This was one of those weeks where I had to decide whether to scroll through a few hundred/thousand emails, or just declare email bankruptcy after spending the previous week in Chicago at the AALL Conference. I won’t say exactly what I did… but, I will say it was the faster of the two decisions. ILTACon is coming up next, so be prepared for another OOO message from me while I meet up with a few thousand of my closest friends in Nashville.

Over the past couple of weeks, we’ve seen a lot of legal tech companies raising more capital, with Harvey suddenly becoming a unicorn. But well-known names like Clio and Harvey weren’t the only ones tapping the funding pool.

There was also a lot of activity with government regulations going on this week. Courts and governments were making decisions on the risk that companies face if they use AI in their hiring practices, as well as more decisions on the ability to obtain patent rights on inventions that were created with the use of AI.

As we roll into a new month, it would be strange if Litera didn’t acquire yet another company, wouldn’t it? We also learn that companies like Paxton AI are hitting high scores of accuracies on the Stanford Legal Hallucination Benchmark, and WK is launching new tax products leveraging AI capabilities. And Harvey heads to Japan.

Here are a few of the stories that caught my attention. Remember, you can find these stories and more on the daily AI Lawyer Talking Tech podcast.

Have a good weekend everyone! – GL

  • Litera Acquires FileTrail: Litera, a global leader in legal technology solutions, has recently acquired FileTrail, a leader in information governance and records management. This acquisition expands Litera’s governance offerings, providing a comprehensive Governance, Risk, and Compliance (GRC) solution for law firms and corporations.
  • Definely Receives Innovate UK Grant: Definely, a UK legal tech startup, received a £585,000 grant from Innovate UK to develop new GenAI products for simplifying the legal document review process. This funding will allow Definely to invest in AI-powered technology solutions, enhancing efficiency in navigating legal documents for legal professionals​.
  • Paxton AI Achieves High Benchmark Accuracy: Legal AI company Paxton AI has achieved a remarkable 93.82% accuracy on the Stanford Legal Hallucination Benchmark, demonstrating the reliability of its AI tools for legal research and analysis. This advancement addresses concerns about AI accuracy and promotes responsible use in the legal field.
  • Hotshot Expands GenAI Training for Legal Professionals: At ILTACON, Hotshot showcased its foundational GenAI training for legal professionals. The platform offers over 300 courses covering legal, tech, and business skills, aiming to bridge the knowledge gap on generative AI and its impact on law practice​​.
  • Harvey Partners with Mori Hamada & Matsumoto: In a groundbreaking move, Harvey has partnered with Mori Hamada & Matsumoto, Japan’s leading law firm, to bring AI-enabled legal solutions to the country. This partnership marks a significant step for Harvey as it expands into the Asia-Pacific region, demonstrating the increasing demand for AI solutions in the legal sector.
  • Wolters Kluwer Enhances Legal Research with GenAI: Wolters Kluwer is harnessing generative AI for enhanced tax and legal research. AI-powered tools analyze vast amounts of data, providing legal professionals with insights and predictions, improving efficiency and accessibility in legal research​​.
  • Meta Settles Texas Facial Recognition Lawsuit: Meta has agreed to pay a record $1.4 billion to settle a class-action lawsuit alleging the company violated state privacy laws through its use of facial recognition technology. This settlement represents a significant victory for privacy advocates and highlights the growing concerns over the use of such technology​​.
  • Germany’s AI Inventor Decision: Germany’s highest court has ruled that artificial intelligence cannot hold the title of inventor on patents. The Federal Court of Justice upheld the principle that only humans can be recognized as inventors, despite the growing debate over the role of AI in innovation. This decision has significant implications for the future of AI-generated inventions and patent applications​
  • Robin AI Raises Over $40 Million: Robin AI has raised over $40 million in funding, developing a Legal AI Assistant that can cut contract review time by 85%. The company’s technology, integrated with Anthropic’s Claude LLM, provides AI-suggested edits and support for drafting and negotiating agreements, setting a new standard in legal AI applications​​.
  • DecoverAI Secures $2 Million: DecoverAI, a legal tech startup, has secured $2 million in funding for its AI system designed to automate tasks in legal disputes. This technology aims to enhance productivity, increase accuracy, and uncover valuable insights, revolutionizing the legal industry by providing attorneys with the power of large language models​​.
  • First Street Raises $46 Million: First Street, a provider of climate risk data, secured $46 million in an oversubscribed Series A and Series A-1 funding round. This investment will accelerate the launch of First Street’s software solution for assessing physical climate risks and expand its operations internationally.
  • Federal Court Rules on AI Hiring Bias: A federal court has ruled that AI vendors can be held liable for hiring bias in their tools. This decision stems from a lawsuit against WorkDay, an AI-powered hiring platform accused of discriminating against applicants based on race, age, and disability. The ruling emphasizes the growing importance of AI bias testing and evaluation to prevent unintended discrimination in the workplace​​.
  • EU AI Act Tightens Grip on High-Risk AI Systems: The EU AI Act, effective August 1, 2024, imposes stricter regulations on high-risk AI systems used or developed by U.S. companies operating in the European Union. The act classifies AI systems into four risk categories, with the highest level requiring compliance with extensive obligations. U.S. companies must implement measures to mitigate risks, promote transparency, and enhance accuracy and security​​.