Litera & Zuva release taxonomy, law firm AI training consortium, and Lupl release next-gen platform: here's your weekly recap
Leading law firms and tech providers leverage AI and machine learning to streamline law operations and services. Increasing trends towards AI training, document classification harmonizing, and the wideness of the pay gap are influencing the sector and its future.
Welcome to your Law Tech weekly briefing covering what happened in legal tech last week.
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Core briefing
Takeaways from the key stories
It was an eventful week in the world of legal tech, with several law firms and technology providers rolling out innovative AI and machine learning tools to streamline operations, enhance productivity, and improve service delivery.
Notably, a coalition of eleven global law firms, spearheaded by leading players Eversheds Sutherland, Hogan Lovells, and Norton Rose Fulbright, have instituted AI training courses focused on areas such as privacy, security, data bias, and more, an initiative developed by SkillBurst Interactive. Meanwhile, Legal tech firms Zuva and Litera have developed a document classification taxonomy available to other firms, aiming to harmonize disparate taxonomies and enable more efficient contract analysis and document management.
Elsewhere, legal matter and project management platform Lupl released its second-generation platform, and Linklaters has begun running AI technology trials.
TRENDS
Several key trends emerge from the week's developments. A common theme is the increasing application of AI in the legal profession to enhance efficiency, reduce manual work, and improve the accuracy and relevance of legal work. There's also the burgeoning trend of law firms investing in education and training for their workforce, clearly recognizing the potential and importance of AI in the legal sphere. A notable trend in the realm of law firm economics is the widening pay gap between the highest and lowest-paid partners. This inequality suggests a hyper-competitive environment for top talent, a dynamic that could reshape the broader legal industry.
ANALYSIS
The noticeable emphasis on the use of AI points to a digital revolution within the legal field. As AI training becomes more widespread within law firms, one can anticipate increased sophistication in the way these organizations use the technology. This, coupled with consistency in document classification, courtesy of Zuva and Litera's contributions, poses to increase interoperability, thus streamlining processes and reducing the margin for error. The uptake of these technologies, coupled with increased training, signals a phase of change and adaption for law firms.
However, firms have to be careful of potential pitfalls. As Nørgaard warned, the influx of technological products could lead to a fragmented tech stack, which may disrupt business operations. Implementing AI solutions requires careful strategy and execution to maximize benefits and minimize disruption. On the socioeconomic front, the expanding pay gap within law firms is a matter of concern and indicates an unhealthy income divergence. This kind of inequality, while aiding in talent retention in the short term, could breed discontent in the long run, affecting team morale and productivity. Overall, the legal industry is undergoing a significant transformation towards increased digitalization with AI at the helm. Firms need to navigate this shift wisely, balancing the potential of technology with socio-economic realities for the good of the industry.
You'll find original sources and summaries of all key stories below.
Supplemental
Takeaways from all the other stories
The legal technology sector continues to surge, featuring multiple advancements across the globe. Key players, such as the international law firm Bird & Bird and global firm Dentons, are investing in legal technology leadership roles and AI platforms to drive technological innovation and client value. Legal tech startups are also gaining recognition through initiatives like the American Bar Association's annual TECHSHOW competition. Organizations, including Salin Alliance, Zuva, and Litera, are prioritizing document classification and standardization. On a more regional note, the Middle East's legal tech sector is progressing rapidly, driven by UAE's Clara and the 2023 HiiL Justice Accelerator Programme. Firms like Schneider Wallace are harnessing software technology for efficient case management, and legal professionals are bracing for digital transformation amidst automation challenges.
Trends
One of the primary trends noticeable in the sector has been the rise of AI and machine learning. The introduction of fleetAI, a GPT4-based AI platform by Dentons, and the adoption of AI technology for patent, brand, and international law data management by the World Intellectual Property Organization are notable instances. Legal firms are also increasingly leveraging automation and data analytics to boost competitiveness and efficiency, although parallel trends of 'transformation fatigue' due to rapid digital advancement are evident. Another noteworthy trend is the standardization and interoperability in document classification, which is being facilitated through open-source efforts by Zuva and Litera. Another macro trend is the growing relevance of legal operations. Stephanie Hamon, Head of Legal Operations Consulting at Norton Rose Fulbright, emphasized legal operations' role in balancing risk management with strategic business partnerships amid technology's increasing impact. Events and conferences focussing on AI, robotic law, risk management, leadership, and career growth are also trending in the legal realm. Meanwhile, the implementation and upgrading of case management systems for increased efficiency are evident, with cloud-based systems like Clarra and DivorceHelp123 emerging as popular choices.
Analysis
The continual technological innovation is evident across the legal sector underlines the extent to which the industry is embracing digital transformation. For legal professionals, the emphasis lies in adapting to these advancements while identifying their best uses within the profession. The rise of AI and machine learning will offer significant benefits to professionals, including the potential to handle vast volumes of data and automate routine tasks. This will free up valuable time for lawyers to focus more on strategic, value-added work. Yet, they should remain alert to the risk of inaccuracies and the necessity of human oversight. Emerging trends towards standardization and interoperability highlight the growing importance of data sharing and synergy within the profession. For legal professionals, investment in such open-source solutions could provide vital facilitation in document classification and management, amplifying their operational efficiency. The increasing emphasis on legal operations highlights the shifting role of legal teams as strategic business partners. As legal divisions evolve, professionals should focus on bolstering their data management, change management, and strategic capabilities. Despite the accelerating pace of digital transformation, concerns about 'transformation fatigue' should not be overlooked. Legal professionals need to understand that adopting new technologies should complement and augment human capabilities rather than replace them. Ultimately, the most successful firms will be those that strike the right balance between embracing innovation and retaining a human touch.
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Key stories
A group of 11 international law firms have collaborated to establish a series of online training sessions on generative AI for legal professionals, offered to other firms on a subscription basis. The Generative AI Fundamentals for Law Firms program aims to tackle privacy and security issues, data bias implications, ethical considerations and other relevant areas. The courses are being created in partnership with SkillBurst Interactive, which offers on-demand learning services for law firms and corporations. A range of law firms, such as Eversheds Sutherland and Norton Rose Fulbright, form part of the consortium. To determine course content, SkillBurst surveyed executives and lawyers about their key concerns and topics they found important. The first modules in the course have already been introduced, with two new ones being added each month.
Legal tech companies Zuva and Litera have developed a multi-level document classification system for the legal industry and made it open source. The taxonomy, which includes 225 document classifications, has been donated to the SALI Alliance, a group that works to standardise legal data. The system, available immediately through Zuva's API, helps law firms and corporations improve efficiency and accuracy of record-keeping by automatically identifying and organising document type. The goal is to promote interoperability and standardisation across legal firms and corporations, often using multiple systems for contract analysis and document management. The taxonomy can be particularly useful for larger firms trying to bring order to their document management systems, a process that can now be automated rather than done manually or through expensive review teams.
The Economics of Superstars (Adam Smith, Esq.)
Law firms are adjusting their compensation formulas to increase the pay gap between the highest and lowest paid partners, rewarding the top producers. This strategy aims to protect a firm’s most profitable practices from poaching by higher-paying firms. It's becoming indisputable that top performers tend to drive institutional change and carry significant influence within their organizations. Yet larger trends in income inequality and the growing pressure for lawyers to not only excel in their practice but also generate and delegate business signal a shifting landscape in the legal field. This development may challenge traditional notions of partnership and the social contract that has historically attracted professionals to the sector. However, the economic forces behind these changes appear inevitable and point to an evolving understanding of elite law firm partnership increasingly characterized by a perform-or-out model.
Are fragmented legal tech stacks a recipe for failure? (Legal Dive - Latest News)
Troels Nørgaard from Legisway highlights the challenges facing the legal tech industry amid its rapid transformation. He notes that while there has been a proliferation of AI-driven solutions that have increased efficiency and productivity, many legal departments struggle to identify the right platform and to integrate it within their existing tech framework. Too often, these solutions lead to complications, fragmentation and disconnection. For adoption to be successful, Nørgaard suggests that technology solutions should demonstrate a high degree of interoperability with existing systems, have comprehensive features, and be user-friendly. Integrated platforms designed for small to mid-size end users that are easy to use and seamlessly integrate with existing systems can drive productivity and are likely to be the future of the legal tech industry.
Legal tech company Lupl is set to launch the second generation of its matter management platform. The updated platform includes a generative AI assistant, UI changes and broader capabilities such as new integration features. Lupl has invested considerably in using AI to make legal matter management more efficient, with the assistant allowing users to organise legal matters using text prompts. Another significant addition is the further development and expansion of Lupl's matter template feature. This is in response to strong client demand for more customisation options and increased software automation. Lupl's CEO, Jeff Green, said that enhancing user workflow and reducing the administrative burden of legal professionals is at the core of these updates.
Linklaters, the "magic circle" firm, has been working with generative AI technologies for multiple applications. This involves the use of Google Cloud’s Vertex AI for search, Microsoft’s Azure OpenAI for chatbot development and Casetext’s CoCounsel, recently acquired by Thomson Reuters. The firm has detailed its Proof of Concepts (POCs) on its website and established an internal steering committee comprising senior partners, executives, tech sector practitioners, the CTO and a senior risk lawyer to guide its AI initiatives. The chatbot has been deployed for a wide range of work, including drafting and content creation, while the Vertex AI has been applied for improving search capabilities. The firm has also carried out a global trial of CoCounsel to aid with tasks such as legal research and contract data extraction.
Legal tech start-up Lupl has announced a major upgrade of its platform that boasts new features aimed at optimizing legal work management. Sparked by customer feedback, this next-generation platform showcases upgrades including the Legal Project Management Toolkit, Automation and AI systems, customizable views and integrated know-hows. A key highlight is Lupl’s no-code form builder, Lupl Forms, which facilitates efficient legal work progression. The release also boasts huge improvements in integrations with other platforms like iManage, NetDocuments and DocuSign. Concurrently, the platform has secured ISO 27001 and SOC 2 Type 2 certifications, globally recognized standards in securing information, further enhancing its appeal to potential clients. Lupl's developments underline its commitment to revolutionize the traditional legal work management system by maximizing efficiency, customization, flexibility,
All stories
Bird & Bird appoints new head of legaltech and innovation (Legal IT Insider)
International law firm Bird & Bird has named Hélder Santos as its head of legaltech and innovation. Based in Frankfurt, Santos will be responsible for implementing legaltech solutions across the firm's global offices and will work closely with the international leadership team. His primary role will be to bolster the firm's legaltech capabilities and improve client value.
Legal Geek pulls out ALL the stops to get you to the conference: Details here (Legal IT Insider)
Legal Geek is providing alternative transportation for its two-day conference attendees due to a potential rail and tube strike on October 4. The company plans to offer free boats and luxury minibuses, and will also contribute £30 towards taxi fares or car parking expenses. The strike will not impact the Elizabeth Line, DLR, or London Overground, which will be operational on the conference's second day.
The American Bar Association (ABA) is inviting legal tech startups to compete in its annual TECHSHOW for the eighth year. The competition, limited to startups catering to legal professionals who have never exhibited at a national legal technology conference, will feature 15 selected startups in a live pitch competition. The winner will get a free booth at the 2025 TECHSHOW, a 12-month listing on the ABA Legal Technology Resource Center’s Buyer’s Guide, and a $5,000 advertising credit.
Joe Cohen on Dentons’ fleetAI: ‘It Gives Unique Perspectives’ (Artificial Lawyer)
Global law firm Dentons has introduced fleetAI, a GPT4-based AI platform, for its staff and lawyers to use in client work. The tool can analyze and generate over 7 million words per minute and is expected to enhance efficiency, especially in generating automated contract-specific reports. Launched in September, the platform is designed to maintain confidentiality and has been positively received, marking a significant innovation in the legal industry.
Zuva and Litera have open-sourced a document classification taxonomy via the Standards Advancement for the Legal Industry (SALI) Alliance. The taxonomy, which covers 225 document types, aims to improve document classification in law firms' management systems, allowing for more efficient searches. It is built on a framework started at Kira in 2016/17 and is designed to be interchangeable with other systems, promoting standardization and interoperability across the legal industry.
San Francisco-based law firm Schneider Wallace has created a case management software, Clarra, to improve efficiency in docket-driven litigation practices. The cloud-based platform manages matters, events, tasks, deadlines, documents, timekeeping, and reports. It has improved the firm's attorney-to-staff ratio to 3:1 and supported its growth. The software, suitable for civil litigation firms of any size, offers features like a consolidated view of deadlines, a document tracking mail log, and integration with CalendarRules for court calendaring.
News Roundup: Legal Tech in the Middle East (The Legal Technologist)
The Middle East's legaltech sector is evolving, with UAE's Clara expanding into Saudi Arabia and startups joining the 2023 HiiL Justice Accelerator Programme. The merger of law and technology is set to redefine litigation and improve justice accessibility. Notable advancements involve legal service digitization, process automation, and increased transparency in legal proceedings. The Saudi Ministry of Justice also hosted a conference to discuss digital transformation in the justice sector, highlighting the significance of artificial intelligence.
Automation in Legal Services: Don’t Try to Boil the Ocean (The Legal Technologist)
The legal industry is increasingly using automation to enhance competitiveness and meet client needs, with 60% of law departments implementing legal data analytics tools in 2022. However, the sector is experiencing 'transformation fatigue' due to the influx of new technologies. Automation is primarily used in contract management, legal research, and payments. The use of third-party managed accounts (TPMAs) can boost operational efficiency and client relationships. Experts advise focusing on areas where technology can augment human capabilities for successful digital transformation.
Career Story: Doruntina Berisha (The Legal Technologist)
Doruntina Berisha, an independent Legal Tech specialist, outlines her career path from studying physics and law at the University of Vienna to becoming Head of Legal Tech at Code Law in Zurich. Her experience includes developing a remote teaching platform amid the Covid-19 pandemic and coordinating legal tech events. Berisha encourages those interested in this field to be passionate, resilient, and open to networking opportunities.
Technologies in IP Administration (The Legal Technologist)
The World Intellectual Property Organization (WIPO) has adopted AI technology to manage its extensive intellectual property data, including patents, brands, designs, and international laws. AI solutions being used include automated translation, speech-to-text transcription, and image similarity search features. However, concerns about the accuracy of AI's work persist.
Stephanie Hamon, Legal Ops Head, NRF: ‘The Biggest Challenge? Gen AI FOMO’ (Artificial Lawyer)
Stephanie Hamon, Head of Legal Operations Consulting at Norton Rose Fulbright, has discussed the changing role of in-house legal teams and the impact of technology on the legal industry. She notes a shift towards these teams becoming strategic business partners, with a growing emphasis on data and change management. Hamon also highlighted the potential of generative AI, but cautioned against neglecting basic elements in the rush to adopt new technologies. She stressed the role of empathy in effective change management.
Budgets Suck, But Profit Plans Rock (Attorney at Work)
The article highlights the significance of profit plans over budgets for law firms, arguing that they are less restrictive and more encouraging. It provides guidance on crafting a profit plan and emphasizes the need for regular reviews and tweaks. The piece concludes by advising law firm owners to ensure they receive adequate compensation for their efforts and risks.
Matters.Cloud has introduced a feature that automatically generates contacts when filing emails, improving client and contact management for law firms. The tool identifies and adds new contacts during email filing, prevents duplicate entries, and integrates with top document management systems. It also associates new and existing contacts with each case, offering a comprehensive view of all key participants. This innovation significantly streamlines contact management for legal professionals.
UK Contract Lifecycle Management (CLM) software provider, Summize, has launched a US subsidiary and opened a new office in Boston following a 107% growth in new ARR. This marks the company's third year of triple-digit growth. Summize plans to attribute over 40% of its revenue to US clients within the next year. The Boston office will facilitate the expansion of its American client portfolio.
In-house counsel events for Q4 2023 (Legal Dive - Latest News)
The article outlines several legal conferences and events for the rest of the year, including the 2023 AI and Robotics Institute, the 2023 GenAI and Emerging Technology Forum, Women, Influence & Power in Law 2023, the ACC 2023 Annual Meeting, the 2023 General Counsel Summit, and the NAWL 2023 General Counsel Institute. These events are designed to offer legal professionals insights into AI, robotics law, risk management, leadership, and career growth.
Stephanie Hamon, Head of Legal Operations Consulting at Norton Rose Fulbright, highlighted the growing significance of legal operations in the legal industry. She emphasized the need for legal teams to balance risk management with strategic business partnerships, and the role of change management and empathy in promoting innovation. Hamon also cautioned against prioritizing new technologies like generative AI over the foundational aspects of legal departments.
SEC fines Newell Brands $12.5M for misleading investors (Legal Dive - Latest News)
Newell Brands has been fined $12.5 million by the Securities and Exchange Commission (SEC) for misleading investors about sales growth in 2016 and 2017. The company and its former CEO, Michael Polk, who was fined $110,000, allegedly manipulated accounting controls and ignored accounting principles to inflate sales. The company continued these practices despite warnings from an audit committee member and the company's auditor. Newell neither admitted nor denied the SEC's findings.
Ashurst hires Ruth Ward as global director of knowledge (Legal IT Insider)
Ashurst, a leading UK law firm, has named Ruth Ward as its global director of knowledge and expertise. Ward brings nearly two decades of experience as head of knowledge at Allen & Overy and has also worked for the Government Legal Department. Her expertise in the legal and tech industries is anticipated to strengthen Ashurst's client delivery and digital competencies.
June Hsiao Liebert, the first Asian-American president of the American Association of Law Libraries (AALL), has taken office amid fears that artificial intelligence could jeopardize law library professionals. As the director of information services at O’Melveny & Myers, Liebert has a strong IT and information management background. She discusses the current and future state of the profession in a recent podcast.
Clarra, a new cloud-based legal case management software, has been launched to help law firms manage litigation workflows. The SaaS application is designed to enhance efficiency and outcomes, overseeing a case from complaint filing to resolution. The platform ensures no deadlines are missed and is initially free, with subscription plans starting at $47 per user per month.
What GCs need to know about algorithmic bias (Legal Dive - Latest News)
The article explores the challenges of detecting and rectifying bias in AI technologies, especially in hiring. It underscores the technical and legal difficulties, including defining and quantifying bias and potential legal liabilities. Authors Bradley Merrill Thompson and Michael Shumpert stress the importance of collaboration between data scientists and legal experts to ensure AI models comply with anti-discrimination laws. They also highlight the need for routine audits to identify and address bias over time.
Women top men in GC pay at largest public companies (Legal Dive - Latest News)
In 2020, female general counsels (GCs) at the top 500 US companies earned a median salary of $3.2 million, compared to $3 million for males, reports Equilar. This pay difference stems from a 47% pay rise for women since 2018, compared to a 14% increase for men. Women now comprise 36% of GCs, a rise from 27% five years ago. GC compensation is largely influenced by company size, industry, and performance incentives.
Conexus Law selects Tessaract’s SaaS practice and case management system (Legal IT Insider)
UK-based Conexus Law has selected Tessaract's SaaS practice and case management system to enhance its IT infrastructure services. The decision follows Conexus Law's 2019 initiative to secure external funding for technological investment. Tessaract's integrated all-in-one solution, a notable disruptor in the Practice Management System (PMS) space, is anticipated to support Conexus Law's growth and improve its client services.
DivorceHelp123 is a cloud-based software for divorce and family law attorneys. It helps manage cases, collect client information, generate legal documents, and maintain client communication. The software integrates with Clio's law practice management platform and Dropbox, enabling a two-way synchronization of client and contact data. It also features a client-facing app for direct client engagement. DivorceHelp123 offers a free 30-day trial, with subscriptions starting at $35 per month.
What to Wear? Pantless in Seattle (Attorney at Work)
The transition back to physical offices has sparked discussions about law firm dress codes, with critics arguing they unfairly impact women and diverse lawyers. The article covers the author's personal encounters with dress code regulations throughout her legal career, including a prohibition on women wearing pants in court in the 1980s and 2000s, and the recent challenges of appropriate dress during the pandemic. The author concludes by expressing her reluctance to adhere to these standards.
Thomson Reuters' acquisition of Casetext for $650M exemplifies the ongoing trend of legal tech mergers, despite economic instability. A survey of law professionals revealed mixed views on merger success, with most respondents from private firms. Factors contributing to unsuccessful mergers include excessive price hikes, forced product bundling, poor integration, loss of content usability, and declining customer service and product quality.
Bundledocs, a cloud-based document binding software provider, has joined forces with IT consultancy 3545 Consulting Global to improve digital pre-trial solutions for law firms. This partnership aims to provide legal professionals with advice on cloud-based document binding and PDF editing. The collaboration highlights the increasing importance of PDF cloud solutions in law firms' shift to cloud-based document solutions. Bundledocs, a leader in electronic document production, serves over 1,200 clients in more than 34 countries.
Lupl unveils next gen platform plus ISO 27001 and SOC 2 certification (Legal IT Insider)
Lupl has unveiled its upgraded legal platform, which includes features like a Legal Project Management Toolkit, Automation & AI, Custom Views, Integrated Know-How, and Enhanced Integrations and Open API. The platform has also secured ISO 27001 and SOC 2 Type 2 security certifications. The new update is designed to streamline legal work management and enhance integration with tech stacks across various departments.
RIP Michael Mills, Legal Tech Visionary and Innovator (LawSites)
The legal sector is mourning the death of Michael Mills, a pioneer in AI for legal practice and the president and cofounder of Neota Logic. Recognized globally for his visionary strategy in law firm technology, Mills held significant positions including past president of the College of Law Practice Management and founding director of Pro Bono Net. A memorial website has been established in his honor.
Coming Monday at ClioCon: There Will Be Maps! (LawSites)
The 11th annual Clio Cloud Conference, a prominent event in legal tech and innovation, is expected to be the largest to date with 3,500 attendees. The event will introduce physical maps and an improved app for better navigation, following previous criticisms. The conference will provide networking opportunities and informal conversation zones for legal professionals, thought leaders, and legal tech vendors. The main goal of the event is to enhance the practice of law through technology and innovation.
Marcin Święty, Chief Security Officer at Relativity, has been awarded CISO of the Year at the CyberSecurity Breakthrough Awards. As leader of Calder7, Relativity's global security team, Święty has overseen the implementation of various security programs, including the RelativityOne Security Center and the Relativity Threat Intel Feed. The company has also introduced AI-driven solutions for personal information detection and data breach response in the legal sector.
How National Life Group’s IT reliance helped make CLM a success (Legal Dive - Latest News)
National Life Group's legal team, in conjunction with the IT department, has successfully implemented a contract lifecycle management (CLM) system. This system has improved visibility into contract workflows and enhanced post-signature contract management. However, the process underscored the importance of early stakeholder involvement and a robust change management strategy. The project underlined the significance of CLM technology within the organization, leading to an increased budget.
Generative AI and the Legal Industry: Q&A with Expert Owen Morris (WardblawG)
Generative AI is being utilized by law firms in various ways, with many firms having AI projects in progress. It can be used for document generation, summarization, and search, providing a starting point for lawyers to refine and save time. While there are advantages to using generative AI, law firms must be cautious of potential risks, such as inaccuracies and the potential for AI to replace human professionals.
Innovation Through Novel Approaches (Fringe Legal)
The article explores the impact of innovation on persistent issues, exemplified by mobile banking's evolution. Mobile banking, driven by smartphone technology, has revolutionized traditional banking and enhanced financial inclusion, particularly in developing nations. However, it also raises cybersecurity concerns, underscoring the need for regulatory measures to guarantee the security and longevity of mobile banking systems.
