| IANAL, obviously! One question I have about legal AI startups/products, is how do they maintain or improve upon billing practices of law firms? Having worked with a bunch of lawyers, I know that I'm often paying $500/hr to that firm. That work is actually done by a paralegal who is being paid $40/hr, and then I'm being billed through the partner for an extra $460/hr. This is a gross oversimplification, but you get the point. If the partner needs to bring in $5M a year, how does any addition of tech solve that? If I'm the customer of the law firm, I would love to have a more cost efficient way to get legal advice. But, I don't understand how those incentives are matched by the partner? I don't really think they want a more efficient result for their customers, they want a better way to get more billable hours. Adding "tech efficiency solutions" does not solve that issue at all. Inevitably, customers will use LLMs on their own, and as people have noted, lose attorney client privilege (and often get hallucinated bad advice). There will probably be some very comical court room dramas when people try to represent themselves with an LLM on their shoulder. Am I misunderstanding something fundamental about the legal world that will make a major law firm adopt this tech? I feel like there are some strong reasons they will universally avoid moving in this direction. Long term it will win and there will be blood on the floor, but why would any large firm adopt this stuff right now? |
Also, an interesting example: in English litigation (where, broadly, loser pays unlike America where each side pays), maximising billable hours is not always a viable strategy for anybody if those costs aren't recoverable on success. Someone involved in large-scale commercial litigation involving disclosure of millions of documents who doesn't use algorithmic document classification (now pretty broadly accepted as normal) potentially runs the risk of a judge determining that the costs of going through all the documents by hand isn't recoverable. Insurers/litigation funders aren't going to want to risk padding the costs so much that the judge prevents them from recovering their stake in the litigation.
Customers using their own LLMs: yep, they might do that. I think the pitch from the legal LLM providers is "we've got legally trained people doing RLHF to make it more accurate" mixed in with "also we've got a partnership with Lexis/Westlaw/etc. so we can do legal research that's better than what's on the open web", with a little bit of "if you get sued for professional negligence, 'I used the legal AI thing that's built into Westlaw' is gonna be more convincing to a judge and jury (and your insurance company) than 'I used ChatGPT, yes, like the app you've got on your phone'...".