Featuring

Nicola Shaver, Legal Tech Hub

The headlines never seem to stop when it comes to AI and legal. This firm invested in that system. That firm is testing this platform. But what’s really going on inside the four walls of law firms when it comes to AI?

Evolution of Legal Tech and AI Adoption
The discussion revolved around the evolution of the legal tech industry, with a focus on the emergence and use of advanced AI solutions within the legal sector. Nicola Shaver teased LegalTech Hub’s recent survey on how law firms are utilizing generative AI.

US vs UK AI Adoption in Law Firms
Nicola and Cheryl discussed the differences in attitudes and approaches towards generative AI between US and UK law firms based on their recent survey. The US firms showed high commitment (8 on a scale of 10) to AI initiatives. UK firms were more skeptical, indicating a level closer to 6. They identified the availability of Casetext’s CoCounsel product and structured legal content as key factors in the US’s quick adoption of AI technology. Nicola suggested that this, combined with a generally more optimistic and enthusiastic attitude towards new technology in the US, may have contributed to the US pulling ahead in this area.

Generative AI and Large Language Models Adoption
Nicola discussed the adoption of generative AI and large language models by firms, noting that 66% of US firms have piloted a generative AI tool and 40% have licensed it. They also mentioned that over half of US firms have moved forward with a proprietary chatbot. Nicola and Cheryl touched on the ‘build vs buy’ debate, with Nicola suggesting that most firms opt to use third-party technology for addressing specific problems, rather than building their own solutions. They discussed an unusual case of a law firm attempting to build their own internal large language model, which Nicola considered a bold and resource-intensive decision. Nicola emphasized that unless there is a competitive advantage, it is generally more practical to utilize existing technology.

AI Technology Development and Implementation
Nicola and Cheryl discussed the development and implementation of AI technology, with a focus on Chat GPT. Nicola explained the importance of fine-tuning the model using internal data for safer and more reliable responses and highlighted the popularity of Azure and Legau for hosting the technology. They agreed that combining internal knowledge with these tools, and focusing on retrieval augmented generation capabilities, is key to effective use. They also discussed the evolving adoption cycles and the effectiveness of reinforcing the model with internal data.

Technology in Legal Research and Data Management
The participants discussed the use of technology in legal research and its potential applications. They highlighted the importance of data normalization and summarization as key areas of focus. They also discussed the use of technology for operational use cases such as billing data and time entry normalization, with Nicola emphasizing that data stewardship and management is more important now than ever.

Prompt Engineering: Key to Optimizing AI Outputs
Nicola and Cheryl discussed the importance of prompt engineering in optimizing AI outputs. They noted that while much of the process will be integrated into the backend, lawyers and technologists will need to understand how it works to ensure effective prompt creation. Nicola shared that she teaches about prompt engineering in her course on legal technology and recommended that lawyers gain some understanding of the process. The discussion also touched on the pricing of AI enhancements, with Nicola suggesting that consumers should evaluate the added value before paying more for AI-enhanced products.

Reassessing Tech Stacks: Focusing on User Experience and AI in Legal Tech
Nicola and Cheryl discussed the rapid changes in the legal tech ecosystem, highlighting the need for law firms to reassess their tech stack, focusing on whether it will remain relevant in the coming years. The conversation touched on the role of generative AI and its potential to revolutionize certain areas of law. They cautioned that firms which failed to experiment with this technology in 2023 would struggle to scale up in 2024. They also suggested that professionals in legal technology innovation should focus on understanding how AI works and how it can be combined with other technology to create more effective solutions.

Law Firm Efficiency and Adaptation Discussed
Cheryl and Nicola discussed the importance of efficiency in law firms and the need to adapt to new technologies. They noted that 50% of survey respondents had already initiated discussions with their management about valuing legal work in the future. They also highlighted that some firms may not survive if they do not embrace change, predicting potential shifts in the industry within the next two to five years.