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How $55 Billion in Legal Fees & Costs Is Driving This Big Law Firm to Develop AI

How $55 Billion in Legal Fees & Costs Is Driving This Big Law Firm to Develop AI 2

The soon-to-be law California Consumer Privacy Act (CCPA) is set to take effect on January 1 and is estimated to cost companies around $55 billion in legal fees and compliance costs.

The legislation requires companies with revenues of over $25 million to account for personal information filed about Californians and to delete it upon request.

But what if the legal work can be achieved with fewer lawyers?

Wilson Sonsini Goodrich & Rosati have come to the party with an attempt to provide top quality legal minds combined with AI to reduce the legal fees exposure of the firms needing to comply with the CCPA.

Bloomberg Business report on the small firm SixFifty run by Kimball Parker out of Lehi, Utah. SixFifgty is a subsidiary of Wilson Sonsini, aims to deliver the quality of Wilson Sonsini’s top legal minds via software.

His team has taken an early lead in the nascent market for legal automation by focusing on the data-privacy law, which is an issue at the center of its parent’s interest in Silicon Valley.

Bloomberg report that the California compliance software went on sale in July and Parker says he expects it to bring in $4 million by the end of 2019.

That’s roughly the revenue that four of Wilson Sonsini’s 770 lawyers generated for the firm last year.

The SixFifty budget runs at about $2 million for 2019 and the company plans to release similar software next year that can help clients comply with a broader range of data security standards.

“Those tools are really just a delivery device for the human expertise,” Parker says, adding that it’s easy to imagine them applying to the Foreign Corrupt Practices Act, for example. “We will just deploy those tools over and over again until, I don’t know, until the cows come home.”

It’s a vision in legaltech that a growing number of startups and other enterprises are focusing upon with increasing intensity.

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