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Friday, May 12, 2023

Are You Selling Copiers & Office Tech to Law Firms? Not For Long

AI Is Changing the Legal Industry
“It has the capacity to reshape the practice of law,” Mr. Villasenor said. Previous waves of automation mostly affected blue-collar jobs in industries like manufacturing, or back-office roles that required many calculations, such as accounting or mortgage processing. 

Rapid developments in AI could pose threats to the type of work performed in white-collar professions, like the practice of law..." - WSJ
Greg's Words

See, I told you so.  One of the most paper-intense business models in the history of print is going to someday soon, be inhabited by Chat Agents.

Imagine ChatGPT attached to the Nexus/Lexus databases.  Every judgment, law, regulation, and legal action is at the disposal of savvy prompt-generating Legal Eagles.

  • Roll-playing with AI before a trial.
  • Digging up every relevant precedence, ever.
  • Determining which jury members are the best to accept and reject.
  • And mathematically predict outcomes.

This changes everything.

A quick summary of a WSJ article.  Enjoy.

Key highlights:

  • Law firms and in-house legal departments are employing AI tools using GPT-4 technology to handle writing and research tasks, traditionally assigned to entry-level lawyers.
  • The AI tools are set to revolutionize white-collar jobs, potentially affecting 44% of legal work, as per a Goldman Sachs report.
  • Despite AI's promise, there are concerns about uploading sensitive data to cloud-based products and the opacity of AI software.

Artificial Intelligence (AI), specifically GPT-4, the latest model developed by OpenAI, is changing the landscape of legal practice. GPT-4, a large language model, can perform complex tasks such as drafting documents, analyzing contracts, and conducting legal research. This development is significant for white-collar occupations, especially the legal sector. John Villasenor, co-director of the University of California, Los Angeles’s Institute for Technology, Law and Policy, noted that GPT-4 "has the capacity to reshape the practice of law."

The increasing use of AI in the legal sector could also change the profession's revenue model, possibly rendering the traditional billable hour model obsolete. Andy Wilson, CEO and co-founder at Logikcull, a legal technology company, said, "They are addicted to that billable hour."

AI's potential to automate the legal sector has been recognized in recent studies. A Goldman Sachs report from March 2023 suggested that 44% of legal work could be automated using emerging AI tools. Concurrently, a joint research paper by Princeton University, the University of Pennsylvania, and New York University emphasized the susceptibility of the legal services industry to occupational change from generative AI.

Min-Kyu Jung, co-founder of Latch, a firm that uses GPT-4 to streamline contract review for lawyers, stated, “A lawyer’s brain is basically a massive database of cases and precedents… It’s something a computer can do much more effectively than a human could.” (WSJ, May 11, 2023)

Nevertheless, AI's adoption in the legal sector is not without its challenges. There are concerns regarding the security of sensitive information uploaded to cloud-based products, as well as the opacity of the AI software. 

Some professionals are hesitant to delegate their judgment to AI.

Despite these reservations, many big firms are already using AI tools in their practice. Global firm Allen & Overy has deployed a GPT-4 based tool named Harvey, while other major law firms and Fortune 50 companies are testing a product called CoCounsel, which uses GPT-4 technology to prepare depositions, perform contract analysis, and accelerate legal research.

The increasing use of AI in the legal sector could also change the profession's revenue model, possibly rendering the traditional billable hour model obsolete. Andy Wilson, CEO and co-founder at Logikcull, a legal technology company, said, "They are addicted to that billable hour."

Tweet: "#AI is transforming the #LegalIndustry, and GPT-4 is leading the charge. But will AI make the billable hour obsolete? #LegalTech"

LinkedIn Introduction: "Artificial Intelligence, particularly GPT-4, is revolutionizing the legal industry, handling tasks that used to take up countless hours. However, as we embrace this technology, are we prepared for the shift it may bring to the traditional revenue models?"

Keyword list: Artificial Intelligence, GPT-4, Legal Industry, Automation, AI Challenges, AI Adoption, Billable Hour, Legal Technology

Image prompt: "A graphic depicting AI technology processing legal documents."

Search Question: "How is GPT-4 transforming the legal industry?"

Song that matches the theme:"Eye in the Sky" by The Alan Parsons Project: The song can metaphorically symbolize the AI's ability to analyze vast amounts of data, similar to an 'eye in the sky'.


"End of the Billable Hour? Law Firms Get on Board with Artificial Intelligence," The Wall Street Journal, May 11, 2023.

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