BigLaw Firms Developing AI Tools
Ben Borman* Allen & Overy and other biglaw firms are using AI LegalTech Tools and related law technology tools to push a technological revolution in the legal profession that will transform how legal services are prepared and delivered.
The Magic Circle firm is using an AI-driven contract drafting tool, ContractMatrix. that was developed in collaboration with Microsoft and legal AI startup Harvey, which uses existing contract templates to create new agreements, potentially saving up to seven hours in contract negotiations.
The tool has garnered significant attention, with over 1,000 Allen & Overy lawyers already using it and five major clients from diverse sectors like banking and technology on board.
The Financial Times reports that ASML and Philips recently used the service to negotiate what they termed as the “world’s first 100 percent AI-generated contract.”
ContractMatrix symbolizes the broader trend of generative AI’s growing influence in the legal sector.
As the legal industry continues to evolve, tools like ContractMatrix are set to increase efficiency and productivity, offering clients faster, cost-effective, and superior legal services.
But the downside of the AI tools is that there are concerns about job security for junior – and potentially senior – legal staff.
David Wakeling, head of Allen & Overy’s markets innovation group, views ContractMatrix as a proactive step to disrupt the market and the firm plans to extend the service to new clients acquired from its impending $3.5bn merger with US-based Shearman & Sterling.
The legal world is quickly adopting generative AI technology, evidenced by the success of tools like OpenAI’s ChatGPT and Google’s Bard.
Law Firms Jumping On The AI Bandwagon
Law firms like Addleshaw Goddard and Travers Smith are conducting internal generative AI pilots, indicating a significant shift in legal practice methodologies.
Among the law firms are also making significant strides in integrating artificial intelligence are Linklaters which has developed Nakhoda, an AI tool that aids in the automation of legal document creation and analysis.
Nakhoda represents a significant investment in technology aimed at streamlining complex legal processes.
Similarly, Baker McKenzie has been active adapting AI technology in a key move towards integrating digital capabilities into client offerings, introducing Reinvent, a platform designed to bring together legal tech solutions, including AI, to transform how legal services are delivered.
Clifford Chance has also stepped into the AI arena with their digital solutions hub, Clifford Chance Applied Solutions, whichincludes tools like CC Dr@ft, which automates the drafting of complex legal documents, and Cross-Border Publisher, helping clients navigate the complexities of international legal requirements.
DLA Piper is not being left behind in the AI arena with a tool that , another global law firm, has been experimenting with AI through its various initiatives. They have developed a tool that uses AI to predict legal outcomes, which aids in strategic planning and decision-making for their clients.
These advancements by Allen & Overy and their peers represent a broader trend within the legal industry towards embracing digital transformation. By leveraging AI, these firms are not only enhancing their service offerings but also setting a new standard for innovation in legal practice. As AI technology continues to evolve, it is clear that the legal sector is poised to undergo significant changes in how legal services are conceptualized and delivered.
The Data Privacy Concerns
Despite the promise, there are concerns regarding data privacy, client confidentiality, and AI-generated inaccuracies, known as “hallucinations.”
Allen & Overy, for instance, acknowledge these challenges but assures that ContractMatrix reduces such risks through its reliance on pre-trained templates and encrypted data processes.
But privacy and other concerns continue to create issues of ethics and privacy with organizations like the American Bar Association setting up a task force to look into the vexed and various issues arising from artificial intelligence tools and legaltech developments.
Author – Ben Borman writes on law firm technology trends and other matters with his most recent article for LawFuel being on Law Technology Trends and the Law Firm Equalizer. He can be contacted at news@lawfuel.com.
