Review any Contract With AI Before you Sign it

Try For Free Now

Build Local Employment Contracts

Build For Free
6
min. read

How Accurate Is Legal AI in 2025?

By
Jeffrey D
Lawyer and Advocate
Last update:
August 28, 2025

Review any Contract With AI Before you Sign it

Build Local Employment Contracts

The central question for legal tech remains simple: can AI be accurate enough to be trusted with real legal work?

For years, the answer leaned toward "not yet." Accuracy was inconsistent, workflows were brittle, and adoption lagged. But recent data tells a different story. The latest LegalBench benchmark (July 29, 2025) shows multiple models clearing the 80% accuracy bar on complex legal reasoning tasks. At the same time, MIT’s State of AI in Business 2025 Report highlights legal AI as one of the few real business use cases delivering measurable ROI.

Together, these developments point to a clear shift: legal AI isn’t hype anymore - it’s working.

Benchmark Results: Legal AI Models Above 80%

The July 2025 LegalBench results measured how leading models handled contract interpretation, statutory reasoning, and hypothetical scenarios.

Key outcomes:

  • GPT-5: 84.6% accuracy

  • Gemini 2.5 Pro: 83.6%

  • Grok 4: 83.4%

  • GPT-4.1: 81.9%

  • Gemini 2.5 Flash: 82.8% at sub-second latency

For the first time, several models are clustered above 80%. This matters: it shows that legal reasoning is no longer an experimental capability - it’s becoming a baseline standard.

https://www.vals.ai/benchmarks/legal_bench-07-29-2025

Beyond Accuracy: Speed, Cost, and Task Fit

Accuracy is crucial, but deployment depends on other trade-offs:

  • Depth vs. speed: GPT-5 handles complex reasoning but is slower and costlier.

  • Latency vs. scale: Gemini Flash is optimized for near-instant responses.

  • Consistency vs. affordability: GPT-4.1 continues to be strong for routine analysis.

This diversity means the most effective approach isn’t picking a “winner,” but assigning different models to different tasks.

How goHeather Segments Models for Legal Work

That’s exactly how goHeather approaches legal AI. Instead of relying on one system, it uses a segmented orchestration strategy:

  • GPT-5 → high-stakes reasoning (jurisdiction, red-flag risks)

  • Gemini 2.5 → real-time tasks (clause extraction)

  • GPT-4.1 → repeatable, playbook-driven reviews

This architecture balances accuracy, cost, and speed while mapping the right tool to the right stage of legal work.

Why Legal AI Stands Out: MIT’s State of AI in Business

While accuracy benchmarks look strong, the bigger story is that legal AI is one of the only areas where generative AI is breaking through in real enterprise settings.

MIT’s State of AI in Business 2025 Report analyzed 300+ AI projects across industries. Its key finding: despite $30–40B in investment, 95% of enterprise AI pilots fail to deliver ROI. The researchers call this the GenAI Divide:

  • 80%+ of organizations have piloted AI tools like ChatGPT or Copilot.

  • Only 5% of enterprise-grade deployments reach production with measurable P&L impact.

  • Failures usually stem from brittle workflows and lack of contextual learning.

Yet within this bleak adoption picture, professional services (including law) are one of the few sectors showing measurable efficiency gains.

Why?

  • Legal work is text-based: a perfect fit for LLMs.

  • ROI is clear: fewer review hours = immediate savings.

  • Integration is straightforward: workflows are already digital, not physical.

This explains why benchmarks like LegalBench show traction, while most other industries remain stuck.

https://mlq.ai/media/quarterly_decks/v0.1_State_of_AI_in_Business_2025_Report.pdf

What Lawyers Should Take Away

The convergence of these reports suggests three things for legal professionals:

  1. Accuracy is no longer the barrier. Multiple models reliably pass the 80% threshold.

  2. Segmentation is the winning strategy. Orchestrating different models for different tasks delivers better results than betting on a single LLM.

  3. Law is a top AI use case. Against a backdrop where most AI projects fail, legal is proving to be one of the most adaptable and ROI-positive domains.

Closing

Most of AI in business is still in pilot purgatory. But in law, the numbers show real progress. Benchmarks are crossing 80% accuracy, vendors are segmenting models for fit, and legal workflows are delivering measurable ROI.

That makes legal AI not just a promising experiment, but one of the strongest evidence points for generative AI working in practice.

👉 View LegalBench results
👉 Read MIT’s State of AI in Business 2025 Report

About the author

Jeff is a lawyer in Toronto and he is a co-founder of goHeather. Jeff is a frequent lecturer on commercial and employment law and AI for law firms, and is the author of a commercial law textbook and various trade journal articles. Jeff is interested in business, technology and law.

By
Jeffrey D
Lawyer and Advocate

Stay Updated on All Things Contract Law with goHeather

Get the latest contract tips, updates, and exclusive content straight to your inbox. Subscribe now and never miss out on what's new in contract law or at goHeather!

Thank you! You will receive an email to confirm your subscription.
Oops! Something went wrong while submitting the form. Try again later.

Review any Contract With AI Before you Sign it

Our AI sifts through each clause, identifying potential risks. This enables us to provide quick yet comprehensive contract reviews, equipping you with the legal information you need to make informed decisions.

Build Local Employment Contracts

goHeather enables you to quickly create local employment contracts using lawyer-made templates. Our contracts include a free e-signature feature and provide access to a dashboard for managing all your employee contracts and key details.

Related articles