(Jun 21) Microsoft announces Copilot pricing / Is AI bad for A2J?

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 the adoption of AI technologies in the legal industry, new regulations for AI services in China, Microsoft's Copilot pricing and its impact on firms, and the importance of robust information governance in law firms.

Let's dive in.

Here's what happened in legal tech recently.

Law firms and industry players are actively embracing and advancing AI technologies while also grappling with important considerations such as cost, regulation, and employment implications. Microsoft unveiled the pricing for its AI tool, Microsoft 365 Copilot, which we'll cover shortly.

Coming out of stealth, law firm Clyde & Co announced its partnership with Luminance to automate the review of casualty claims, augmenting their existing Microsoft-built decision engine. Furthermore, the Cyberspace Administration of China introduced new regulations, called the Interim Measures for the Management of Generative Artificial Intelligence Services, to supervise generative AI service providers in the country. China's new GenAI Measures could have broader implications for the global AI market, illustrating a trend toward stricter management of AI services worldwide.

As AI solidifies its position as a fundamental component of the industry, it is crucial for businesses to carefully assess the potential productivity gains against the associated costs, including those introduced by Copilot. Industries closely tied to AI, such as large language model development, must remain vigilant in monitoring legal and regulatory changes.

Let's consider some of these items now as part of our key stories.

Microsoft has recently announced the pricing for Copilot, a new AI solution aimed at enhancing productivity and streamlining operations. Priced at $30 per user, per month, Copilot has attracted attention due to its high costs, potentially doubling or even tripling the usage cost of Microsoft 365 for firms. Despite these concerns, the integration of large language models with core Microsoft 365 apps offers a new way of working that promises to improve efficiency.

While some professionals have expressed worries about the increased prices, particularly alongside the renewal of Microsoft 365 licenses, the potential benefits of Copilot cannot be overstated. The solution has the ability to enhance productivity by leveraging AI capabilities and optimizing workflow processes. However, there have been suggestions of the potential need for downsizing to account for the additional costs.

In addition to Copilot, Microsoft has also unveiled Bing Chat Enterprise, an AI-powered chat system designed for secure work communication. The inclusion of Bing Chat Enterprise at no extra cost aims to provide added value for users and address concerns surrounding the new business model. It is believed that this business model shift is driven by Microsoft's desire to recoup its substantial investment in OpenAI.

The pricing announcement for Copilot and the introduction of Bing Chat Enterprise mark significant developments in Microsoft's commitment to leveraging AI technologies for improved productivity and communication in the legal industry.

AI has long been touted as a solution to the access to justice problem, with its potential to break down barriers and improve the availability of legal services. However, a growing concern has arisen regarding the negative impact of AI on access to justice. While AI has undoubtedly been a powerful tool in accessing and interpreting vast amounts of legal data, it has also inadvertently created further barriers to justice.

One significant issue is the presence of paywalls restricting access to essential legal resources. As litigants, private publishers, and insurance companies utilize AI to navigate legal data, those without the financial means are left at a disadvantage. This exacerbates existing disparities between individuals who can afford access and those who cannot. Natalie Byrom from the Civil Justice Council has aptly highlighted the potential for AI to become an expensive gatekeeper, further entrenching inequalities and hindering access to legal information.

As the role of AI grows in facilitating access to justice, attention must be given to the issue of who can benefit from and use legal data. Failure to address this concern may deepen the existing inequality within an already challenging legal system. It is crucial to ensure that the promise of AI in democratizing legal services does not inadvertently create new barriers or widen the gap between those who can access justice and those who cannot.

The potential of AI to improve access to justice should not be disregarded. However, it is essential to be mindful of the unintended consequences and actively address the challenges it presents. By proactively working to make legal data more accessible and affordable, we can harness the true potential of AI in leveling the playing field and advancing access to justice for all.

The increasing volume of data and the rising risk of cybercrime have highlighted the importance of implementing robust information governance (IG) practices in law firms. It is crucial for lawyers to have easy and secure access to the right information, without wasting precious time. Furthermore, the adoption of cloud-based document management systems and content repositories has resulted in higher hosting costs, necessitating the minimization of storage expenses through active data retention and disposition management.

Efficient information systems and procedures are essential to ensure resilience against cyber attacks and to comply with the ever-growing regulatory landscape regarding data privacy. Consequently, many law firms have recognized these challenges and have begun to establish dedicated IG roles, such as Information Governance Directors. These individuals spearhead the implementation of a company-wide approach to information sharing, ownership, and management.

Effective IG serves as the foundation for client trust and competitive advantage, making it a vital aspect of modern law firms. By prioritizing information governance, firms can confidently navigate the complexities of data management and cybersecurity, fulfilling their responsibility of safeguarding client information while also maximizing operational efficiency.

And that's a wrap.

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