AI Managed Services for Legal Emerge
Legal tech companies are adopting AI to streamline services. Elevate Services securing a $40m loan, Eperoto showcasing its innovative tech, and Streamline AI partnering with Clearlaw.
Welcome to your Law Tech briefing for July 26, 2023, covering what happened in legal tech recently.
TLDR; Listen instead:
Have less than a 1 min? Three takeaways from yesterday
- The increasing integration of AI within the legal profession provides numerous opportunities for efficiency and effectiveness, particularly within areas such as contract management and client communication. Legal tech entities like Elevate Services, Eperoto, Streamline AI, and Clearlaw are investing significantly in this arena to streamline services, optimize processes, and simplify legal language. It's crucial for legal workers to familiarize themselves with these AI-powered tools and platforms to remain competitive.
- While AI technology provides significant benefits, it also comes with substantial risks on the regulatory front, especially for corporate legal teams within the EU. The possibility of stricter regulations means that careful AI usage and robust governance measures are paramount. Legal professionals should remain informed about these potential changes to ensure the responsible and ethical use of AI. Services like those offered by UpLevelOps are emerging to provide guidance to legal teams.
- The legal tech industry's rapid growth highlights the importance of continual education and professional development within this field. Emergent partnerships and new roles within the AI sector signal the industry's rapid evolution. This evolving landscape underlines the need for legal professionals to stay updated about these advancements while also understanding how they can leverage them to transform consultation processes and client relationships for the better.
Briefing
Here's what happened in legal tech recently. In a major move, Elevate Services secured a $40m loan to refinance debt and gear towards expansion. Eperoto, a Sweden-based tech innovator, showcased its capabilities in aiding lawyers to predict case outcomes. Meanwhile, legal tech firms Streamline AI and Clearlaw's partnership promises to enhance contract review capabilities. Elsewhere, AI safety and research firm Anthropic began its hunt for a prompt engineer, while prominent law service companies, including LexisNexis, NetDocuments, and Everlaw, unveiled notable AI-powered products and enhancements.
Trends
The prevalent theme throughout was the encroachment of AI across varying facets of the legal profession. LexisNexis introduced a cloud-based CRM tool, InterAction+, with enhanced features and a new interface designed for mid-sized law firms. Meanwhile, NetDocuments launched the first of its AI-powered products in the ndMAX series, PatternBuilder MAX. This tool is designed to optimize law firms' drafting capabilities. Everlaw also added three AI features to their platform, aiding legal teams in document summary and case preparation. Notably, legal tech firms Streamline AI and Clearlaw have partnered to integrate Clearlaw's AI-based contract intelligence platform, promising greater contract review efficiency. Additionally, the anticipated AI regulations could present challenges for corporate legal teams, especially those in the EU, highlighting the need for careful AI usage and robust governance measures.
Analysis
The legal tech landscape is undergoing a seismic shift as firms invest in AI to streamline services. This focus on AI is arguably driven by the need to meet the swelling demands for data visibility, efficient processes, and simplified legal language, notably in contract management, as pointed out in the World Commerce & Contracting and Deloitte report. The exciting partnerships and new roles in the AI domain signal the sector's rapid evolution, emphasizing that legal tech is closer to realizing its full potential. However, with stricter AI regulations on the horizon, companies will need to be cautious about employing AI, ensuring it is used responsibly and ethically. Finally, there will need to be a greater need for assisted services such as those offered by UpLevelOps to help legal teams navigate through the ever-evolving complex jungle that is AI.
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Key stories
Disconnect grows between law firm service and client expectation, survey finds (Legal IT Insider)
The UK's legal sector is feared to be lagging behind in adopting data, technology, and innovative service delivery models, according to Axiom's second annual report. The survey found that around 90% of in-house counsel and 75% of private practice lawyers think the legal sector has been slow in these areas, an increase from 64% last year. Furthermore, 96% of in-house counsels and 78% of private practice lawyers feel a disconnect has formed between what clients expect and what law firms deliver. Despite this concern, 92% of surveyed lawyers are satisfied with their jobs, largely due to positive client relationships. The economic instability sparks anxiety amongst the majority, believing it could lead to cuts and freezes in their departments and firms. Nevertheless, most are not seeking new roles presently, compared to half the lawyers in the previous year's survey.
BigHand, a global leader in technology solutions for law professionals, has revealed its major research findings on the current state of the legal industry. The study involved over 800 law firm leaders and unveils a rather grim outlook for the sector. Around 75% of the participants experienced a decrease in demand over the last year, and the same proportion expect this trend to continue into the next 12 months. As a response, 61% of law firms have lowered prices, while 29% are focusing on strengthening client relationships. The report also highlights an increased cost-consciousness among clients, with 87% of law firms noting the rising trend. BigHand's investigation underlines the industry's need for evolution to remain competitive in an uncertain market. The firm plans to provide further insights through future reports focusing on various aspects of the legal industry.
The legal operations consulting firm, UpLevel Ops, has launched its Generative Artificial Intelligence (Gen AI) Management Services for legal professionals. As early adopters of Gen AI in the legal sector, they aim to provide legal experts with the tools to gain a strategic advantage. With Gen AI becoming increasingly important for businesses in various sectors, UpLevel Ops promotes its integration for long-term success. Services to be offered include policy and procedure development for safe AI usage, educational sessions regarding AI's impact on the law, and advice on setting up sustainable AI programs. This application of AI within the industry could potentially revolutionize how legal operations are carried out.
All stories
Five Fast Facts: Eperoto talks disputes analysis (Legal IT Insider)
Eperoto, a Sweden-based company established in 2019, assists lawyers in forecasting the results and scale of disputes. The firm's founder and CEO, Olof Heggemann, effectively presented five key facts about the company and demonstrated its capabilities within a five-minute timeframe. Eperoto's innovative approach seeks to revolutionize the legal industry by improving predictive outcomes.
ICYMI: Elevate secures $40m in debt financing from Runway Growth Capital (Legal IT Insider)
Alternative legal services provider, Elevate Services, has secured a $40m loan from Runway Growth Capital to refinance debt and obtain additional capital. Elevate has raised $102m to date and recently gained a $25m minority investment from Kayne Partners. The loan will assist Elevate in implementing the next phase of its expansion strategy, which has included the acquisition of several firms in recent years.
Body Language Tips to Get to Agreement (Attorney at Work)
The article highlights the role of body language and communication in successful legal negotiations. It suggests that building rapport can lead to better outcomes. Three techniques are recommended: addressing people at a 45-degree angle to avoid confrontation, subtly imitating their body movements for comfort, and matching their speech pace. The article stresses that these methods require practice but can substantially enhance negotiation results.
Former president and CEO of inData Corporation, Derek Miller, has been appointed as the chief growth officer at Lit Software. The company, renowned for creating the first legal-specific iPad app, TrialPad, plans to grow its market to larger firms, corporations, and insurance companies. Miller's appointment signifies a shift from traditional trial software to mobile-first products. Lit Software's litigation apps include TranscriptPad, DocReviewPad, and ExhibitsPad.
The anticipated AI regulations present potential challenges for corporate legal teams, especially in the EU due to the AI Act's strict obligations. Non-compliance could lead to substantial penalties, reputational harm, and financial losses. Global regulatory bodies are also moving to regulate AI applications due to privacy and security issues. The article advises companies to responsibly use AI, implementing safeguards and governance measures to oversee algorithm performance and data usage.
Anthropic, an AI safety and research firm, is seeking a "Prompt Engineer/Librarian" for its AI tool, Claude. The role requires discovering and documenting best practices, building a prompt library, creating tutorials, and liaising with large enterprise clients. Candidates should have 3-5 years' experience, familiarity with large language models, excellent communication, and basic programming skills. The salary range is $250k-$375k.
Decoding ESG: A Practical Guide for Legal Teams (Fringe Legal)
The article emphasizes the importance of ESG (Environmental, Social, Governance) factors in business risk management and attracting investments. It recommends a phased approach for companies to integrate ESG, starting with policy creation. Legal teams are advised to align ESG strategies with commercial goals and avoid pitfalls such as addressing too many ESG factors simultaneously or setting unrealistic goals. The article underscores that ESG is a continuous process, not a one-time compliance task.
The article highlights three strategies for law firm innovation: identifying the need for change, uncovering innovation opportunities, and starting with small changes for significant results. It underscores the need for continuous improvement, company-wide involvement in innovation, and the use of technology to enhance productivity and efficiency. These tactics can assist law firms in remaining competitive in the rapidly evolving legal industry.
Streamline AI partners with Clearlaw to enhance contract review (Legal Dive - Latest News)
Legal tech companies, Streamline AI and Clearlaw, are partnering to integrate Clearlaw's AI-driven contract intelligence platform into Streamline's process automation platform. The integration will provide Streamline users with over 350 data points to enhance contract review and automate workflows. The goal is to expedite contract approval, save time for legal teams by converting contracts into structured data, and pre-fill client requests for legal services. The firms intend to jointly market the integrated solution.
How to stem contract value erosion (Legal Dive - Latest News)
A report by World Commerce & Contracting and Deloitte reveals that despite greater investment in contract lifecycle management software, contract value erosion continues to be a substantial problem. Average losses are at 8.6%, a minor decrease from 9.2% in 2014. The report blames these losses on inefficient processes, limited data visibility, and complex contract language. It suggests segmenting contracts by complexity and involving the appropriate personnel in contract management.
Everlaw unveils gen AI assistant to help with document review and first drafts (Legal IT Insider)
US e-discovery firm Everlaw has added three AI features to its platform to aid legal teams. These features include review assistance, writing assistance, and an on-demand question-answer function. The AI-generated output is easily distinguishable and can be verified by legal experts. It can provide insights from a single document, simplifying drafting and reviewing for legal teams. Everlaw's AI enhancements are set to revolutionize how legal teams manage complex documents and case preparation.
LexisNexis launches InterAction+ true cloud CRM solution – Our analysis (Legal IT Insider)
LexisNexis has introduced a cloud version of its CRM tool, InterAction+, offering a redesigned interface and enhanced features. The tool allows data storage either locally or in Microsoft Azure sites in the US, UK, and Australia. The cloud-based architecture enables greater integration with the LexisNexis Context database. This release is expected to appeal to mid-sized law firms with 20-200 attorneys, opening a new potential market for LexisNexis.
NetDocuments unveils new gen AI product suite starting with document assembly (Legal IT Insider)
NetDocuments has launched a range of AI-powered products called ndMAX, the first of which, PatternBuilder MAX, is already in use in US and UK law firms. The tool lets firms develop custom AI automation for specific practice areas, including creating draft documents, extracting document information, and accelerating document review. The company has addressed client confidentiality and data security concerns during ndMAX's development.
E-Discovery Company Nextpoint Raises Growth Capital Investment of Undisclosed Amount (LawSites)
Cloud-based e-discovery company Nextpoint has received an undisclosed growth capital investment from RF Investment Partners. The funding will support Nextpoint's expansion into new markets, operational enhancements, product development, and potential mergers and acquisitions. The company recently launched Nextpoint Law Group in Arizona, becoming the first e-discovery firm to establish a law firm. This marks RF's 12th investment in the software sector.
Everlaw, an e-discovery company, has introduced EverlawAI Assistant, a generative AI tool designed to help legal teams summarize complex documents and construct cohesive narratives from large data sets. The AI tool extracts vital information, summarizes content, and highlights relevant topics from documents. It also aids in creating evidence-based narratives with proper citations. Integrated into the Everlaw platform, it is designed to fit within existing workflows. The tool is currently in beta release.
LexisNexis is launching a cloud-based version of its client relationship management (CRM) product, InterAction+, targeting mid-sized and smaller law firms globally, especially in the US, EU, and Australia. The new product offers a modern user interface, mobile connectivity, integration with LexisNexis content and its litigation analytics product, Context. Customers have the option to host their data on LexisNexis's servers or use a hybrid cloud with their own data centers.
NetDocuments has launched PatternBuilder MAX, an AI-powered tool designed to streamline legal document drafting. Using generative AI, the tool extracts crucial information and generates drafts, enhancing efficiency in producing complex legal documents. The platform, built on Microsoft Azure OpenAI Service, integrates with existing workflows and maintains firms' security and compliance standards. More workflow-enhancement products are expected from NetDocuments under the ndMAX series.
Fix Your Law Firm Intake and Maximize Your Income (Attorney at Work)
The article stresses the significance of streamlining the client intake process in law firms, advocating for it to be treated as a sales process. It recommends employing non-lawyers for this role for efficiency and cost reasons, and offers practical improvement steps like swift response times, client vetting, and re-engaging missed appointments. The use of technology for automation is also suggested.
LexisNexis has introduced InterAction+, a cloud-based customer relationship management (CRM) solution for law firms. The tool merges legal CRM with LexisNexis content and features a single sign-in interface, a system for tracking neglected contacts, and predictive data analytics to identify business opportunities and manage risky clients. The basic features of InterAction+ are available with a subscription, while a full Context subscription provides access to more data.
LexisNexis Legal & Professional has introduced InterAction+, a cloud-based legal CRM that integrates with Outlook and offers business intelligence. This platform allows lawyers to connect litigation data with InterAction contacts, managing relationships and identifying opportunities and at-risk clients. InterAction+ plans to expand its features and content integrations, including news and company information from LexisNexis Legal News and LexisNexis Dossier.
NetDocuments has introduced ndMAX, a set of AI-powered tools aimed at enhancing legal workflow. The first product, PatternBuilder Max, allows law firms to automate routine tasks and generate new content using their own documents and data, leveraging Microsoft's Azure OpenAI Service. The product, currently accessible to select customers, will be broadly available in Fall 2023. The development of ndMAX considered clients' concerns about responsible AI use, including data privacy and security.
Everlaw, a litigation platform, has unveiled its EverlawAI portfolio featuring generative AI capabilities aimed at boosting productivity for legal teams. The AI enhancements are designed to expedite the creation of written materials and summarization of complex documents. The EverlawAI Assistant provides AI review and writing assistance, capable of generating first drafts from key evidence swiftly. The AI technology is incorporated across Everlaw workflows to enhance the overall ediscovery process.
Veritext Legal Solutions has introduced MyVeritext 3.0, a comprehensive web portal designed to streamline legal workflows. The platform offers scheduling, remote session access, and secure file access, all in one place. It also includes features like easy scheduling, immediate access to remote proceedings, and a robust search function. Veritext will hold webinars on July 27 and August 2 to introduce the new platform.
LexisNexis has introduced InterAction+, a cloud-based Customer Relationship Management (CRM) platform for lawyers. The platform integrates a business development tool, cloud infrastructure, and proprietary LexisNexis content. It utilizes predictive data analytics to identify new business opportunities and at-risk clients. Providing data security and remote access, the CRM is suitable for law firms of all sizes and will continue to add new features and content integrations.
NetDocuments has unveiled ndMAX, a range of AI-driven products aimed at optimizing legal workflows. The first product, PatternBuilder MAX, uses Microsoft Azure OpenAI Service to improve document assembly and workflow. It allows firms to develop custom AI automations for particular practice areas, automate routine legal tasks, and extract document information. The product, which also addresses key requirements for responsible AI use in the legal sector, is currently available to select customers, with a broader release planned for Fall 2023.
Why GCs need to step back from day-to-day legal work (Legal Dive - Latest News)
Rob Beard, current Chief Legal Officer at Mastercard and former General Counsel at Micron Technology, has emphasized the importance of strategic direction and talent development in leadership roles. He believes that over-involvement in daily tasks can stunt team growth. Using his experience at Micron as an example, Beard highlighted the benefits of allowing his team to handle key tasks in the development of a major semiconductor facility in New York.
