This week on The Geek in Review, we discuss the future of legal technology with Dr. Megan Ma, a distinguished research fellow and Associate Director of the Stanford Program in Law, Science, and Technology at the Stanford Center for Legal Informatics, also known as Codex. Dr. Ma’s groundbreaking work in integrating generative AI into legal applications takes center stage as she shares her insights on translating legal knowledge into code and the implications of human-machine collaboration in the legal field.

Dr. Ma discusses her unique background in law and linguistics, emphasizing the challenges of translating legal language into deterministic computer code. Her fascination with language and its nuances has inspired her research at Codex, where she explores how legal concepts can be effectively communicated through technology. She recounts her academic journey, explaining how her multilingual skills and interest in natural language processing have shaped her approach to developing legal tech solutions.

At Codex, the mission is to empower the legal system through innovative technology. Dr. Ma describes Codex as a collaborative hub, where experts from various fields work together to address inefficiencies and pain points in the legal system. She highlights the center’s commitment to human-centered design, ensuring that their technological advancements are co-created with relevant stakeholders. This approach ensures that the tools and solutions developed at Codex are practical and beneficial for both lawyers and clients.

One of the standout initiatives at Codex is their mentorship model, designed to mirror the traditional mentorship found in law firms. Dr. Ma explains how they use AI to create legal personas based on the redline practices of experienced partners. This innovative approach allows junior associates to receive focused guidance, helping them improve their skills and knowledge in a more efficient and impactful manner. By integrating AI into the mentorship process, Codex aims to bridge the gap between theoretical legal education and practical experience.

Dr. Ma introduces the concept of agentic workflows, where AI agents make autonomous decisions based on specified goals rather than predefined tasks. This dynamic interaction is particularly useful in legal negotiations, where unforeseen circumstances often arise. The negotiation model developed by Codex includes features like client rooms, expert consultations, and various levels of difficulty to simulate real-world scenarios. This hands-on training tool is designed to help young lawyers navigate complex negotiations and improve their problem-solving skills.

In the Crystal Ball segment, Dr. Ma shares her vision for the future of legal technology. She emphasizes the importance of developing tools that tap into the legal brain, focusing on the process behind legal decisions rather than just the end product. By capturing the experiential knowledge of seasoned lawyers, Codex aims to create more effective and intuitive AI tools that can support the legal profession in new and innovative ways. Dr. Ma’s insights highlight the potential for AI to transform the legal field, making it more efficient, accessible, and responsive to the needs of both practitioners and clients.

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Music: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jerry David DeCicca⁠⁠⁠⁠⁠⁠⁠⁠

Transcript

Continue Reading Training AI to Mentor Like a Partner: Insights from Dr. Megan Ma

If you’re like me, your in-box (and SPAM filter) were packed with ILTA messages to come visit vendors at booth #XXX. It is amazing how many vendors and legal tech folks who are going to be there and vying for your attention next week. I have to say that my calendar is packed, and that’s before I even find good educational sessions to attend. If you are going to be there and you want to see me, you better get on the calendar today. 😉

Lots of action in the legal tech industry this week. The Stanford CODEX/Flatiron M&A Simulator is one that we are monitoring, and trying out. We had Flatiron’s Conrad Everhard on the Geek in Review this week, and (spoiler) we have Dr. Megan Ma from CODEX on the show next week talking about this AI training tool. If you are looking for something practical, you should definitely check this tool out.

Here’s a few articles that caught my eye this week. See you in Nashville! – GL

 

  • Gravity Stack Embraces Generative AI
    Gravity Stack, a legal tech and consulting group affiliated with Reed Smith, has fully embraced generative artificial intelligence (AI). The company is advising clients on AI implementation, utilizing technologies like Perplexity AI and OpenAI’s SearchGPT. Gravity Stack’s shift towards AI highlights the legal industry’s increasing reliance on advanced technologies to improve productivity and adaptability in legal processes​.
  • Flatiron Launches GenAI M&A Training Simulator
    Stanford Law School’s Codex and Flatiron Law Group have introduced a groundbreaking AI-driven M&A negotiation simulator. This tool allows legal professionals to practice negotiations with AI agents representing opposing parties. The simulator aims to bridge the gap between academic training and real-world legal practice, making it a significant advancement in legal education​
  • Elon Musk Sues OpenAI Over Mission Deviation
    Elon Musk has filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging that the organization deviated from its original non-profit mission by shifting towards for-profit activities. This lawsuit underscores the growing tensions in the AI industry as companies balance innovation with ethical considerations​.
  • EU AI Act: A New Era of AI Regulation
    The European Union has published its comprehensive AI Act, marking the first global regulation of its kind. The Act categorizes AI systems based on risk and imposes strict requirements on high-risk systems. This regulation will significantly impact AI development and deployment, especially for companies operating within or targeting the EU market​.
  • Illinois Amends Biometric Information Privacy Act
    Illinois has enacted an amendment to its strict Biometric Information Privacy Act (BIPA), limiting the number of violations an individual can claim. This change is expected to reduce the potential for massive damage awards in BIPA class actions, marking a significant shift in biometric privacy law​.
  • American Bar Association Issues AI Ethics Guidelines
    The American Bar Association (ABA) has released new guidelines for lawyers using generative AI tools. The guidelines emphasize the importance of competence, confidentiality, and transparency when using AI in legal practice. This marks a critical step in ensuring the ethical use of AI in the legal profession​.
  • Microsoft vs. Delta: IT Infrastructure Dispute
    In a legal dispute following a global technology outage, Microsoft has accused Delta Air Lines of failing to modernize its IT infrastructure, contributing to the extended disruption. This case highlights the challenges companies face when relying on legacy systems and the potential legal repercussions​.
  • Stanford’s AI-Powered Legal Training Simulator
    Stanford Law School’s Codex, in partnership with Flatiron Law Group, has launched an AI-powered M&A training simulator. This innovative tool allows legal professionals to practice negotiations in a simulated environment, offering real-time feedback and enhancing legal training through AI​.
  • Texas AG Settles $1.4 Billion Facial Recognition Suit with Meta
    The Texas Attorney General’s office has reached a $1.4 billion settlement with Meta over the unauthorized use of facial recognition technology. This case signals increased enforcement of privacy laws and highlights the legal risks associated with biometric data​.
  • Legal Tech Innovator David Cambria Joins Epiq
    David Cambria, known as the “Godfather of Legal Operations,” has joined Epiq as Managing Director of the Legal Business Advisory Practice. Cambria’s move to Epiq underscores the growing importance of legal operations in modern legal practice​.
  • EU AI Office Calls for Participants to Draft AI Code of Practice
    The European Union Artificial Intelligence Office is seeking participants to help draft the AI Code of Practice as mandated by the AI Act. This code will guide AI developers in complying with new regulations, ensuring that AI deployment in the EU adheres to ethical and legal standards​.
  • Google Analytics 4 for Law Firms
    Google Analytics 4 (GA4) has become a vital tool for law firms, offering insights into website performance with an event-based data model that tracks user interactions more accurately. This allows firms to make data-driven decisions, optimize user experiences, and improve client acquisition strategies .
  • EmotionTrac Prioritizes Human Expertise in AI Strategy
    EmotionTrac, a legal AI startup, emphasizes human oversight in its technology. While the company uses AI for tasks like emotion-tracking and jury analysis, it believes that the limitations of large language models (LLMs) like ChatGPT necessitate careful human involvement, particularly in ensuring accuracy and reliability in legal contexts .

This week, we sit down with Conrad Everhard, founding partner of Flatiron LLP, a pioneering law firm that has revolutionized M&A services with their innovative flat fee model. Conrad shares the fascinating origin story of Flatiron, its unique approach to legal services, and the challenges and successes they’ve encountered along the way.

Everhard recounts the inception of Flatiron LLP, co-founded with Mark Haddad and Lenny Nuara, former big law partners, who sought to modernize legal services post-financial crisis. Despite their elite backgrounds, reentering the private law firm space proved challenging due to their detachment from Big Law for a few years. Driven by their frustrations with Big Law’s resistance to change and the convergence of factors such as acceptance of virtual models and access to senior labor, they took the bold step of founding Flatiron. This new model law firm leverages technology and client-focused solutions to disrupt traditional legal services.

When it comes to Flatiron’s groundbreaking flat fee M&A services, Conrad explains that the motivation behind this disruptive approach was to bring more transparency, predictability, and cost-efficiency to the fee structure. Over several years, Flatiron has honed a model that relies on low overhead, innovative labor deployment, and technological advancements. They operate on a general contractor model, utilizing a network of expert contractors on a project basis, which allows them to offer high-quality services at a lower and more predictable cost compared to Big Law.

Conrad highlights Flatiron’s development of “Deal Driver,” a workstream efficiency platform that streamlines the M&A process. Initially created as an internal tool, Deal Driver organizes and manages data through each phase of a deal, incorporating AI and human intelligence to enhance efficiency. This platform has not only improved their internal processes but has also gained popularity among clients, leading to its spin-off as a proprietary platform. The success of Deal Driver underscores Flatiron’s commitment to innovation and client satisfaction.

Flatiron’s unique labor pool taps into senior associates and counsel with elite firm backgrounds who, for various reasons, seek alternative work environments. Flatiron offers better pay and a more flexible, engaging work culture, attracting highly skilled professionals. Conrad emphasizes the importance of their “coolness factor” in recruitment and client acquisition, noting their collaborations with Stanford Codex and the positive reception from private equity clients who appreciate their efficiency and data management capabilities.

In the crystal ball segment, Conrad speculates on the future of the legal industry. He predicts that traditional Big Law firms may eventually adopt more innovative models, possibly through spin-offs or off-brand ventures, to stay competitive. Additionally, he foresees alternative legal service providers and sandbox experiments in places like Utah and Arizona challenging the traditional legal market. Despite the potential for disruption, Conrad remains confident in Flatiron’s model, emphasizing the green field of opportunities ahead and their readiness to adapt and innovate continuously.

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Contact Us: 

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Email: geekinreviewpodcast@gmail.com
Music: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jerry David DeCicca⁠⁠⁠⁠⁠⁠⁠⁠⁠

Flatiron LLP: ⁠flatiron.legal
Conrad Everhard on LinkedIn: ⁠Conrad Everhard⁠
Email: ⁠ceverhard@flatiron.legal⁠
Flatiron’s Deal Model
Negotiation Simulator
Demo at Codex
Article on Fixed M&A Deals

TRANSCRIPT

Continue Reading Inside Flatiron’s Flat-Rate M&A Model with Conrad Everhard

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​​.

This week, we discuss the evolving landscape of professional development and training within the legal industry. With a special focus on innovative methods and technological advancements, this episode features insights from three distinguished guests: Adam Stofsky, CEO at Briefly, Ian Nelson, Co-Founder of Hotshot, and Caitlin Vaughn, Managing Director of Learning and Professional Development at Goodwin. Together, they explore how modern training programs are being reshaped to meet the demands of a rapidly changing legal environment.

Staying Relevant in Rapidly Changing Times
Adam Stofsky discusses the challenges and strategies for keeping legal training content fresh and relevant. Briefly’s custom content creation, which addresses real-time issues faced by legal teams, ensures that the material is always up-to-date. Stofsky highlights the importance of integrating modern tools like AI to enhance training efficiency without losing the human touch. The conversation transitions into how technology like AI and tools such as Descript are transforming content creation, allowing for more efficient and scalable training solutions.

Practical Skills and Training Innovation
Ian Nelson emphasizes the importance of practical skills over theoretical knowledge in legal training. He shares Hotshot’s approach to delivering hands-on, practical training that prepares lawyers for real-world scenarios. Feedback from users indicates a high demand for practical training that directly supports their daily tasks. Nelson also touches on the strategic importance of training programs, noting how firms are increasingly integrating such programs into their overall professional development plans.

Goodwin’s Comprehensive Training Program
Caitlin Vaughn presents an in-depth look at Goodwin’s first-year associate training program, a full-time, eight-week initiative that combines technical and professional skills development. Vaughn explains how the program blends live sessions, asynchronous learning, and interactive components to create a holistic training experience. This innovative approach not only prepares new associates for their roles but also fosters a culture of continuous learning. Vaughn also discusses the integration of laterals, focusing on personalized training plans to address individual needs and ensure smooth transitions.

Future Challenges and Opportunities
In the crystal ball segment, the guests share their insights on the future of legal training. They discuss the challenges of managing rapid changes in law, technology, and training methodologies. The consensus is that while there are significant challenges, there are also immense opportunities to innovate and improve the effectiveness of legal training. Customization, quality content, and effective pacing are highlighted as key factors for successful training programs in the future.

The discussions underscore the importance of innovative, practical, and engaging training solutions that keep pace with the evolving demands of the legal profession. As the legal landscape continues to change, firms that embrace these advancements will be better positioned to equip their lawyers with the skills they need to succeed.

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Twitter: ⁠⁠⁠⁠⁠@gebauerm⁠⁠⁠⁠⁠, or ⁠⁠⁠⁠⁠@glambert⁠⁠⁠⁠⁠
Email: geekinreviewpodcast@gmail.com
Music: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jerry David DeCicca⁠⁠⁠⁠⁠⁠⁠⁠

Contact Information:

Adam Stofsky: Adam@brieflynow.com | Briefly | LinkedIn: Adam Stofsky
Ian Nelson: Ian@hotshotlegal.com | Hotshot | LinkedIn: Ian Nelson
Caitlin Vaughn: LinkedIn: Caitlin Vaughn

Transcript:

Continue Reading The Evolving Role of Training and Professional Development in the Legal Industry

Hiking the Windsor Trail in the Pecos Wilderness

I’m not a backpacker. Sure, I’ve gone on day hikes with a rucksack and granola bars. I regularly go kayaking in alligator infested bayous (still haven’t seen one in the water), I have even been glamping under the big and bright Texas stars. Yet, with the exception of scouting experiences as a child and one ill-fated camping trip in a truck pop-up tent, at the end of the day, I have always found my way back to a comfortable bed and a shower. Until a couple weeks ago, when I agreed to go backpacking in the wilderness of New Mexico.

My partner in crime, trail name Chiripada, has done this before and loves it. He picked up his trail name from a winery we passed, and it turned out to be more apropos than we realized. Like many Spanish idiomatic words and phrases, translation into English does not necessarily capture the subtlety of the true meaning. Chiripada is one of those words. It roughly means “unexpected luck” or good luck within bad luck. An example is that you spill your coffee, but you find money under the table when you clean up. That was much of our trip in a nutshell.

You would not think a career in legal innovation would prepare you for your first backpacking trip, but surprisingly, similar lessons can be applied to both.

1. Expect the Unexpected

Just like handling evaluations of tools, nothing ever goes completely according to plan. And we had more than a few things not go according to plan. Thankfully our chiripada prevailed–no one was injured and no major damage occurred.

We knew Hurricane Beryl would hit land in Texas, but at the time of our departure, it was not estimated to have a great impact where I live. Nevertheless, I prepared my family, stocking up with water and food (bread and milk!), and lots of instructions. Which turned out to be a good thing because the day before the storm hit, we discovered the eye was going right over my town.

It wasn’t supposed to storm at Williams Lake (elevation 11040 feet). There was not supposed to be thunder and lightning and cold temperatures. I can now say a severe thunderstorm at elevation in a tent is quite a different experience than when you are sitting in your house. At home, you worry the power will go out. In the wilderness, you worry you will get struck by lightning. We survived and had a brisk but lovely hike down the mountain early the next morning.

We never made it to one camping destination at Stewart Lake (elevation 10232 feet) (more on that later). We were lucky to find one flat spot before it got dark. Thankful, we settled in for the night only to be awakened at 3:00 am by an irritated bear. I know it was irritated because I looked up “bear sounds” after our return to civilization and learned that huffing means a bear is upset. Which was likely because a tent with smelly humans was on its turf. We sat in the dark, tense and listening until our guest moved on into the night.

2. But Prepare as Best You Can

When evaluating tools, it is necessary to prepare. You assess tools, you prepare requirements and questions to ask vendors. When you are presenting, you make an outline, craft a presentation and review it.

My job for this trip was to prepare the itinerary and book the rooms we would stay in between hiking jaunts (I would be useless figuring out what to pack-I left that to the expert). I took my job seriously, making an excel sheet of the places we would go, careful to include driving distance, hiking distance and anticipated time allotted for each. Did we completely adhere to this itinerary? No. Was it useful to know our timeline and keep track of our days (you do forget what day it is)? Yes.

3. Travel Light

Continue Reading Ten Legal Innovation Lessons for the Trail

I just flew back from Chicago… and boy are my arms tired. 😉

Besides getting to wear my flashy new white suit for the American Association of Law Libraries (AALL) Gallagher Awards ceremony, I also caught up with lots of colleagues, old and new. AALL is one of those sneaky tech conferences that dresses up as a law library conference. If you’ve never been to one, I highly recommend it if you like the combination of smart people, vendors who focus on displaying practical application of technologies, and a collaborative environment. Next year is in Portland, so that’s also a very cool city (literally and figuratively) to travel.

There’s been lots of activity this week in the legal tech industry. Some of which was announced at AALL’s conference and listed below.

Next up is ILTACon. I just decided to attend, so let me know if you are going to be there!

Remember to check out the AI Lawyer Talking Tech daily podcast for stories like these and more.

  • LexisNexis Completes Acquisition of Henchman
    LexisNexis has acquired Henchman, a legal tech company specializing in data enrichment from Document Management Systems (DMS). This acquisition will enhance LexisNexis’ AI technology, providing personalized generative AI drafting solutions within Lexis+ AI and Lexis Create. Henchman’s technology will integrate with LexisNexis’ content, helping law firms and corporations extract insights from internal data repositories​.
  • Clio Announces $900M Investment at $3B Valuation
    Clio has secured a massive $900 million investment, valuing the company at $3 billion. This funding will be used to enhance its multi-product platform, particularly in AI and integrated legal payments, and accelerate global expansion. Clio aims to revolutionize the legal industry with generative AI and advanced analytics​.
  • Thompson Street Acquires National Arbitration & Mediation
    Thompson Street Capital Partners has acquired National Arbitration & Mediation (NAM), a leading provider of alternative dispute resolution services. This acquisition signifies the growing convergence between technology and legal services, expanding Thompson Street’s portfolio in legal tech investments​​.
  • USPTO Issues Patent Eligible Subject Matter Guidance for AI
    The United States Patent and Trademark Office (USPTO) has issued new guidance on the subject matter eligibility of AI inventions. The guidance includes a two-step process for evaluating AI-related claims and aims to reduce uncertainties surrounding patent protection for AI innovations​​.
  • AI Copyright Lawsuit Update: OpenAI Dropped from Case
    In a significant development, the open-source developers suing Microsoft and GitHub over the alleged use of open-source code in training AI coding assistants have dropped OpenAI from the lawsuit. The case now focuses on open-source licensing violations, highlighting complex legal issues surrounding AI development and raising concerns about the future of generative AI models and copyright law​.
  • European Commission Workshop on Competition in Generative AI
    The European Commission (EC) hosted a workshop addressing competition in generative AI. The workshop focused on market concentration, anticompetitive behavior, and the need for interoperability and diversity in open-source models. The EC emphasized the importance of international cooperation and balanced regulation to foster a competitive AI market​​.
  • LexisNexis Announces New Capabilities for Lexis+ AI
    LexisNexis has introduced new features for its Lexis+ AI legal technology solution, improving usability and accuracy. Enhancements include more control over the AI assistant’s behavior, comprehensive case coverage, and integration with Shepard’s Knowledge Graph and advanced Large Language Models for more authoritative AI-generated responses​​.
  • Global IT Outage Hits Law Firms
    A global IT outage caused by a CrowdStrike cybersecurity update disrupted various sectors, including law firms. Major law firms like Ashurst and Kirkland & Ellis experienced significant disruptions, highlighting the critical importance of IT availability and contingency planning in the legal industry​.
  • Generative AI Adoption Trends in Law
    New reports highlight trends in generative AI adoption within the legal profession. About 27% of legal professionals use GenAI tools, primarily for legal research, document review, and drafting. Despite concerns about accuracy and ethics, GenAI integration is steadily progressing, with many firms reporting increased efficiency and exploring alternative fee arrangements.
  • Harvey Raises $100M for AI Legal Copilot
    Harvey, an AI-powered legal tech company, has raised $100 million in Series C funding, valuing the company at $1.5 billion. The investment will support the expansion of Harvey’s AI-native systems, which assist lawyers in handling complex legal work efficiently while ensuring data security and privacy​.

It’s been a bit of a crazy week around here. Power is back on in (most of) Houston, and I’m headed to Chicago for the American Association of Law Libraries Annual Conference. Hopefully, the massive Internet outage that’s happening with CrowdStrike and Microsoft 365 won’t have me hanging out at the airport bar all day. Look for me on Tuesday as I introduce the newest members of the Marian Gould Gallagher Award. I have a snazzy new jacket to premiere at the event as well.

Here are some stories that caught my attention this week. Remember to check out the AI Lawyer Talking Tech daily podcast for stories like these and more. Let me know if there are other stories out there that caught yours!

Have a good weekend everyone. – GL

Swedish Legal Tech Startup Leya Secures $25 Million in Funding
Swedish legal tech startup Leya has secured $25 million in Series A funding to accelerate its product development and growth. Leya’s AI-driven platform integrates with law firm documents and sources to automate repetitive tasks and enhance legal professionals’ productivity. By assisting lawyers with tasks like reviewing, searching, and drafting, Leya aims to improve efficiency and outcomes, transforming the legal industry in Europe​​.

LegalFly Secures €15 Million in Series A Funding
LegalFly, a Belgium-based startup founded by ex-Tinder executives, has secured €15 million in Series A funding. The company offers an AI-powered platform that automates contract review and drafting, tailoring reviews to internal policies in various languages and jurisdictions. The platform is designed for law firms and in-house legal teams within the finance and insurance sectors, showcasing the growing impact of North European companies in the legal AI landscape​.

Dentons Partners with AI Startup Intanify for IP Discovery
Dentons has collaborated with Intanify, an AI fintech startup, to expedite and enhance the creation of IP inventories and evaluation of IP opportunities and risks. The collaboration involves Dentons referring clients to Intanify for a fee and piloting a white-label offering under its brand. Intanify’s AI platform enables accelerated IP audit and due diligence processes, making these processes more accessible to SMEs​.

AI21 Labs Develops Hybrid Model for Legal Industry Applications
Researchers at AI21 Labs are developing foundation models and AI systems for enterprise use, focusing on their latest model, Jamba-Instruct. This hybrid model combines Mamba and Transformer architectures to achieve both speed and accuracy. In the legal industry, AI21 Labs’ technology can be used for tasks such as term sheet generation and financial document Q&A, emphasizing the importance of safety and security considerations when deploying AI models​.

Thomson Reuters Launches CoCounsel Drafting Tool
Thomson Reuters has launched CoCounsel Drafting, an AI-based tool that simplifies and expedites contract drafting. CoCounsel Drafting integrates with Microsoft Word to streamline the entire process, allowing users to find optimal starting points, search for specific clause language, draft and modify clauses, and review contracts. This tool significantly reduces drafting time and increases productivity, revolutionizing the way legal documents are created​.

Rocket Matter Unveils Next Generation of Its Law Practice Management Platform
Rocket Matter has launched the latest version of its law practice management software, designed to provide increased flexibility and customization for law firms. The updated platform retains core features like timekeeping and accounting but introduces enhanced integrations with QuickBooks Online and improved security measures. This new version emphasizes user-specific workflows, dashboard views, and customizable reports, allowing firms to tailor the platform to their unique needs​.

OpenText Expands Generative AI Tools for Enterprise Content Management
OpenText’s latest quarterly release, Cloud Editions 24.3, expands the company’s generative AI tools for enterprise content management. The update includes support for various media types in its AI framework, leveraging technology from Micro Focus to capture metadata and analyze unstructured text, audio, video, and image content. This expansion highlights the potential impact of generative AI in the legal vertical, particularly in discovery, where AI can accelerate evidence retrieval and case strategy development​​.

European Union’s AI Act Published, Setting Compliance Deadlines
The European Union’s Artificial Intelligence Act has been published, establishing a comprehensive legal framework for regulating AI systems. Key obligations include ensuring AI literacy of staff by February 2025, compliance programs for high-risk AI systems by August 2026, and stricter requirements for existing AI models by August 2027. The Act imposes significant penalties for non-compliance, urging businesses to assess their AI systems and implement compliance measures​​.

Hélder Santos of Bird & Bird Discusses GenAI Partnership with Leya
Hélder Santos, Global Head of Legal Tech & Innovation at Bird & Bird, discusses the firm’s partnership with genAI-first startup Leya. The collaboration focuses on onboarding generative AI, extending lawyers’ abilities, and providing clients with enhanced value. Santos highlights the need for industry standards to ensure accuracy and transparency in genAI applications, advocating for a culture of innovation within law firms​)​.

 

This week, we are joined by ⁠Joshua Broyde⁠, PhD and Principal Solutions Architect at ⁠AI21 Labs⁠. Broyde discusses AI21 Labs’ work in developing foundation models and AI systems for enterprise use, with a focus on their latest model, ⁠Jamba-Instruct⁠.

Josh explains the concept of foundation models and how they differ from traditional AI models. He highlights AI21 Labs’ work with financial institutions on use cases like term sheet generation and financial document Q&A. The conversation explores the challenges and benefits of training models on company-specific data versus using retrieval augmented generation (RAG) techniques.

The interview delves into the development of Jamba Instruct, a hybrid model combining Mamba and Transformer architectures to achieve both speed and accuracy. Broyde discusses the model’s performance, industry reaction, and potential applications.

Safety and security considerations for AI models are addressed, with Broyde explaining AI21 Labs’ approach to implementing guardrails and secure deployment options for regulated industries. The discussion also covers the balance between model quality and cost, and the trend towards matching specific models to appropriate tasks.

Josh also shares his thoughts on future developments in the field, including the potential for agent-based approaches and increased focus on cost optimization in AI workflows.

Listen on mobile platforms:  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Apple Podcasts⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ |  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠⁠⁠⁠

Contact Us: 

Twitter: ⁠⁠⁠⁠⁠@gebauerm⁠⁠⁠⁠⁠, or ⁠⁠⁠⁠⁠@glambert⁠⁠⁠⁠⁠
Email: geekinreviewpodcast@gmail.com
Music: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jerry David DeCicca⁠⁠⁠⁠⁠⁠⁠⁠⁠

Transcript

Continue Reading Can AI Bring Both Speed and Accuracy: Josh Broyde of AI21 Labs (TGIR Ep. 261)

Starting in January of 2023, I started a project that compiles summaries for legal tech and innovation articles and creates a daily automated podcast. The AI Lawyer Talking Tech podcast has been a lot of fun, and gets a few hundred listens each week. That’s not too bad for something that I really created as my own personal professional development tool. I’ve been thinking over the past couple of weeks about what else I could be doing with the data that I’ve collected. One idea that I’m going to test out is to review some of the topic issues of the week and write about them here at 3 Geeks. The first thing I did was make the logo. After working with AI to create a picture, then telling it: “make me fatter”, “a little fatter”, “whoa, not that fat,” I then started thinking of what kind of stories should be highlighted in a weekly review. I’m going to start with some of the big merger/acquisitions or funding rounds with the legal technology vendors, or new feature releases. We’ll see how that goes, and then adjust as needed.

  • Legaltech Hub Acquires Legal Tech Consultants
    Legaltech Hub has acquired Legal Tech Consultants, aiming to broaden their service offerings and enhance their market presence. This strategic move allows Legaltech Hub to integrate a wealth of expertise and innovative solutions from Legal Tech Consultants, providing a comprehensive suite of services to their clients. The acquisition marks a significant step in consolidating resources and strengthening their position in the legal technology sector​.
  • Hebbia Confirms $130m Investment from Andreessen Horowitz and Google Ventures
    Hebbia, a fintech and legal tech startup, secured $130 million in Series B funding, led by Andreessen Horowitz and Google Ventures. Their flagship product, Matrix, enables users to compare and analyze complex documents simultaneously, leveraging multi-modal and multi-model capabilities. This investment underscores Hebbia’s significant growth and its potential to revolutionize document analysis for asset managers, law firms, and Fortune 100 companies​.
  • Wordsmith Raises $5 Million to Empower Lawyers with AI
    AI-powered legal assistant platform Wordsmith has raised $5 million to further develop its technology, which aims to enhance lawyers’ capabilities by automating routine tasks. This funding will help Wordsmith integrate with existing legal systems and adhere to stringent security standards, allowing lawyers to focus on high-value work. The platform promises to speed up legal processes significantly, highlighting the growing importance of AI in professional legal services​.
  • BRYTER Launches AI Agents with Major Brand Backing
    BRYTER has launched AI Agents, supported by major brands, aiming to enhance legal workflows with advanced AI capabilities. This new product offers innovative solutions for automating complex legal processes, reducing the time and effort required for various tasks. The launch demonstrates BRYTER’s commitment to advancing legal technology and providing cutting-edge tools to law firms and legal departments​.
  • Leya and FromCounsel Launch Knowledge Sharing Pilot with 12 Law Firms
    Leya and FromCounsel have partnered to launch a knowledge-sharing pilot program involving 12 law firms. This initiative focuses on leveraging generative AI to enhance legal knowledge management and collaboration. By integrating AI-driven tools, the program aims to streamline knowledge sharing and improve the efficiency and effectiveness of legal research and document drafting within participating firms​.
  • Introducing the Paxton AI Citator: Setting New Benchmarks in Legal Research
    Paxton AI has introduced “Citator,” a patent-pending tool that utilizes AI to check the status and significance of case law. Unlike traditional citators, this AI-powered system analyzes related cases and semantic similarities, achieving a 94% accuracy rate in Stanford Casehold Benchmark testing. This innovative tool aims to provide a more reliable and predictive research tool for legal professionals, marking a significant advancement in legal research technology​.
  • Litify Announces Responsible AI Development Approach with AWS and Anthropic
    Litify has announced its collaboration with AWS and Anthropic to develop a responsible AI approach for legal technology. This partnership focuses on integrating ethical AI practices into Litify’s platform, ensuring compliance with legal standards and enhancing the functionality of AI in legal operations. This initiative highlights the growing importance of responsible AI development in the legal tech industry​.
  • Midpage: The New GenAI Legal Research Startup
    Midpage has launched as a new generative AI legal research startup, aiming to revolutionize how legal research is conducted. By utilizing advanced AI algorithms, Midpage provides more efficient and accurate legal research capabilities. This startup is positioned to significantly impact the legal tech landscape by offering innovative solutions for legal professionals seeking to enhance their research processes​.
  • Spellbook Launches Contract ‘Benchmarks’ to Show What’s Market
    Spellbook has launched a new feature called “Contract Benchmarks,” which uses AI to provide market-standard comparisons for legal contracts. This tool helps legal professionals understand prevailing market terms and conditions, improving contract negotiation and drafting. Spellbook’s latest offering represents a significant advancement in contract management technology, leveraging AI to enhance legal practice​.
  • Osprey Approach Partners with UX Specialists Full Clarity
    Osprey Approach, a legal software provider, has partnered with UX specialists Full Clarity to enhance the user experience of their platform. This collaboration aims to make legal work more intuitive and user-friendly by incorporating client feedback and conducting UX research workshops. The partnership reflects Osprey Approach’s commitment to continuous improvement and innovation in legal software​.