As the landscape of legal technology continues to evolve, the advent of artificial intelligence (AI) has played a pivotal role, particularly in the legal sector. The recent second anniversary of ChatGPT on 30 November has prompted discussions on the significant transformations that have occurred over the past two years in legal tech adoption and implementation.
Historically, early innovators like Kira and Luminance laid the groundwork for legal AI, yet the environment at that time was markedly different. Michael Kennedy, head of innovation and legal technology at Addleshaw Goddard, acknowledged that the current legal tech ecosystem is far more developed, stating, “Now, legal tech is a much bigger space, with lots of firms, vendors and individuals engaged and invested in using technology to drive change.” The landscape now features innovation teams working alongside IT departments as dedicated resources, a shift from the previous focus on incubating new technologies.
Investment levels have similarly increased, allowing not just for the birth of legal tech start-ups but also their scaling and eventual acquisition. Kennedy reflected on the early days of their machine-learning journey, noting, “When we were starting our machine-learning journey and licensed Kira, there were only a couple of tools on the market... Now start-ups like Harvey and Leya have huge backing.”
One of the most noteworthy trends is the legal sector's willingness to collaborate with start-ups. This strategic partnership model allows firms to influence product development while navigating the potential risks associated with larger players acquiring these vendors. Joe Cohen, director of advanced client solutions at Charles Russell Speechlys, noted, “Although I have had a couple of bad experiences with products being purchased and then subsequently changed or retired, it’s not really an option to wait and see what the big vendors do.”
The rapid pace of technological change also necessitates a shift in approach. Aileen Johnson, director of knowledge at Charles Russell Speechlys, commented, “Things are moving so quickly that a ‘wait and see’ approach isn’t viable. Deploying [GenAI] early has enabled us to get people moving on the journey.” Integrating GenAI technology into existing operational frameworks is seen as a priority, as adoption trends reflect a broader trend towards early deployment to capture insights and streamline processes.
At the forefront of these advancements is the consideration of not only commercial viability but also the practical integration of such technologies. Hélder Santos, head of legal tech and innovation at Bird & Bird, underscored the agility offered by start-ups. However, he warned of the need for effective planning, stating, “Integrating new technologies into existing systems can take a lot of work. Effective planning and execution are crucial to ensure a seamless transition.”
The impacts of GenAI extend beyond the legal practitioners themselves, reaching into areas such as legal marketing and communications. For example, Sarah-Jane Howitt, partner and business development and marketing director at Weightmans, shared that they are leveraging GenAI to assist lawyers in drafting thought leadership pieces, thus showcasing the technology's versatility in enhancing productivity.
Despite the promising advantages of GenAI, experts caution that it still represents a significant investment and is yet to replace traditional roles or legacy systems. Tom Whittaker, director and solicitor advocate at Burges Salmon, indicated that while legal tech boosts efficiency and pricing strategies, it also enhances client options regarding analysis and outputs.
Looking to the future, industry leaders anticipate profound changes by 2025, as GenAI becomes an ingrained part of standard business practices. Christopher Tart-Roberts, head of lawtech at Macfarlanes, elaborated, “Our main focus turns to leveraging it on larger workstreams. This will involve much more radical change to the way we work.”
As firms continue to develop their capabilities with GenAI, competition may heighten. Cohen highlighted that while a baseline adoption may occur across the industry, the true value lies in tailoring unique solutions that leverage both software and specific legal expertise for clients.
Santos forecasts significant productivity gains driven by GenAI, paired with necessary investments in IT infrastructure and risk management strategies. The future landscape may see larger firms leading the charge in leveraging such technologies for improved operational efficiency.
The 10th anniversary celebration at Digital Law also spotlighted the emerging risks associated with GenAI, particularly in the context of increased cyber threats. Founder and managing partner Peter Wright emphasised the importance of digital literacy amid these challenges, indicating that the implications of AI technology extend beyond just its operators to affect the broader business environment.
The ongoing journey of integrating GenAI within the legal sector illustrates an evolving narrative, marked by opportunities for innovation as well as the recognition of potential challenges that lie ahead.
Source: Noah Wire Services