Binance’s Zhao urges governments to simplify laws with AI tools

Binance founder and former CEO Changpeng Zhao has urged national governments to explore the use of artificial intelligence tools, particularly large language models (LLMs), to simplify their legal systems.

In a July 10 post on X, Zhao argued that AI could play a key role in making legal codes more understandable and accessible to everyday citizens.

According to him, many countries have accumulated layers of complex, conflicting laws over time that legal professionals often shape through patchwork amendments.

Due to this, the current legal systems have become “gigantic, patched, added, and often intentionally made complex.”

Zhao pointed out that this has made it nearly impossible for non-lawyers to fully comprehend their rights and obligations.

However, he believes that this could change with the advent of LLMs.

Large language models are advanced AI systems like OpenAI’s ChatGPT that could be trained on extensive legal text. This would allow these tools to read, analyze, and rewrite dense legal documents into simplified formats.

As a result, these AIs could detect inconsistencies, streamline clauses, and interpret technical language, which could help make the law more accessible to everyday users.

AI won’t replace lawyers

Despite his enthusiasm, Zhao clarified that AI should not be seen as a substitute for human lawyers.

Instead, he positioned these technologies as assistants that could handle routine tasks while freeing up legal professionals to focus on more complex, high-stakes work.

According to him:

“There could be a 1000 companies building spaceships vs only a couple now. We can test more drugs to cure cancer. Flying cars… All of them need tremendous amounts of legal work.”

Meanwhile, market observers cautioned that while LLMs offer tremendous utility, they have flaws.

Current iterations still face challenges such as hallucinations or situations when the AI generates incorrect or misleading information. They argued that this reinforces the continued need for legal professionals who can interpret, verify, and contextualize the law.

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