(Jun 28) In-House Efficiency & AI Trends - What Your Legal Team Needs to Know
Discover the latest in legal tech: Clearbrief secures $4M, Relativity launches aiR for Review, and Anaqua introduces AQX 11. AI and automation revolutionize the legal profession!
Welcome to your Law Tech briefing for June 28th, 2024, covering what happened in legal tech recently.
Have less than a 1 min? Three takeaways from yesterday
- Embrace AI Solutions: Legal tech firms like Clearbrief and Relativity are heavily investing in AI tools to automate and enhance legal tasks. Integrating such solutions can improve efficiency and accuracy in your legal practice, making tasks like document review and legal writing more streamlined and effective.
- Prioritize Long-term Efficiency: The shift towards AI and automation is more pronounced among in-house legal teams, emphasizing achieving long-term efficiency and cost savings. Law firms should consider adopting similar strategies and technologies that support sustainable and efficient legal operations to stay competitive.
- Invest in AI Education: US law schools are incorporating AI-focused courses, reflecting the importance of equipping future lawyers with tech competencies. Continuous education in AI and legal tech is critical for legal professionals to remain relevant and competitive in a rapidly evolving landscape.
Briefing
The evolving legal landscape highlights a growing divide in the adoption of AI and automation between in-house legal teams and traditional law firms. A recent survey reveals that 71% of in-house legal teams prioritize AI and automation, compared to just 57% of law firms. In contrast, many law firms focus on short-term profitability, potentially risking efficiency gains and cost savings achievable through technology (Inhouse Counsel More Focused on AI + Automation Than US Law Firms – Survey - Artificial Lawyer). This disparity signals an increasing reliance on Alternative Legal Service Providers (ALSPs) for routine tasks, while law firms remain cautious about outsourcing more complex work like M&A due diligence.
Clearbrief, an AI-powered legal writing tool, recently raised $4 million in a funding round led by notable investors, bringing its total funding to $8 million. Clearbrief’s rapid growth and integration with major legal tech platforms demonstrate the significant impact and innovation within the sector (Legal AI startup Clearbrief raises $4m financing - Legal IT Insider; AI Legal Writing Tool Clearbrief Raises $4 Million to Fuel Expansion Among Larger Law Firms - LawSites).
BigHand's benchmarking report underscores a disconnect between law firm pricing strategies and client expectations. As clients demand greater transparency, law firms are advised to enhance pricing strategies by onboarding pricing and finance experts to drive efficiency and profitability (BigHand benchmarking report reveals disconnect between law firm pricing plans and client expectation - Legal IT Insider).
Generative AI is rapidly influencing legal education, with many US law schools incorporating AI-focused curricula and hands-on learning. This shift suggests that future legal training will blend traditional skills with technological competencies, preparing graduates for an AI-enhanced legal environment (GenAI Is Rapidly Making Its Way Into Law Schools - Artificial Lawyer).
Relativity's new AI-driven eDiscovery tool, aiR for Review, is set to launch in Q3. It promises efficiency, accuracy, and cost savings for RelativityOne users globally. This tool is part of a broader suite to revolutionize eDiscovery processes (Relativity’s New GenAI eDiscovery Tool ‘aiR For Review’ Rolls Out Q3—Artificial Lawyer).
Meanwhile, Anaqua has launched AQX 11, an AI-driven IP management platform designed to enhance decision-making and efficiency for IP attorneys. This release, marking Anaqua’s 20th anniversary, sets a new standard in IP management technology (Anaqua Launches AI-Powered IP Management Platform AQX 11 - Legal Technology News - Legal IT Professionals).
Furthermore, LexisNexis is developing Tolley+ AI, a generative AI platform for tax professionals, consolidating the trend of AI applications across legal specializations (LexisNexis To Develop Tolley+ AI For Tax Professionals—Artificial Lawyer).
Finally, ensuring alignment with client preferences remains critical, with lawyers encouraged to be proactive in understanding and adapting to individual client needs to avoid trust breakdowns (From the Client’s Perspective: How to Keep Client Relationships From Veering Off Track - Articles, Tips and Tech for Law Firms and Lawyers).
As Hungary sets a 30 June 2024 deadline for compliance with the NIS2 Directive, firms operating within the region must prepare for upcoming cybersecurity requirements (NIS2 Directive: The deadline for the registration of entities in Hungary is 30 June 2024 - Technology's Legal Edge).
Key stories
Inhouse Counsel More Focused on AI + Automation Than US Law Firms – Survey (Artificial Lawyer)
The recent survey by UnitedLex reveals a seismic shift in how in-house legal departments and law firms view AI and automation. A significant 71% of in-house lawyers are prioritizing automation and analytics modernization, compared to only 57% at law firms. This indicates a broader disparity in long-term goals; 46% of in-house teams see AI tools as crucial for continuous improvement, in stark contrast to just 38% of their law firm counterparts. This divergence likely stems from differing core motivations: while law firms prioritize short-term profitability and efficiency, in-house teams aim to align with shareholder interests, driving efficiency and cost savings. This may suggest a misalignment in law firms’ strategy focused more on immediate gains rather than systemic evolution. Such differences could spell a growing reliance on ALSPs, particularly for low-risk work, as in-house teams look for more cost-effective solutions, challenging traditional law firm models. The survey's findings offer a glimpse of potential fault lines in the industry, especially in transactional work where ALSP penetration remains minimal. This scenario presents an untapped opportunity for ALSPs ready to expand their market presence.
All stories
Legal AI startup Clearbrief raises $4m financing (Legal IT Insider)
Clearbrief, an AI-powered legal writing tool, raised $4 million, bringing its total funding to $8 million since 2020. The funding round was led by Authentic Ventures, How Women Invest, and Reign Ventures, with participation from Wilson Sonsini and angel investors. Based in Seattle, Clearbrief integrates with major legal tech platforms and has received multiple industry awards for its innovation.
BigHand's new report reveals a gap between client expectations and law firm practices in pricing and budgeting. Despite client demands for transparency, many firms lack updates and training. The report encourages firms to hire pricing and finance experts to improve profitability and efficiency.
GenAI Is Rapidly Making Its Way Into Law Schools (Artificial Lawyer)
A study by the ABA reveals that generative AI is quickly being adopted by US law schools. Many schools now offer AI-focused courses and hands-on learning, prompting a reevaluation of curricula and policies. The future of legal education will likely blend traditional skills with new tech competencies.
Relativity’s New GenAI eDiscovery Tool ‘aiR For Review’ Rolls Out Q3 (Artificial Lawyer)
Relativity is introducing aiR for Review, an AI-driven document review tool, in Q3 for RelativityOne users in the US, UK, Australia, and parts of Europe. This tool, along with aiR for Privilege and aiR for Case Strategy, aims to boost efficiency, consistency, and quality in eDiscovery. Early results indicate significant cost savings and improved accuracy, promising a positive impact on the eDiscovery sector.
How Lawyers Can Stay Necessary (and Employed) in the Age of Generative AI (LawSites)
Generative AI is transforming legal practices by automating research and drafting tasks, impacting junior lawyers the most. Lawyers must adapt by embracing technology and mastering tech-related legal issues. Programs like Cornell Tech's Tech LLM provide essential skills for thriving in this changing landscape.
Clearbrief, a legal tech company leveraging AI for legal writing, raised an additional $4 million, totaling nearly $8 million in funding. The round was led by Authentic Ventures, How Women Invest, and Reign Ventures. CEO Jacqueline Schafer noted the product's rapid growth and significant impact on AmLaw 200 law firms.
Anaqua has introduced AQX 11, an AI-driven IP management platform, marking its biggest release in two decades. The platform aims to boost decision-making and efficiency for IP attorneys through AI, automation, and data integration. This launch celebrates Anaqua's 20th anniversary and sets a new benchmark in IP management technology.
LexisNexis To Develop Tolley+ AI For Tax Professionals (Artificial Lawyer)
LexisNexis is introducing Tolley+ AI, a generative AI platform tailored for tax professionals. It offers features like conversational search, summarization, and intelligent drafting, all supported by verifiable sources. This launch highlights the growing use of AI in professional sectors, enhancing productivity and competitive edge.
The article stresses the need for lawyers to understand and align with client preferences to maintain strong relationships. It points out that small misunderstandings can damage trust between lawyers and clients. To improve relationships, lawyers should actively learn and adapt to each client's unique expectations and needs.
Hungary enacted Act 23 on cybersecurity certification and supervision in May 2023, transposing the NIS2 Directive. Entities must register by 30 June 2024. The Act also implements the EU Regulation on ENISA and cybersecurity certification.
