AI and the Law – Developments, Risks & the Malaysian Legal Landscape
What is Artificial Intelligence (AI)?
Generally, AI refers to the simulation of human intelligence in machines that are programmed to think and learn like humans.
These systems can perform tasks such as learning, problem-solving, and decision-making.
Where AI is being used? – In our everyday lives, through:-
Virtual Assistants like Siri, Alexa, and Google Assistant —respond to voice commands and provides information.
Navigation Apps: Google Maps and Waze optimize routes and forecast traffic using AI;
Chatbots: Websites deploy AI chatbots for customer services and user guidance;
Facial Recognition: Commonly found in smartphones, access control, and security systems.
AI in Legal Practice :-
In Legal Research :-
Tools such as Lexis+ AI and CaseText use automatic citation analysis, natural‑language search, and recommends authority generation—which significantly saves time and improves accuracy.[1]
In Reviewing Document :-
Platforms such as Luminance and Kira Systems also assist lawyers with desired clause extraction[1], compliance checking, due diligence, and risk identification —wherein it streamlines labour-intensive tasks altogether.
In Predictive Analytics :-
Tools including, Lex Machina[2], and Blue J Legal and Premonition analyse past cases, predict outcomes, — helping lawyers to assess litigation risks more strategically in Full Trial and other instances.
In Reviewing Document :-
Platforms such as Luminance and Kira Systems also assist lawyers with desired clause extraction4 , compliance checking, due diligence, and risk identification —wherein it streamlines labour-intensive tasks altogether.
In Predictive Analytics :-
Tools including, Lex Machina5, and Blue J Legal and Premonition analyse past cases, predict outcomes, — helping lawyers to assess litigation risks more strategically in Full Trial and other instances.
AI in the Malaysian Legal & Governance Context :-
Current Adoption
In Malaysia, e-Court system, e-Review, Court Recording Transcription System (CRT) may serve as a foundation.
Governance & Policy Frameworks
Malaysia operates under National AI Roadmap (2021–2025), regulated by Ministry of Science, Technology and Innovation (MOSTI), and introduced National Guidelines on AI Governance & Ethics (AIGE) in September 2024. These voluntary guidelines outline seven ethical principles—fairness, accountability, privacy, transparency, safety, inclusiveness and human benefit.
In 12th December 2024, the Ministry of Digital has launched National Artificial Intelligence Office (NAIO)7 via MyDIGITAL to formulate AI policy and regulations.
What about legal risks and professional considerations that one need to take into account?
Who is liable when AI is involved? AI cannot be a legal person—thus the liability likely rests with the user or deployer.
AI-generated evidence — shall in line with Evidence Act 1950 standards: these evidences are subject to questions of hearsay, authenticity8 , and expert qualification.
Personal Data Protection Act 2010 (PDPA 2010) Compliance – Primarily, AI must adhere to consent, purpose limitation, and data security rules. In reality, PDPA doesn’t require how AI decisions are arrived 9 —a problem for “black box” systems, making it troublesome to understand or challenge decisions. Further, PDPA also lacks explainability on AI’s automated decision-making (ADM) or profiling.10 One possible solution to this is by introducing a legal obligation for AI deployers to provide meaningful explanations of automated decisions — similar to the EU’s GDPR Article 22). Our Country could also consider updating the PDPA to include clear provisions on AI profiling and algorithmic accountability.
What’s the Nation Role ? —Prepare for the Future
We should stay ahead in Malaysia’s evolving AI-legal landscape by upskilling, —enroll in AI courses or government initiatives like “AI Untuk Rakyat”.11 Stay Current—monitor developments in AIGE, the proposed AI Bill, and the formation of AI-focused legislations.—Engage Stakeholders—Collaborate with regulators, policymakers, and civil society and participate in AI ethics programs for consultative input.
Conclusion
AI is becoming an integral part of our daily lives and legal work, offering efficiency in research, drafting, and analysis. As Malaysia moves toward clearer AI regulations, concerns are remained on liability, admissibility of evidence, and the lack of safeguards for automated decision-making and others. Thus, all of us—should engage with AI thoughtfully, with attention to fairness, accountability, and evolving standards.
By Hemananthini Chellakanna Pillai – 20th August 2025 (Seremban Branch Litigation Lawyer)
