Latest Shake-Up in Legal Tech: AI on the Rise & Notable Talent Shifts
AI’s increasing role in legal tech dominated yesterday’s developments. From Allen & Overy adopting Athena to capture unbilled work, Linklaters testing GenAI for streamlining tasks, to vLex and Fastcase beta-testing Vincent AI, these trends underline the growing reliance on AI in the legal industry. A strategic and validated approach to AI’s application is suggested, with the measure of AI’s effectiveness via gamification, process mining software, and managing expectations due to its probabilistic nature. The focus on building sophisticated legal tech teams was another trend seen in robust talent acquisitions by Atticus and Harbor’s takeover of Stout’s legal consulting business.
AI adoption is no longer optional for law firms aiming for a competitive advantage. The Athena and GenAI use highlight how AI can address complex issues like cross-jurisdictional billing and labor-intensive tasks like due diligence respectively. However, AI’s implementation should be judicious, with careful monitoring of its effectiveness. The incoming talent in legal tech also underlines the sector’s growth trajectory in mainstream corporate strategy. However, privacy concerns are rising, with companies replacing cookies with alternative tracking technologies that may expose them to legal risks. As AI and data privacy become increasingly intertwined, law firms can expect a surge in tech-related legal issues in the near future. Overall, the developments indicate a promising road ahead for AI in legal tech while underscoring the importance of strategic talent acquisition and the constant need for data privacy vigilance.