Jun 26th: Maddie, AI trends and privacy update

Law firms must adopt new technologies while balancing them with human oversight to stay relevant in a competitive landscape. They should also adopt robust security measures to ensure client confidentiality and compliance with data privacy laws.

Welcome to your Law Tech briefing for June 26th, 2023, covering what happened in legal tech recently.


TLDR; Listen instead:


Have less than a 1 min? Three takeaways from yesterday

  1. Adopt new and innovative technologies like AI-powered virtual assistants and cloud-based case management software to automate routine tasks, boost efficiency and productivity, reduce costs, and stay competitive. However, balance technology with human interaction and collaboration to maintain client satisfaction.
  2. Proactively monitor the dark web, use anti-malware and antivirus software, enforce robust password policies, encrypt sensitive data, and provide employee training to safeguard clients' data from cyber threats and comply with expanding data privacy laws. Privacy and cybersecurity will become even more important.
  3. Some firms may benefit from embracing digital payments, expanding the search for talent, and making offices accessible from anywhere to stay relevant in an ever-evolving digital landscape and future-proof your firms.

Briefing

Aderant, a legal tech company, introduced an AI-powered virtual assistant named Maddi to automate routine tasks and provide insights across their applications. Maddi has been pre-trained on data from various Aderant applications and requires minimal training by law firms. It will first be used in the outside counsel guidance compliance tool Onyx and may also be applied to the North American docketing solution Milana.

Sean Christy and Chuck Hollis discussed trends in AI, Machine Learning & Big Data Laws, and Regulations for 2023. They emphasized the importance of law firms proactively safeguarding client data from cyber threats and maintaining trust and confidentiality by continuously adapting to evolving threats.

Trends

  • Changes to the California Consumer Privacy Act (CCPA) have been approved, expanding consumer rights and introducing compliance challenges for businesses. The CCPA now covers business contacts and employees' personal information, and businesses must comply with universal opt-out requests. Data "sharing" is now included, and other states such as Colorado, Connecticut, and Utah are developing their own data privacy laws.
  • A survey revealed that lawyers are among the loneliest professionals, which can lead to addiction, depression, stress, burnout, and relationship problems. Lawyers are advised to foster trusting relationships, practice self-care, set boundaries, and maintain perspective to combat loneliness.
  • Law firms need to adopt new technologies to remain competitive and accommodate evolving client preferences, rising staff costs, and increased competition. Recommendations include embracing cloud-based case management software, offering virtual meetings, and creating accessible offices. Balancing technology with human oversight is crucial for better outcomes and improved client satisfaction.

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Key stories

AI, machine learning and big data laws and regulations 2023 (Inside Tech Law)

Sean Christy and Chuck Hollis have written about trends related to AI, Machine Learning & Big Data Laws and Regulations in 2023. The article provides a comprehensive overview of the legal landscape surrounding AI, machine learning, and big data in the United States. It delves into the current regulatory framework, key issues, and potential future developments.

One of the key points made in the article is that the U.S. currently lacks a comprehensive federal law specifically regulating AI, machine learning, and big data. Instead, these technologies are governed by a combination of state and federal laws, along with sector-specific regulations. The Federal Trade Commission (FTC) is identified as the primary federal agency responsible for enforcing laws related to these technologies. The FTC has issued guidelines on the use of AI and algorithms, with a focus on transparency, explainability, fairness, and robustness.

Privacy is another significant concern highlighted in the article. The U.S. does not have a federal data privacy law, but several states, most notably California with its California Consumer Privacy Act (CCPA), have enacted their own privacy laws.

The article also discusses the legal issues that can arise from the use of AI in decision-making processes, particularly in areas such as employment or credit decisions. These can lead to legal issues related to discrimination and bias.

Looking toward the future, the article predicts an increase in regulation in this area, particularly as AI and big data continue to evolve and become more integrated into society. The potential for federal privacy legislation is also discussed.

ChatGPT Lawyers Sanctioned (The Time Blawg)

The Judge in the Mata v Avianca case has issued a judgment for the infamous ChatGPT lawyer case. The lawyers were sanctioned with a penalty of $5,000 and must send a letter individually addressed to each judge falsely identified as the author of the fake opinions, identifying the court's Opinion and Order, a transcript of the hearing, and a copy of the April 25 Affirmation, including the fake “opinion” attributed to the recipient judge. The opinion concludes that ChatGPT lawyers abandoned their responsibilities when they submitted non-existent judicial opinions with fake quotes and citations created by the artificial intelligence tool ChatGPT, then continued to stand by the fake opinions after judicial orders called their existence into question. The ChatGPT lawyers have highlighted the dangers of ChatGPT hallucinations and, hopefully, brought the deficiencies of ChatGPT for legal research to the attention of litigants.

All stories

Aderant introduces AI associate Maddi to its European customers: We speak to the senior execs (Legal IT Insider)

Aderant, a legal software company, has launched an AI-powered virtual assistant called Maddi to its European users. Maddi is designed to automate routine tasks and has been pre-trained on data from several Aderant applications. It requires minimal training by law firms and will be applied across Aderant's solutions. Maddi will first be used in the outside counsel guidance compliance tool Onyx, which extracts terms from OCG documents and categorizes them with minimal human intervention. Aderant is also exploring ways to apply Maddi to its North American docketing solution Milana.

Webinar: Technology adoption and generative AI – Transforming transactional practices (Legal IT Insider)

An upcoming webinar hosted by Litera will explore the adoption of technology within law firms and the factors that determine which technologies are used more than others. The webinar will also discuss the potential use cases for generative AI and the explosion of interest in this technology. The event will feature guest speakers from UK top 50 law firm, Shoosmiths, who lead the firm's AI contract review service, Cia, and a workflow manager from Litera. The discussion will be chaired by editor Caroline Hill, and interested participants can sign up to ask questions.

Law Firm Cybersecurity Checklist: 5 Actionable Steps to Fortify Your Castle (Attorney at Work)

Law firms must take proactive measures to safeguard their clients' data from cyber threats, according to a news article. The article recommends a cybersecurity checklist that includes monitoring the Dark Web, enforcing robust password policies, using antivirus and anti-malware software, encrypting sensitive data, and providing employee training. The article highlights the importance of continuous improvement and adaptation to evolving threats, as well as the obligation to maintain trust and confidentiality in the legal profession.

Aderant Introduces AI-Powered Virtual Associate MADDI (Legal Tech Blog)

Aderant, a legal business management solutions provider, has introduced an AI-powered virtual assistant named MADDI to automate routine tasks and offer actionable insights across the company's applications. MADDI has been pre-trained on a vast knowledge base from several Aderant applications and requires minimal training from law firms. It is being used in solutions such as Onyx, which automates compliance with outside counsel guidelines across time, billing, and e-billing. MADDI also assists timekeepers in creating accurate, compliant time entries and automates matching cash receipts to the proper invoices and charges.

California privacy law changes draw in more businesses (Legal Dive - Latest News)

Regulators in California have approved changes to the California Consumer Privacy Act (CCPA) that will expand consumer rights and introduce additional compliance challenges for businesses. The CCPA now applies to business contacts and employees' personal information, and businesses must comply with universal opt-out requests. The law has also expanded to include data "sharing." Other states, including Colorado, Connecticut, and Utah, will introduce their own data privacy laws, while federal legislation remains a subject of debate in Congress.

Lawyer Loneliness: You’re Not Alone in Feeling Alone (Attorney at Work)

A recent survey of 1,624 full-time employees has found that lawyers are the loneliest of all professionals, which can lead to addiction, depression, stress, burnout, and relationship problems. The importance of reputation, the weight of their work, and the tendency to hold onto emotional material they hear can all contribute to this loneliness. To combat this, lawyers need to create and maintain trusting relationships both at work and in their personal lives, practice self-care, create and maintain boundaries, and keep work in perspective.

5 Ways to Future-Proof Your Law Firm (Attorney at Work)

Law firms need to adopt new technologies to stay competitive and meet evolving client preferences, rising staff costs, and growing competition. To future-proof their firms, lawyers should make their offices accessible from anywhere, embrace digital payments, and expand their search for talent. By adopting cloud-based case management software and offering virtual meetings, firms can boost efficiency and productivity while reducing costs. However, it's important to balance technology with human oversight to deliver better results and enhance client satisfaction.

Unpacking the Future of Legal Tech at the Legal Innovators Conference (JD SUPRA)

The Legal Innovators Conference in San Francisco explored the future of legal tech, with a focus on artificial intelligence (AI) and large language models (LLMs). While there was excitement about the potential of these technologies, there was also caution and concern about security, privacy, and ethical standards. The conference also highlighted the changing landscape of the legal industry, with a need to rethink traditional ways of working.