Imagine an AI that could predict the outcome of a court case. Researchers in India are making this a reality with "PredEx," a groundbreaking AI system designed to analyze and predict judgments within the Indian legal system. India's courts face a massive backlog of cases, and PredEx offers a potential solution by providing faster and more efficient legal analysis. PredEx uses a vast dataset of over 15,000 annotated legal documents—the largest of its kind in India. This data trains sophisticated AI models to understand the nuances of legal language and predict outcomes with increasing accuracy. Unlike previous AI systems focused solely on predicting outcomes, PredEx explains its reasoning. It highlights the key sentences and arguments within a case to provide insights into how it reached its decision, which is a crucial step towards transparency in AI-driven legal processes. The system combines two innovative approaches: identifying pivotal sentences within case proceedings and generating abstract reasoning similar to a human lawyer. Researchers used various tests, including lexical similarity checks, semantic analysis, and expert reviews to validate its accuracy. While traditional language models still outperform Large Language Models (LLMs) like those behind ChatGPT, LLMs show promising results, especially with instruction tuning on the PredEx dataset. This specialized training improves their ability to understand legal text and reduce inaccuracies, or 'hallucinations,' often found in AI-generated text. One of the key challenges is the limited availability of expert-annotated data due to its high cost. Despite this limitation, expert evaluations show that the tuned LLMs produce high-quality explanations, often comparable to human experts, scoring a 4 out of 5 on average. Further research is needed to develop specialized LLMs for the Indian legal domain and improve their understanding of legal reasoning and broader contexts. While there are limitations, PredEx marks a significant step towards AI-assisted legal decision-making and offers a potential solution to India’s legal backlog, promising a future of greater efficiency and transparency in the justice system.