Jun 9th: Data-driven solutions take center stage in legal tech expansion

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In today's episode, we'll cover the increasing adoption of AI in the legal industry, the low usage of generative AI by law students, and the Technology GC in Residence program launched by Mayer Brown.

Before we dig into our key stories, here's what happened in legal tech recently.

First off, London-based AI business development platform, Kula, secure funding from investors. This is great news for Kula, as it means they can continue to provide innovative solutions that meet the needs of their clients. Secondly, Onna made history by becoming the first external eDiscovery product to be made available on Google Cloud Marketplace.

But, perhaps the most prominent trend that emerged yesterday was the growing use of artificial intelligence (AI) and its impact on the legal industry. It seems that more and more lawyers are incorporating generative AI into their work processes. That said, there is a significant gap in the adoption of AI between practicing lawyers and students. This suggests that while AI technology is being embraced by the legal industry, it may take longer for it to become part of the formal curriculum.

It's worth asking ourselves whether this is what the world was like when Wikipedia was looked down upon as a reference in educational settings? Either way, ethical considerations around the use of AI are also in focus, especially in light of the investigation of two New York lawyers who submitted fake AI-generated legal opinions to a court.

When we look at the expansion of Nextpoint Law Group, which we covered last week, and Kula's successful funding round from this week, we can see that there's a continued growth of data-driven solutions in the legal tech space. And with the need for remote working solutions, the use of cloud-based providers is also highly desirable, as highlighted by Onna's announcement of integration with Google Cloud.

Let's now move on to our key stories.

According to a recent survey conducted by LexisNexis, only 9% of law students are using generative AI in their studies. This is a stark contrast to the increasing number of lawyers who are using ChatGPT and other large language models. With this new trend emerging in the legal field, there's a need to look into why the adoption of this technology is not as prevalent among law students. Serena Wellen, a senior director of product management for LexisNexis North America, takes a closer look at the reasons behind this trend in her article titled "Learning the Law with AI: Why Law School Students Are Tentative about Using ChatGPT."

While it's a bit surprising to find out that only a small percentage of law students are currently using generative AI, it's even more concerning to see that only a quarter of them are considering it for their future work. This trend could have an impact on their preparedness for future jobs, and it's crucial to understand the underlying concerns of students and address them accordingly.

Wellen dives deeper into some of the concerns law students have about using generative AI. Some of them include the fear of reduced accuracy and authenticity in their work, a lack of understanding of how AI works, and the possibility of it being replaced by humans for legal work. It's important to note that these concerns are not unfounded, and that they need to be addressed to make generative AI an effective tool in the legal profession.

Ultimately, it's clear that there's a strong need to identify and address the concerns of law students when it comes to using generative AI. By doing so, we can ensure that the future lawyers and technologists of tomorrow are prepared to meet the demands of a rapidly changing industry.

Moving from education to practice, have you heard about Mayer Brown's new Technology General Counsel in Residence program? It's an initiative that they've established in order to gain insider understanding of business issues facing early-stage and venture capital companies. Beth Stevens, a veteran general counsel of several high-growth technology companies, was the first participant in the program from January to April this year. She worked with Mayer Brown lawyers on various projects, helping them to understand better how to collaborate with in-house counsel.

The program follows the lead of venture capital firms in setting up entrepreneur-in-residence positions, and legal industry experts describe it as a helpful pause for in-house lawyers who are considering their career options. Mayer Brown is now seeking other general counsel to participate in the initiative, so it's an exciting opportunity for those looking to gain experience and provide insight into the industry.

It's interesting to see the legal industry embracing new initiatives like this to stay ahead of the curve and better serve their clients. By having these types of programs, law firms can benefit from a deeper understanding of their clients' businesses and their issues. Overall, it's a great step forward for the industry, and we look forward to seeing more initiatives like this in the future.

Last up, let's discuss the practical use of ChatGPT for professionals? While it can write briefs and legal documents in just a matter of minutes. Recent events have led to concerns about the potential misuse of AI by legal practitioners. A lawyer in federal court submitted a brief containing non-existent cases, ultimately revealing the limitation of AI in generating accurate citations. It seems like the lawyer underestimated the reliability of the AI tool.

Don't get us wrong. AI can supplement and enhance the efficiency of legal professionals' research and writing processes. But it should not replace the expertise that comes with years of education, skills, and experience. After all, clients hire attorneys for a reason - to benefit from the services of a human professional.

As AI-powered tools become more common in legal practice, it's essential for lawyers to be aware of their limitations and use them with care without solely relying on them. AI can make internship-like contributions, help handle tedious or menial tasks, and take care of simpler assignments. Using tools like ChatGPT as a sidekick, with humans in the loop. Think of AI as a complement to lawyers, not a replacement.

And that's a wrap.

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