Artificial intelligence (AI) is transforming the practice of law, and “data is the new oil” of the legal industry, panelist Dennis Garcia said at a recent American Bar Association conference.

Garcia is an assistant general counsel for Microsoft in Chicago. Robert Ambrogi, a Massachusetts lawyer and blogger who focuses on media, technology, and employment law, moderated the program.

“The next generation of lawyers is going to have to understand how AI works” as part of the duty of competence, panelist...