But isn’t this study saying that the legal advice could actually be better with AI?

A bit of extrapolation from the study, but not a crazy stretch.

Maybe, although I would be extremely hesitant to extrapolate from this one study and trust my legal life to an LLM. One thing that's worth noting, though, is that regardless of the quality of objective legal advice in the abstract, for a lot of smaller scale stuff the human connection actually is literally what is important. There are ambiguities in the law, which are not resolved deterministically but rather at the individual discretion of judges. Your lawyer, if they're any good at their job, knows the local judges and how they're likely to rule for given circumstances, which can influence their legal advice to you specifically.

Fair.

But I could also see a world where that, too, is fed to models for hyper-local results.

Could be a way off, but I could see it.