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Review

The role of AI in sourcing and mining data to identify, secure and manage relevant evidence: Is it really the panacea it claims to be?

Sep 2026 · Journal of financial compliance · 0 citations

Abstract

The rapid expansion of digital data has transformed the demands of modern legal practice, particularly in investigations, regulatory enquiries, and disputes. This paper examines the evolving role of artificial intelligence (AI) — especially generative AI (GenAI) — in sourcing, analysing, and managing evidence within this increasingly complex landscape. While traditional AI tools such as predictive coding and machine learning classifiers have long supported document review, emerging GenAI capabilities now enable the drafting of summaries, extraction of themes, and generation of structured narratives from large, diverse datasets. Against the backdrop of the UK’s sector-led, principles-based approach to AI regulation, the paper explores how legal and compliance teams can use AI responsibly while maintaining essential safeguards relating to accountability, transparency, fairness, and auditability. It outlines the benefits of AI across e-discovery, evidence triage, communication monitoring, privilege screening, and regulatory response preparation, drawing on practical examples from recent large-scale legal matters. At the same time, it offers a clear-eyed assessment of AI’s limitations. The paper highlights risks linked to data quality, admissibility, bias, privacy, and cross-border processing, as well as the inherent opacity of GenAI systems. It underscores why experienced human oversight remains indispensable, both to validate AI outputs and to ensure that nuanced legal judgments, including those on privilege and proportionality, are not compromised. Readers will gain practical insight into the capabilities and boundaries of AI in evidence management, learn how to integrate AI tools safely and effectively within governance frameworks, and understand the skills — such as prompt engineering and critical oversight — required to harness these technologies with confidence and rigour. This article is also included in The Business & Management Collection which can be accessed at http://hstalks.com.business/.

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