Big Changes in Legal Technology: Mergers, AI Tools and a Proposal for National Legal Innovation Centre
DISCO unveils a new AI tool for e-discovery. STP Group's acquisition of Knowliah signifies legal-tech consolidation, as a National Centre for Legal Innovation is proposed in the UK.
Welcome to your Law Tech briefing for July 10th, 2023, covering what happened in legal tech recently.
TLDR; Listen instead:
Have less than a 1 min? Three takeaways from yesterday
1. The legal industry is increasingly adopting AI and other technologies to enhance productivity and operational efficiency. This includes AI tools like DISCO's Cecilia for large-scale e-discovery and SaaS-based professional legal technologies, indicating the demand for these innovative solutions is on the rise.
2. Pricing transparency is becoming a significant trend in the legal sector. Platforms like Validatum’s Virtual Pricing Director, as used by William Fry, show a growing industry demand for clarity in law firm pricing. Firms should consider adopting software that simplifies complex processes like pricing and budgeting to respond to this trend.
3. The establishment of establishments like the proposed National Centre for Legal Innovation in the UK can centralize and structure the approach to tech-law and law-tech. This could lead to more efficient developments in legal technology. However, firms should also consider the challenges and conflicts that may arise due to AI and data privacy issues, stressing the need for a balanced approach to adopting new technologies.
Briefing
Here's what happened in Legal Tech recently. William Fry, an Irish law firm, announced plans to use the Virtual Pricing Director (VPD), a pricing platform provided by Validatum. This comes after the technology was adopted by UK firms Shakespeare Martineau and Hugh James. The move signals a trend towards pricing transparency and efficiency in the legal field. AI-led legal-tech firm, DISCO, unveiled a private access launch of its AI tool, DISCO Cecilia, for large-scale e-discovery.
Meanwhile, in the European market, STP Group, a German legal-tech solutions provider, acquired Knowliah, a provider of Enterprise Legal Management solutions. This merger underlines the ongoing consolidation in the legal tech sector. Finally, Prof. Richard Susskind proposed the establishment of a National Centre for Legal Innovation in the UK.
Trends
The adoption and incorporation of AI in the legal sector were dominant trends. DISCO's new AI tool, DISCO Cecilia, marries natural language processing, generative AI, and advanced search technologies to assist lawyers in data analysis. The acquisition of Knowliah by STP Group also points to the increasing demand for AI-backed and SaaS-based professional legal technologies. Alongside AI, the focus on pricing transparency was another noticeable trend with the use of VPD by William Fry showing an industry push for clarity and certainty in law firm pricing.
Analysis
The recent updates reflect the continuous shift towards the adoption of AI and other technology in the legal domain to enhance productivity and drive operational efficiency. DISCO's launch of the Cecilia AI tool is a testament to the power of technology in reducing manual work in legal firms. The STP Group-Knowliah acquisition aligns with this as it highlights the synergy of combining different tech solutions to meet the rising demand in the legal sector. The National Centre for Legal Innovation proposed by Prof. Susskind could be a game-changer. It would centralize and structure the approach to tech-law and law-tech, making for more efficient developments in legal technology. William Fry's utilization of VPD reiterates the need for software that can simplify complex processes like pricing and budgeting. However, amidst this embrace of technology, yesterday also underscored the struggles and challenges that come with technological evolution. The potential conflicts in M&A due to AI and data privacy issues are considerable reminders of the importance of a balanced approach to the adoption of new technologies in the legal sector.
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Key stories
Professor Richard Susskind has proposed the creation of a National Centre for Legal Innovation in the UK, aimed at maintaining the country's leadership position on the global legal stage and enhancing its response to rapid AI developments. This proposal comes amid observations that the UK's response to AI advancements is disorganized and inconsistent. The Centre, professed to epitomize the likes of the Turing and Crick institutions, is envisioned as a focal point for innovative thinking on access to justice and the integration of AI into the legal sector. The move is expected to encourage collaboration and leverage opportunities offered by existing and forthcoming AI developments. This initiative will also help in mitigating the risks of missing out on possible solutions to improve access to justice and to capitalize on English law as a leading global legal framework for international commerce.
Knowliah Announces Strategic Acquisition by STP Group (Legal Tech Blog)
The acquisition of Knowliah, a prominent European provider of enterprise legal management solutions, by STP Group, a major legal tech firm based in Germany, reflects the companies' global expansion goals and efforts to consolidate their presence in the law tech industry. Knowliah's expertise in process optimization and streamlined, AI-powered document-related tasks perfectly fits into STP Group's long-term vision for magnifying its influence on the European market by offering cutting-edge legal tech solutions to lawyers, notaries, and legal departments. The union will enable Knowliah to maximize support for legal professionals and leapfrog productivity levels. The strategy also includes the incorporation of Knowliah’s team into STP Group, bolstering the Group's goal to meet the rising demand for advanced legal tech solutions.
AI could play role in M&A disputes (Legal Dive - Latest News)
A report from the Berkeley Research Group indicates that the rise in the use of AI technologies is likely to complicate the landscape of mergers and acquisitions, leading to increased disputes. With 37% of respondents predicting AI to be a major area of conflict within digital assets and services this year, there's a potential for discord within the M&A due diligence process due to evolving regulations, lack of clarity about how AI works, and the interpretation of new laws. The proposed EU's Artificial Intelligence Act, which could become a global standard if finalized, may further complicate cross-border transactions and increase the potential for disputes. Compared to last year, digital assets and services have notably grown as a sector prone to M&A disputes, with cryptocurrency and blockchain expected to lead this increase.
All stories
William Fry to adopt Virtual Pricing Director for greater transparency (Legal IT Insider)
Irish law firm William Fry plans to use the Virtual Pricing Director (VPD), a legal Software-as-a-Service pricing platform by Validatum. VPD aims to enhance pricing transparency and budgeting certainty for clients and improve budgeting and pricing preparation efficiency. The platform has previously been adopted by UK firms Shakespeare Martineau and Hugh James.
Legal tech firms frequently misuse clichés and jargon in their marketing, potentially alienating their target audience of legal professionals. Lawyers often perceive terms like "Work Smarter, Not Harder," "Save Time," "Easy," "Change," "Best," "Beta," "Innovative," and "Solution" negatively. To effectively market their products, these firms must focus on how their technology improves the quality and efficiency of legal work, catering to the unique needs and values of the legal profession.
AI-enabled legal tech firm DISCO has unveiled a private access launch of its AI tool, DISCO Cecilia, for large-scale ediscovery. The tool, expected to be commercially available in the US in 2023, combines natural language processing, generative AI, and advanced search technologies to help lawyers efficiently analyze their data. DISCO Cecilia provides answers based on the user's private documents while ensuring data privacy.
STP Group, a German legal-tech solutions provider, has acquired European Enterprise Legal Management solutions provider, Knowliah. The acquisition aligns with Knowliah's growth vision and will enhance its support for legal professionals while improving efficiency. Knowliah will be integrated into STP Group as the competence center for legal departments, positioning both companies to meet the increasing demand for professional legal tech solutions.
Illinois, Colorado up next in pay transparency law updates (Legal Dive - Latest News)
The article explores the growing global trend of pay transparency, driven by regulations in Singapore, the EU, and the US that require companies to disclose salaries and benefits. It emphasizes laws like Illinois' HB3129 and Colorado's Equal Pay for Equal Work Act, which necessitate employers to reveal pay ranges and promotion chances. However, it also discusses potential issues such as privacy concerns, social discomfort, and effects on employer branding associated with pay transparency.
2023 in privacy: It (still) scares people (Legal Dive - Latest News)
Legal professionals are struggling to keep up with the rapidly changing data privacy laws, leading to increased stress and reliance on outside consultants, says Jay Brenner of legal placement agency Major, Lindsey & Africa. The constant need to incorporate new legislation into company privacy programs is overwhelming many in-house legal teams. Brenner advises companies to be proactive, understand their data, and limit data collection to ease the pressure.
