A Comparative Study of Large Language Models for Named Entity Recognition in the Legal Domain

Named Entity Recognition (NER) in the legal domain presents unique challenges due to specialized terminology and complex linguistic structures inherent in legal texts. While large language models (LLMs) like GPT-4, Llama-3, and others have significantly advanced natural language processing, their effectiveness in domain-specific tasks like legal Named Entity Recognition remains underexplored. This study conducts a comprehensive comparative analysis of eleven state-of-the-art LLMs on legal NER tasks across seven diverse datasets in five languages, namely English, Portuguese, German, Turkish, and Ukrainian. We evaluate the models’ performance using F1 scores, focusing on their ability to accurately identify and classify legal entities. Our findings reveal significant variability in LLM performance across different languages and legal contexts, with proprietary models like GPT-4 achieving the highest overall scores. The results highlight the influence of model architecture, dataset characteristics, and prompt design on the effectiveness of legal NER tasks. This study provides valuable benchmarks for legal NER applications and offers insights into the strengths and limitations of current LLMs, guiding future research and development in legal natural language processing.