(Aug 4) More money, more AI

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In today's episode, we'll cover LawCatch's funding for legal editing software, OpenAI appointing an Amazon lawyer, LexisNexis partnering with Microsoft, and Consilio's acquisition of LOD and SYKE to expand legal services and reach.

Leading legal software developer, LawCatch, has recently secured $3.5 million in a seed funding round for its BriefCatch legal editing software. The funding will be used to expand LawCatch's team and launch new products, solidifying its position in the legal tech market. Meanwhile, OpenAI, a prominent player in the AI field, has appointed Che Chang, Amazon's in-house lawyer, as its new general counsel. This move comes in the wake of increased regulatory scrutiny over OpenAI's data practices.

Another significant development in the legal tech sector is the expanded partnership between LexisNexis and Microsoft. This partnership highlights the potential for AI to automate a significant portion of legal tasks, estimated to be around 20%.

The acquisition of Lawyers On Demand (LOD) and legal tech consultancy SYKE by Consilio marks an expansion of its legal services globally. Both stories we'll cover in more details shortly.

But before that... legal tech is witnessing a shift towards cloud-based platforms, as observed with Worldox's clients transitioning to NetDocuments' cloud-based platform. Additionally, the seed funding acquired by LawCatch reflects the financial world's growing interest in legal tech.

While legal tech continues to advance, firms must remain up-to-date and address industry-wide challenges, particularly concerning cybersecurity threats. The recent cybersecurity rules established by the US SEC may encourage firms to strengthen their defensive strategies. The recent restructuring of OpenAI's legal team serves as a reminder that even pioneering AI companies should prioritize regulatory diligence to avoid legal issues. Overall, these developments in the legal tech landscape offer promising advancements and make it an exciting time for professionals in the field.

Let's now review our key stories.

Consilio, a well-known eDiscovery vendor, is taking significant steps to enhance its enterprise legal services by acquiring Lawyers On Demand (LOD) and SYKE, a legal technology consultancy. This acquisition will also provide Consilio with an opportunity to expand its presence in various regions including Europe, Middle East, Africa, Asia, and Australia. LOD, established in 2007, has successfully built a strong network of over 4,500 legal practitioners across 25 countries, catering to prestigious clients. With this acquisition, Consilio aims to not only broaden its range of services but also address the talent challenges faced by legal teams, such as high attrition rates and budget limitations. This strategic alignment of offerings is predicted to solidify Consilio's position as a leader in legal consulting, making it one of the largest legal flexible talent and advisory entities in the industry. As part of this transaction, Bowmark Capital will conclude its five-year investment in LOD and SYKE.

LexisNexis announced its upcoming integration with Microsoft three sixty five Copilot/Generative AI solutions. This integration will provide legal professionals with enhanced workflow experiences when using Microsoft Outlook, Word, and Teams.

As part of their commitment to leveraging AI technology, LexisNexis has incorporated generative AI into Microsoft products. These technology advancements will be made available to Lexis customers through Lexis+, leveraging the capabilities of the Microsoft Azure Open AI Service.

The integration with Microsoft three sixty five will offer users seamless access to LexisNexis’ suite of solutions, including Lexis+, Lexis Connect, Lexis Create, and Lexis Create Plugin. Commercial availability of Lexis Create and Lexis Connect will begin in Q3, with the inclusion of generative AI capabilities by Q4.

By integrating with Microsoft 365, LexisNexis aims to streamline legal professionals’ workflows and provide them with more efficient and productive experiences. This serves as a good example of legal tech companies leveraging cutting-edge AI technology to enhance productivity for their customers.

And that's a wrap.

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