This study experimentally evaluates large language models (LLMs) for legal decision-making in Austrian and EU value‑added tax (VAT) law. It compares fine‑tuning and retrieval‑augmented generation (RAG) on textbook and real‑world tax consulting cases to identify optimal LLM configurations and assess legal‑reasoning abilities. Results show that properly configured LLMs can aid tax professionals with routine tasks and provide legally grounded justifications, though they are not yet ready for full automation due to challenges like hallucination and handling implicit client knowledge.
arXiv:2605. 21071v4 Announce Type: replace-cross Abstract: The rapid progress of large language models (LLMs) is shifting semantic search toward a question-answering paradigm, where users ask questions and LLMs generate responses.
The paper surveys how large language models (LLMs) are being applied in legal tasks such as judgement prediction, document analysis, and drafting. It reviews the benefits of automation while highlighting legal challenges like privacy, bias, and explainability. The authors also discuss data resources for legal domain specialization and outline future research directions.
arXiv:2607. 03325v1 Announce Type: cross Abstract: We present an automated pipeline that decomposes Italian tax-court judgments into individual legal issues and extracts, for each issue, a structured XML representation grounded in the IRAC framework and the legal syllogism.
arXiv:2610.02792v1 Announce Type: new Abstract: Legal systems are increasingly implemented through software, yet scalable methods for translating legal texts into accurate symbolic representations re...
This comprehensive study introduces an advanced Artificial Intelligence for Indian Legal Question Answering (AILQA) system tailored to the Indian legal context. AILQA leverages a variety of embedding and generative models, including recent Large Language Models (LLMs), to address the unique challenges posed by the intricate and diverse nature of Indian legal texts and to enhance the accuracy and reliability of responses to legal questions.
Legal systems are increasingly implemented through software, yet scalable methods for translating legal texts into accurate symbolic representations remain underdeveloped. We study this problem throug...
arXiv:2607. 18825v1 Announce Type: cross Abstract: This comprehensive study introduces an advanced Artificial Intelligence for Indian Legal Question Answering (AILQA) system tailored to the Indian legal context.
The paper introduces Gavel, a framework for evaluating large language models (LLMs) on long-context legal summarization tasks. Gavel includes a reference-based component (Gavel-Ref) with checklist, residual-fact, and writing-style checks, and a reference-free component (Gavel-Agent) that assesses factual coverage directly from source documents. Experiments on 12 frontier LLMs reveal that models tend to omit key information more than hallucinate, perform well on simple checklist items but struggle with rare, complex items, and their performance degrades with longer cases. Gavel-Agent cuts token usage by at least 36% compared to traditional methods while maintaining competitive accuracy, and it also generalizes effectively to the medical domain.
The paper investigates how large language models (LLMs) internally encode legal knowledge, specifically the 26 CATO factors used in case-based legal reasoning. Experiments on three open models (Qwen3-1.7B, Qwen3-8B, Gemma-2 2B) demonstrate that all factors are linearly decodable and can be localized to single-layer readouts, with high test AUCs (0.86–1.00). The study identifies 78 model‑specific layer‑feature coordinates, linking symbolic legal abstractions (HYPO and CATO) to learned internal representations in LLMs.
CoAL‑RAG is a complexity‑aware legal retrieval‑augmented generation method that adapts its retrieval strategy based on a multi‑dimensional evaluation of question essence and retrieval consistency. It quantifies reasoning demand from the logical structure of a question and uses the discrepancy between semantic and keyword retrieval to gauge problem complexity, thereby selecting the most suitable retrieval approach and filtering context dynamically. Experiments show that CoAL‑RAG outperforms baseline models on Chinese legal benchmarks (SocialLawQA, LawBench) with a 42.5% BLEU improvement and 3.6× ROUGE‑L, while also achieving strong cross‑jurisdictional performance on English datasets (LexGLUE, CaseHold).
arXiv:2604. 26233v3 Announce Type: replace Abstract: As Large Language Models (LLMs) are proposed as legal decision assistants, and even first-instance decision-makers, across a range of judicial and administrative contexts, it becomes essential to explore how they answer legal questions, and in particular the factors that lead them to decide difficult questions.
arXiv:2606.09389v2 Announce Type: replace Abstract: As large language models (LLMs) are increasingly applied to real-world legal tasks, evaluating the reliability of their open-ended legal responses...