A legal database linked to Peking University has launched a large language model tool it claims can accurately retrieve statutes and automatically generate contracts. This development is sending ripples through China's legal profession as AI-powered systems begin to encroach on tasks traditionally handled by lawyers.

The tool can draft convincing legal documents in seconds, but without rigorous oversight it is equally adept at inventing statutes and fabricating precedents. That liability has historically kept such systems on the sidelines in high-stakes fields like medicine and law.

The system's capabilities raise immediate questions about which legal roles may become obsolete. Junior lawyers who perform routine document review and contract generation are most exposed to disruption, while seasoned litigators who rely on courtroom judgment and client relationships are likely safer.

China's legal sector joins a growing list of industries confronting automation. The bar for safely deploying these tools remains high, and incidents of AI hallucination — where models generate false information with confidence — could slow adoption in risk-averse legal settings.

Experts caution that unverified outputs could expose firms to liability, tempering the enthusiasm around efficiency gains.