(Jul 26) AI Managed Services for Legal Emerge

Welcome to Law Tech Daily - the podcast that answers "what happened in legal tech this week?". Join us each Monday, Wednesday, and Friday as we dive into the exciting world of legal tech news. Don't forget to hit that subscribe button to stay up-to-date on the latest episodes! In today's episode, we'll cover funding news and updates from Eperoto, Clearlaw, LexisNexis, NetDocuments, and Everlaw - all unveiling AI products, and the launch of a Gen AI Management Services for legal professionals.

Let's dive in!

We have three key stories today, before that here's what happened in legal tech recently.

Elevate Services made a significant move by securing a $40 million loan. This funding will enable them to refinance debt and focus on expanding their operations. Eperoto, a tech innovator based in Sweden, showcased their capabilities in assisting lawyers in predicting case outcomes. This could be a game-changer for legal professionals looking to improve their decision-making processes.

The partnership between legal tech firms Streamline AI and Clearlaw promises to enhance contract review capabilities. This collaboration could result in more efficient processes and improved accuracy in contract analysis. In addition, AI safety and research firm Anthropic has initiated a search for a prompt engineer. This suggests that there is a growing demand for professionals with expertise in AI development and implementation within the legal sector - keep this in mind when we discuss our key stories.

Elsewhere, companies like LexisNexis, NetDocuments, and Everlaw have introduced notable AI-powered products and enhancements. NetDocuments released PatternBuilder MAX, the first AI-powered product in their ndMAX series, which aims to optimize drafting capabilities for law firms. Everlaw also added three AI features to their platform, focusing on document summary and case preparation. These advancements highlight the trend of AI encroaching upon various aspects of the legal profession.

One significant trend observed is the potential challenges that AI regulations may present for corporate legal teams, particularly those operating within the European Union. The introduction of AI regulations emphasizes the importance of responsible and ethical AI usage, as well as the need for robust governance measures. Companies will have to ensure that their AI technologies comply with these regulations and prioritize accountability.

The legal tech landscape is undergoing a seismic shift, with firms increasingly investing in AI to streamline their services. This shift is driven by the rising demand for data visibility, more efficient processes, and simplified legal language. A report by the World Commerce & Contracting and Deloitte highlighted the importance of these factors, particularly in contract management.

The exciting partnerships and new roles emerging within the AI domain signify the rapid evolution of the legal tech sector. However, companies must remain cautious when employing AI technologies, ensuring they are used responsibly and ethically. The impending stricter AI regulations underscore the importance of compliance and responsible AI practices.

Let's dig into our key stories to explore further.

Axiom's second annual report reveals that the UK’s legal sector is trailing behind in the adoption of data, technology, and innovative service delivery models. The findings indicate that approximately 90% of in-house counsel and 75% of private practice lawyers believe that the legal sector has been slow to embrace these areas, representing an increase from 64% the previous year. Additionally, the survey highlights that 96% of in-house counsels and 78% of private practice lawyers perceive a growing gap between client expectations and what law firms actually deliver.

Interestingly, despite this ongoing concern, a significant majority of surveyed lawyers, approximately 92%, expressed satisfaction with their current positions. This satisfaction is largely attributed to the positive relationships they have cultivated with their clients. However, the report also underscores that economic instability has sparked anxiety among legal professionals, as they fear potential cuts and freezes within their departments and firms.

It is noteworthy that despite these worries, the majority of lawyers are not actively looking for new roles at the moment. This contrasts with the previous year's survey, which indicated that half of the lawyers were exploring new opportunities. The shift in attitude perhaps reflects a sense of cautious optimism amidst the challenging economic climate.

As technology continues to revolutionize various industries, including the legal sector, it is imperative for law firms to bridge the gap between client expectations and the services they provide. The survey results highlight the need for the legal profession to catch up with advancements in data, technology, and innovative service delivery models. By doing so, law firms can meet the evolving needs of their clients and ensure continued client satisfaction.

To thrive in today's competitive landscape, law firms should adapt and embrace these changes. Investing in technology and exploring new ways of delivering legal services would not only address the concerns raised by survey participants but also position law firms as forward-thinking and customer-centric. This, in turn, would help strengthen client relationships and foster further satisfaction among legal professionals.

BigHand, a global leader in technology solutions for law professionals, has recently conducted extensive research on the state of the legal industry. With participation from over 800 law firm leaders, the study sheds light on a rather somber outlook for the sector. In the past year, around 75% of the participants observed a decline in demand for legal services, and an equal proportion anticipate this downward trend to persist over the next 12 months.

In response to these challenges, law firms have been implementing various strategies. As noted in the report, 61% of the firms have decided to lower their prices in an effort to attract and retain clients. Additionally, 29% of the firms are prioritizing the strengthening of client relationships, recognizing that fostering long-term partnerships can help mitigate the effects of declining demand.

One key finding emphasized in BigHand's research is the growing cost-consciousness among clients. A staggering 87% of law firms acknowledged this rising trend, indicating that clients are becoming increasingly cautious about their legal expenditures. In such an environment, law firms must consider offering cost-effective solutions while maintaining the quality of their services. This demands a delicate balance between efficiency and affordability, a challenge that the industry must address to remain competitive in an uncertain market.

UpLevel Ops, the esteemed legal operations consulting firm, announced the launch of its groundbreaking Generative Artificial Intelligence (Gen AI) Management Services exclusively designed for legal professionals. Recognizing the tremendous potential of Gen AI in the legal sector, UpLevel Ops is committed to empowering legal experts with cutting-edge tools and strategies that offer a distinct competitive advantage.

The implementation of Gen AI has become increasingly vital for businesses across various industries, and UpLevel Ops aims to facilitate its integration within the legal profession to achieve long-term success. By offering a range of comprehensive services, UpLevel Ops seeks to transform the way legal operations are carried out, revolutionizing the industry as a whole.

The core offerings of UpLevel Ops' Gen AI Management Services encompass policy and procedure development, focusing on ensuring the safe and responsible usage of AI. In a rapidly evolving technological landscape, it is imperative to establish robust frameworks that enable legal professionals to leverage AI effectively while safeguarding ethical considerations. UpLevel Ops' expertise in this domain allows law firms and legal departments to implement AI technologies confidently and responsibly.

Recognizing the essential need for education in this digital era, UpLevel Ops will conduct educational sessions emphasizing the impact of AI on the legal landscape. By shedding light on the potential benefits and challenges associated with AI, these informative sessions aim to equip legal professionals with the knowledge and insights necessary for informed decision-making.

In addition, UpLevel Ops is committed to assisting legal experts in setting up sustainable AI programs. Through careful guidance and strategic advice, UpLevel Ops will empower organizations to develop long-lasting and effective AI initiatives that drive operational efficiency and enhance overall performance. By aligning AI programs with business objectives, UpLevel Ops enables legal professionals to unlock the full potential of AI technologies.

The introduction of Gen AI Management Services by UpLevel Ops signifies a significant leap forward in the legal industry. With its innovative approach, UpLevel Ops is dedicated to supporting legal professionals in their pursuit of excellence by harnessing the power of AI. By embracing Gen AI, legal experts can stay ahead of the curve, transform their operations, and unlock new opportunities for success.

And that's a wrap.

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