Welcome to your Law Tech briefing for Aug 23, 2023, covering what happened in legal tech recently.
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Have less than a 1 min? Three takeaways from yesterday
- Integration of AI in Legal Technology: An increasing number of legal technology companies are integrating AI into their services for enhanced automation, productivity, and data security. iManage, BigHand, and Relativity have all shown significant advancements in this area. For legal knowledge workers, understanding how to leverage these AI tools effectively should become a crucial skill set.
- Adoption of AI and Cloud-Based E-Discovery: A growing trend in the industry involves the adoption of cloud technologies and AI for e-discovery. As the industry continues to mature and these technologies become standard, law firms could gain a competitive edge by investing in both AI and cloud technologies.
- AI Shaping Job Roles and Skill Requirements: AI continues to influence job roles within the legal industry, creating new potential services, skills, and career paths. Legal professionals should seize the opportunity to expand their skills with AI capabilities, notwithstanding resistance to change from certain quarters, since the potential benefits seem to outweigh any present issues.
Here's what happened in legal tech recently...
There were some AI announcements from industry giants such as iManage, BigHand, and Relativity as interesting reports. iManage introduced iManage AI, which uses Microsoft Azure OpenAI Service to analyze, extract data, and categorize emails with remarkable accuracy. The AI engine allows natural language queries with a ChatGPT-style interface. BigHand integrated AI functionality from its acquisition, BigHand Impact Analytics, into its matter pricing solution for the law industry. The AI tool uses timecard data to guide pricing decisions, enhancing profitability and transparency for clients. Relativity launched Relativity Contracts, a tool for contract analysis and due diligence within its RelativityOne platform. The AI tool claims to slash review time by 40% and cut project costs by half.
The use of artificial intelligence across the legal technology industry is picking up steam. The early adopters capitalize on AI's capabilities to enhance automation, productivity, and data security, as seen with firms such as BigHand and iManage. The trend is also moving towards Generative AI, as demonstrated by HaystackID appointing a Chief Artificial Intelligence Officer to supervise AI integration into legal technology services. Moreover, the rising demand for AI is highlighted in Everlaw's "2023 Ediscovery Innovation Report," revealing that 40% of legal professionals are utilizing or plan to use, AI technology. Another trend underlining the impact of AI is the integration of AI into law firms' pricing strategies.
The legal sector continues to grapple with the balance between embracing AI innovations and addressing concerns such as accuracy, security, and ethical deployment. While industry professionals acknowledge AI's transformative potential, significant concerns remain, mainly about data security, underlining the necessity for robust data governance tools. Furthermore, survey findings indicate a link between cloud adoption and AI usage. As the industry matures with AI and cloud-based e-discovery becoming the norm, investments in AI and cloud technologies might determine a firm's competitive edge. AI also continues to influence job roles and skill requirements within the legal industry, with professionals optimistic about AI's potential to create new services, skills, and career paths. However, resistance to change, particularly from government professionals, might slow down AI adoption. To conclude, artificial intelligence continues to reshape the legal technology landscape, with industry leaders and startups both investing heavily in this domain. While the road to full acceptance and integration of AI in legal practices remains challenging, the potential benefits seem to outweigh the associated concerns.
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273 Ventures has introduced a massive dataset, Kelvin Legal DataPack, of over 150 billion tokens of essential legal, regulatory, and financial content. The dataset, designed to help organizations build or customize data models, resolves challenges of clear provenance, commercial use rights, aiding everything from embedding models training to tune-ups. This development comes amid growing controversy around tech companies allegedly infringing intellectual property laws for model training purposes. The Kelvin Legal DataPack also includes annotated and supplemented content to cater to diverse use cases. Customers can also access specialized collections like the Kelvin Contract DataPack. The dataset offers an assurance of no IP or contract breach through the reuse of data, a focus particularly important given recent lawsuits faced by AI firms over data usage.
A recent survey by LexisNexis involving 7,950 lawyers, law students, and consumers across the U.S., U.K., Canada, and France revealed a perception gap regarding the impact of AI in the legal field. According to the International Legal Generative AI Survey, while almost 50% of respondents in the U.K., Canada, and France believe AI will have a significant or transformative impact on law, only 39% of U.S. respondents agreed. This discrepancy may be due to prevailing media sentiments in each country. The two countries that perceived the greatest potential impact, France and Canada, demonstrated contrasting attitudes, with France recording the highest proportion of unsure respondents. Meanwhile, the majority seemed intrigued by AI's potential for drafting legal documents and approximating research tasks. Despite the controversy surrounding AI, it appears inevitable that it will shape the future of law.
Thomson Reuters Future of Professionals Report Predicts AI will Have a Transformational Impact on Professional Work by 2028 (Legal Technology News - Legal IT Professionals | Everything legal technology)
Thomson Reuters recently released its Future of Professionals Report, which shows a majority of professionals (67%) believe AI will have a transformational or high impact on their profession within the next five years. The report was based on a survey of over 1,200 international workers. Importantly, most respondents (66%) also predict that AI will create new career paths, especially in roles that don't require traditional legal or tax qualifications. According to the survey, the largest hope for AI (45%) was in improving productivity, efficiency, and client services. However, concerns remain about issues like data security, accuracy of results, job loss, and ethical considerations. As a result, building AI solutions that are trustworthy, transparent, and address user's main pain points will be central to widespread adoption.
iManage has introduced iManage AI, an artificial intelligence engine incorporated into its cloud platform using Microsoft Azure OpenAI Service. The engine can analyze documents, extract essential data, and categorize emails with over 90% accuracy. It can identify approximately 30 different contract types and allows users to interact with their data through a ChatGPT-style interface. Users can also inquire about their documents using natural language, and the AI provides responses with references.
BigHand has incorporated AI functionality from its acquisition, BigHand Impact Analytics, into its matter pricing solution for the legal market. The AI tool uses timecard data to guide pricing decisions, enhancing profitability and transparency for clients. This integration will allow law firms to price their services more effectively using reliable data. The move is part of BigHand's strategy to improve its AI capabilities in the legal industry.
Document management firm iManage has unveiled iManage AI, an artificial intelligence (AI) search engine embedded in its cloud platform. The tool uses AI models trained on numerous legal documents to analyze and extract crucial data, aiming to boost productivity and data security. iManage has also launched governance tools to maintain data confidentiality and regulatory compliance. The system is currently undergoing testing in an Early Access Program.
E-discovery company, Relativity, has launched a contract analysis and due diligence tool, Relativity Contracts, within its cloud platform, RelativityOne. Unveiled at ILTACON, the tool uses AI to help users meet regulatory requirements, reduce legal risk, and enhance business value. It can reduce review time by 40% and cut project costs by half. Additionally, Relativity is testing GPT-4 via Microsoft Azure's OpenAI service, planning to debut new products using this technology at the upcoming Relativity Fest in Chicago.
A survey by Everlaw, ACEDS, and ILTA found that 40% of U.S. legal professionals are using or planning to use AI tools, with 51% believing AI will have a positive impact on the profession. However, 72% feel the industry is not ready for AI, citing concerns over inaccuracy (44%), lack of understanding of AI workings (17%), and security (14%). The report also highlighted a connection between cloud adoption and AI use, with 95% seeing cloud-based e-discovery as the future standard.
The International Legal Technology Association's annual event highlighted a changing perspective on AI in the legal sector. While AI is not yet capable of replacing lawyers, it is viewed as a potential game-changer in the industry. However, gaining acceptance from practicing attorneys is proving difficult. Despite most Am Law 100 firms exploring AI, it is unclear whether they are seriously considering its implementation or if the exploration is limited to their tech professionals.
The International Legal Technology Association Conference (ILTACON) is underway in Orlando, focusing on AI, the future of legal profession, and legal tech. The event features the ILTA Buddy Program, keynote speeches, sponsor booths, and entertainment. It serves as a platform for legal tech companies to discuss the influence of technology on the legal industry.
The article argues against a complete ban on generative AI tools in law firms, citing benefits like quick and accurate document drafting. It suggests that banning could lead to covert AI usage. The recommendation is for law firms to establish a detailed AI policy that guides ethical AI deployment, data privacy, and client confidentiality. The policy should promote training and ongoing dialogue, be regularly updated, and encourage a culture of competence and integrity.
HaystackID, an eDiscovery services firm, has named John Brewer as its Chief Artificial Intelligence Officer. Brewer will oversee the firm's integration of AI and Generative AI into the legal technology services industry. HaystackID's AI-based services, including Global Managed Review and Protect Analytics AI™, focus on data privacy, protection, and security, and are key components in the eDiscovery field.
Everlaw's "2023 Ediscovery Innovation Report" reveals a rising demand for generative AI in the legal sector, with 40% of professionals already utilizing or intending to use the technology. However, 72% feel the industry is not ready for AI's impact. The report also indicates that legal teams using cloud computing are more likely to adopt AI. Most respondents see cloud-based ediscovery as the future norm for the industry.
Legal tech company Relativity has introduced Relativity Contracts, a tool within RelativityOne that streamlines contract analysis, reducing review time by 40% and project costs by 50%. The AI-based solution enables users to create custom models and convert contracts into structured data. Additionally, Relativity is testing GPT-4 via Microsoft Azure OpenAI Service for future AI developments, with plans to launch its first generative AI product later this year.
BigHand has incorporated AI features from its BigHand Impact Analytics into its Matter Pricing solution to help law firms safeguard their profitability. The AI tools transform intricate timecard data into trustworthy pricing insights. This move is in response to a study showing only 39% of firms can provide time details to clients at the matter level. The AI-enabled Timecard Analysis feature utilises machine learning to devise future pricing strategies, increase billing transparency and ensure precise billing and reporting.
iManage has launched iManage AI, an AI engine integrated into its cloud platform, to enhance user productivity and data security. The engine improves knowledge search and content workflows by analyzing legal documents and extracting key data such as jurisdiction, parties, and dates. It is trained on high-quality legal content and includes governance tools to maintain client confidentiality and regulatory compliance. iManage is currently validating its AI technology with customers.
Senior paralegal Jackie Bley utilizes the Observatory, an online tool by Orrick, for selecting and integrating contract lifecycle management (CLM) software. The tool offers a range of vendor options and prices. Bley also operates a rewards program to promote adoption of the tool. She highlights the necessity of adaptability, even if it requires multiple CLM changes, and the critical role of time management in balancing her legal and operational support duties.
Legal tech expert Steve Errick has joined the American Arbitration Association (AAA) as Senior Vice President and Chief Development Officer. Errick, formerly COO at Fastcase and head of Legal Research Information Division at LexisNexis, will lead strategic initiatives, product and service development, and marketing at AAA. His focus will be on the influence of emerging technology and AI on alternative dispute resolution.
A LexisNexis survey indicates that about half of the 7,950 respondents, comprising lawyers, law students, and consumers, believe generative AI will have a significant impact on the legal industry, particularly in research, document drafting, and analysis. Most corporate counsel anticipate their law firms adopting AI technology. However, ethical concerns exist among lawyers. The survey also revealed that many consumers are open to using AI for legal tasks such as creating wills or setting up businesses.
The ILTACON conference, a leading event for the legal tech sector, is taking place in Orlando, focusing on AI, data science, cybersecurity, and legal standards. The conference offers educational sessions, company updates, and showcases the latest in legal tech with 158 booths and 183 sponsors. The ILTA Startup Hub is also featuring 28 legal IT and tech startups. Key sponsors include NetDocuments and LegalMation, who appreciate the conference for its networking and knowledge-sharing opportunities.
LexisNexis' International Legal Generative AI Survey reveals that while 89% of legal professionals are aware of generative AI tools, only a minority have utilized them in their work. Ethical concerns were noted about the use of AI in legal research and document creation. Despite this, the majority of the 7,950 respondents across the US, UK, France, and Canada believe AI will significantly impact legal practices, particularly in research, document drafting and analysis.
Steve Errick, a leading figure in legal tech, has been named Senior Vice President and Chief Development Officer at the International Centre for Dispute Resolution, a branch of the American Arbitration Association (AAA). Errick has held executive roles at major legal tech firms including vLex, Fastcase, LexisNexis, Wolters Kluwer, and Thomson Reuters. His appointment is expected to expedite the AAA's strategic execution and stimulate growth.
The Future of Professionals Report by Thomson Reuters, based on a survey of over 1,200 legal and other professionals, shows optimism towards AI's potential to enhance productivity and job satisfaction. However, concerns about accuracy, data security, and ethics persist. The report suggests AI could create new services, skills, and career paths in legal and tax professions. Government professionals, however, anticipate slower AI adoption due to data security concerns and resistance to change.
iManage has introduced Insight+, a cloud-based knowledge search and management tool designed to improve productivity and client service in law firms. Built on the iManage Cloud platform, Insight+ allows users to discover best practices, curate data sets, and utilise knowledge. It includes two search experiences, robust content security and governance tools. The solution can be efficiently deployed for organisations of various sizes through the iManage Cloud platform.
iManage, in collaboration with Metia Group, has launched the Knowledge Work Maturity Model (KWMM), a first-of-its-kind tool enabling organizations to benchmark and optimize their knowledge work practices against a global index. The model offers a framework, score, and action plan to improve these practices. It also identifies five stages of maturity for knowledge work organizations, ranging from 'Seeker' to 'Pioneer'.
Peppermint Technology is launching an Enterprise Relationship Management (ERM) solution to improve its legal-specific Client Relationship Management offerings. The ERM, designed for the legal industry, simplifies strategic networking and client nurturing, using data from Microsoft Teams, Outlook, and Client Engagement to visualize engagement networks, facilitating new client acquisition and business growth. The solution will be available to key customers by late 2023 and to all customers in early 2024.
Aderant has released an updated version of its practice management software, Expert 8.2 SP3, featuring significant enhancements to its Expert Billing. The update includes a new Paperless Billing Inbox, improved communication and collaboration tools, and better visibility and tracking. The software also integrates with Aderant's AI-powered Onyx, an Outside Counsel Guidelines (OCG) management solution. The improvements aim to streamline digital processes, speed up the billing cycle, ensure OCG compliance, facilitate faster payments, and reduce costs for law firms.
Legal tech startup Oddr, which provides a platform to streamline law firms' billing processes, has made significant strides in its mission. The platform handles the entire invoice-to-cash cycle and has been praised for increasing efficiency and productivity. After securing $2 million in funding, Oddr intends to expand its operations and double its team within the next year. The company will demonstrate its progress at ILTACON 2023.
Agiloft, a contract lifecycle management (CLM) company, has launched AI Trainer, a tool that allows non-technical users to train its AI to recognize key terms and clauses in contracts. The tool aims to speed up contract review cycles and improve automation in the contracting process. It also enables users to develop custom AI models to scrutinize business-specific contract elements, assisting in risk monitoring, performance, and compliance.