplication, and OCR/NLP to make legal documents analyzable by AI. 

Organizing with the Medallion Architecture 

To make data actionable for reporting, applications, and AI, firms should look to deploy a proven Medallion Architecture methodology: 

  • Bronze Layer (raw data): Like gathering all your LEGO bricks in one place, data is ingested but unprocessed. 
  • Silver Layer (cleaned data): Similar to sorting LEGOs by color and shape, data is cleaned, deduplicated, and standardized. 
  • Gold Layer (ready-for-use data): Like assembling a finished LEGO creation, data is modeled, validated, and optimized for use in dashboards, applications, or AI models. 

This structure sets out a repeatable, scalable approach to data transformation, powering smarter legal operations. 

From Foundation to AI Enablement 

With a trusted data foundation in place, you’ll need to support the development and deployment of AI models tailored to your firm’s specific goals, whether it’s: 

  • Store millions of pleadings, contracts, and emails for AI-powered search and analysis 
  • Build GPT-based assistants that draft responses using firm precedent 
  • Train litigation outcome predictors using historical dockets and billing data 
  • Transcribe and analyze deposition video/audio for inconsistencies and key insights 
  • Extract clauses, flag deviations from contract templates, and assess risk 
  • Enable rapid eDiscovery and cross-reference against legal holds 
  • Monitor attorney productivity through real-time dashboards 
  • Flag sensitive terms or anomalies for regulatory compliance 
  • Detect billing inefficiencies (e.g., block billing, overstaffing) 
  • Identify new opportunities or at-risk clients through AI-powered business analytics 

From architecture to execution, Sikich can be your strategic partner in transforming legal data into intelligent, AI-ready assets that accelerate value and decision-making. Ready to build your firm’s AI foundation? Let’s start with the data. 

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

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