12 Insights on Artificial Intelligence in the Legaltech Sphere

Having navigated the realms of legal tech and artificial intelligence for some time, I frequently encounter requests for future forecasts. My approach leans towards skepticism about the value of such predictions, possibly because I recognize that positivity often fades into oblivion, while negativity lingers in memory.

In this context, I offer twelve reflections on the evolution and impact of generative AI within the legal sector. Though some may interpret these as veiled predictions, my intention is to provide insights rather than prophecies.

1.???? Temporal Perspectives on Impact: AI's influence is often overestimated in the short term and underestimated in the long term. This dichotomy highlights a misunderstanding of AI's evolutionary path. Law firms and legal departments should balance their short-term goals with long-term visions—they are two sides of the same coin.

2.???? The Need for Structure: The allure of AI can divert attention from essential foundations. Some goals we aim to achieve with AI could be met more efficiently through other means. Therefore, its deployment should be strategic and not just for the sake of using AI.

3.???? The Underestimated Territorial Factor: The significance of geographical context in legal tech implementation is greatly underestimated. Operating in Italy, Germany, England, India, or Singapore entails different strategies, resources, rules, and pricing structures—factors seldom discussed in the legal tech community. I will likely write a more detailed post on this topic, as I believe it deserves greater consideration from both providers and users.

4.???? (Good) Data as a Prerequisite: Data is often heralded as the new oil, a resource of immense value in today's digital economy. Yet, this comparison holds true only when the data in question is of impeccable quality. Subpar data inevitably results in suboptimal outcomes, diluting the potential benefits of data-driven decision-making. The exception to this rule arises when the explicit aim is to leverage artificial intelligence (AI) to pinpoint and address inefficiencies within systems. However, I've seen very few law firms and legal departments using AI to enhance their internal awareness.

5.???? Breaking the Silo Mentality: In the rapidly evolving landscape of legal technology, AI often falls prey to a siloed perspective, where its application is seen through a narrow, limited lens. However, visionaries and forward-thinkers in the field recognize AI's transformative potential across the entire spectrum of legal domains. These pioneers understand that the integration of AI into legal practices isn't just about automating tasks or enhancing efficiencies; it's about fundamentally reimagining how legal services are delivered, how justice is administered, and how legal professionals interact with technology on a daily basis.

6.???? The Uncertainty of Predictions: Any claims of absolute certainty about the future - especially in the legal field - are illusory, given the variability of the political, economic, and regulatory landscapes. Even for consultants, the legal environment in 5 to 10 years is a mystery.

7.???? Embracing the Unknown Unknowns: Donald Rumsfeld famously stated there are things that we know, things that we don't know, and things we don't know that we don't know. The advent of blockchain didn't initially bring smart contracts and NFTs to mind, just as the Internet's emergence didn't immediately herald the development of apps and cloud computing. Similarly, AI is likely to unveil unforeseen advancements.

8.???? The Role of Experts: Despite slow adoption rates, experts are emerging as key players in a revolution driven by clients and startups. However, law firms and legal departments do not always rely on their expertise, whether it be for internal policies, risk assessments, or software implementation. It seems that their value is directly proportional to their perceived utility by clients.

9.???? Regulatory Influence: Regulatory actions, including bans and legal requirements, will significantly influence AI's integration into legal practices. The past has shown us the impact of regulatory decisions, from French bans on analytics for judge rulings, to Courts requiring affidavits regarding the use of gen AI systems. And yes, we have seen also Chat GPT bans (who remembers what happened in Italy in 2022?).

10.? The Importance of Flexibility: In an era marked by swift and relentless change, we should reflect on the essence of adaptability . Our conventional view of strength, often visualized through the lens of brute force and rigidity, overlooks the profound power inherent in flexibility. The enduring image of bamboo bending gracefully under the weight of a snowstorm, in stark contrast to the downfall of a mighty, aged tree, embodies a timeless lesson from Daoism on the art of survival. This metaphor eloquently illustrates the necessity of embracing adaptability in the face of technological upheaval. As we navigate through the currents of innovation and disruption, the ability to adapt — to bend without breaking — becomes not just a strategy for resilience, but a cornerstone of thriving in a landscape transformed by the rapid pace of technological advancements.

11.? Exponential Thinking: Our linear mindset is ill-equipped to keep pace with exponential growth and innovation. The focus should not just be on current functionalities, like those of ChatGPT or Gemini, but also on their potential evolution. The rapid development seen with tools like Midjourney within just a year should prompt us to reconsider our projections.

12.? Investment Dynamics: Large consultancies, major law firms, and corporations enjoy the initial benefits of significant investment, sophisticated process management, and established structures. However, agility remains an indispensable asset. What are considered their strongest attributes may also emerge as their most critical weaknesses.

The Dawn of a New Era: We stand at the threshold of an unprecedented opportunity, particularly for students, trainees, and emerging legal professionals. By adopting the right mindset and strategies towards AI, we can unlock vast potentials that lie ahead. The essential challenge before us is not just recognizing this transformative moment, but actively engaging with it to shape a future that leverages technology for greater justice and efficiency. The time to act is now; will we rise to the occasion?