Suppliers in the legal technology industry are redirecting their focus toward the development of generative artificial intelligence (AI) products. The potential impact that these products can have on lawyers’ working lives is becoming increasingly apparent, causing disruption in the industry. These pioneers range from the Big Four professional service firms to information providers like LexisNexis and Thomson Reuters, as well as managed legal service providers and tech vendors.
Sandeep Agrawal, lead partner for PwC UK’s legal technology business, emphasizes the urgency among tech providers to offer new generative AI tools to their lawyer clients. PwC UK recently announced a partnership with Harvey, a venture supported by OpenAI, to develop a generative AI platform for the legal sector.
Generative AI has the ability to search, synthesize, refashion, and represent information at a rapid pace, making it a valuable tool for various laborious lawyer tasks. Simon Harper, founder of LOD, a managed legal service company, highlights the potential uses of generative AI, such as contract comparison and compliance assistance. LOD has partnered with legal tech consultancy Syke to provide comprehensive advice and tools to clients.
The introduction of generative AI platforms has the potential to transform traditional legal concepts, including billable hours, the distinction between professional service firms and law firms, the use of low-cost labor for certain legal tasks, and regulatory schemes governing lawyers.
Generative AI platforms can perform tasks such as legal research, contract drafting, and due diligence checks that were previously exclusive to qualified lawyers. This poses regulatory questions regarding who is permitted to practice law, according to David Wong, chief product officer for Thomson Reuters.
US courts are starting to outline guidelines for lawyers’ use of generative AI in submissions. Further adoption of generative AI tools will depend on clarifications and amendments to current rules, as the ambiguity makes commercialization challenging.
PwC, however, has already started using client-specific data on their Harvey-based platform to solve client problems. They are working on a model that removes the need for billable hours and focuses on output-based pricing.
In-house counsel at multinational businesses have invited PwC to join law-firm panels, expanding PwC’s share of multinational transactions. KPMG and Microsoft have partnered to develop virtual assistants for tax advice clients, while LexisNexis is creating a chatbot tool for conversational searches of their databases.
Despite concerns over obsolescence, generative AI is expected to make lawyers more efficient rather than replace them entirely. There will, however, be a reshaping of managed service providers. LOD’s partnership with Syke has contributed to significant year-on-year growth.
Senior partners will still play a crucial role in complex deals and courtroom battles, commanding premium rates due to the level of trust clients require.
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