Drafting the Future: A New Era of Contract Drafting

Welcome back to the latest edition of the Nico Legal newsletter! This week we're looking at an exciting new development from the nordic region. Welcome back to the latest edition of the Nico Legal newsletter! This week we're looking at an exciting new development from the nordic region.

It's an age-old plea from clients across the board—speedier outcomes and greater efficiencies. Yet, despite these ongoing requests, some law firms seem to be stuck in their ways, clinging to traditional methods that are becoming increasingly cumbersome and outdated.

But here's the twist: clients aren't just sitting back and waiting for law firms to catch up; they're taking matters into their own hands. And we're not talking about your everyday lay clients. We're looking at in-house legal teams that are pioneering the use of cutting-edge tools like ChatGPT for drafting contracts.

ChatGPT to the Rescue: A New Drafting Dynamo

Imagine cutting down contract drafting from a tedious hour to a mere ten minutes. Sounds like a dream? Not at Klarna! This week, this Swedish fintech giant revealed that a whopping 90% of its legal team is now embracing ChatGPT Enterprise to whip up first drafts of common types of contracts in a flash.

And boy, did the results deliver! The adoption slashed the time needed to draft contracts by a landslide with 86% of counsel now actively using genAI models in their daily grind.

Selma Bogren, a senior managin legal counsel at Klarna, put it this way: “The big law firms have had a really great business just from providing templates for common types of contract. But ChatGPT is even better than a template because you can create something quite bespoke.” She elaborates, “Instead of spending an hour starting a contract from scratch or working from a template, I can tweak a ChatGPT draft in about 10 minutes. You still need to adapt it to make it work for your particular case but instead of an hour you can draft a contract in ten minutes."

From Templates to Tailored Solutions: The AI Edge

Klarna, which operate a buy-now-pay-later payment option for online shoppers isn’t just stopping at contract drafting. They’ve also introduced Kiki, their own OpenAI-driven model, which has been answering around 2,000 internal questions daily. From distributing legal know-how to tackling intricate queries, Kiki is the next step forward combing both legaltech and genAI.

Sebastian Siemiakowski, Klarna’s CEO, isn't shy about their AI endeavors: “We push everyone to test, test, test and explore,” adding on “As Klarna continues to discover applications for OpenAI’s tech, there’s the potential to take the business to new heights. We’re aimed at achieving a new level of employee empowerment, enhancing both our team’s performance and the customer experience."

A Balancing Act: AI’s Impact on Legal Staffing

Yet, with great power comes great responsibility—and a bit of controversy. While Klarna has seen a significant reduction in its workforce, dropping by over 22% this past year, they assure that AI's integration is about efficiency, not cutting costs on external counsel or reducing team sizes.

The legal industry is watching closely, with mixed reactions. While some firms, like PwC, cautiously embrace AI for experimentation, others like KPMG have kept it at arm’s length in official projects. And then there are those cautionary tales, like the Canadian lawyer penalized for submitting AI-generated, fictitious cases in court.

Looking Forward: AI and the Future of Legal Practice

As we look to the horizon, one thing is clear—AI in legal tech is here to stay. It’s about finding the right balance, leveraging AI for efficiency while navigating the ethical and practical challenges it presents.

So, whether you're an AI skeptic or a tech enthusiast, the evolution of legal practice management with AI tools like ChatGPT is something to keep an eye on. After all, who doesn’t want to make their legal practice a bit smoother and a whole lot more exciting? Cheers to innovation and efficiency in the legal world!

Thank you for being a part of Nico Legal's Newsletter! Stay tuned for more exciting updates as we delve deeper into the transformative power of digital solutions in the legal industry. More valuable resources are coming your way in future editions. Let's embrace the digital revolution together and unlock new possibilities in law. Stay tuned!

It's an age-old plea from clients across the board—speedier outcomes and greater efficiencies. Yet, despite these ongoing requests, some law firms seem to be stuck in their ways, clinging to traditional methods that are becoming increasingly cumbersome and outdated.

But here's the twist: clients aren't just sitting back and waiting for law firms to catch up; they're taking matters into their own hands. And we're not talking about your everyday lay clients. We're looking at in-house legal teams that are pioneering the use of cutting-edge tools like ChatGPT for drafting contracts.

ChatGPT to the Rescue: A New Drafting Dynamo

Imagine cutting down contract drafting from a tedious hour to a mere ten minutes. Sounds like a dream? Not at Klarna! This week, this Swedish fintech giant revealed that a whopping 90% of its legal team is now embracing ChatGPT Enterprise to whip up first drafts of common types of contracts in a flash.

And boy, did the results deliver! The adoption slashed the time needed to draft contracts by a landslide with 86% of counsel now actively using genAI models in their daily grind.

Selma Bogren, a senior managin legal counsel at Klarna, put it this way: “The big law firms have had a really great business just from providing templates for common types of contract. But ChatGPT is even better than a template because you can create something quite bespoke.” She elaborates, “Instead of spending an hour starting a contract from scratch or working from a template, I can tweak a ChatGPT draft in about 10 minutes. You still need to adapt it to make it work for your particular case but instead of an hour you can draft a contract in ten minutes."

From Templates to Tailored Solutions: The AI Edge

Klarna, which operate a buy-now-pay-later payment option for online shoppers isn’t just stopping at contract drafting. They’ve also introduced Kiki, their own OpenAI-driven model, which has been answering around 2,000 internal questions daily. From distributing legal know-how to tackling intricate queries, Kiki is the next step forward combing both legaltech and genAI.

Sebastian Siemiakowski, Klarna’s CEO, isn't shy about their AI endeavors: “We push everyone to test, test, test and explore,” adding on “As Klarna continues to discover applications for OpenAI’s tech, there’s the potential to take the business to new heights. We’re aimed at achieving a new level of employee empowerment, enhancing both our team’s performance and the customer experience."

A Balancing Act: AI’s Impact on Legal Staffing

Yet, with great power comes great responsibility—and a bit of controversy. While Klarna has seen a significant reduction in its workforce, dropping by over 22% this past year, they assure that AI's integration is about efficiency, not cutting costs on external counsel or reducing team sizes.

The legal industry is watching closely, with mixed reactions. While some firms, like PwC, cautiously embrace AI for experimentation, others like KPMG have kept it at arm’s length in official projects. And then there are those cautionary tales, like the Canadian lawyer penalized for submitting AI-generated, fictitious cases in court.

Looking Forward: AI and the Future of Legal Practice

As we look to the horizon, one thing is clear—AI in legal tech is here to stay. It’s about finding the right balance, leveraging AI for efficiency while navigating the ethical and practical challenges it presents.

So, whether you're an AI skeptic or a tech enthusiast, the evolution of legal practice management with AI tools like ChatGPT is something to keep an eye on. After all, who doesn’t want to make their legal practice a bit smoother and a whole lot more exciting? Cheers to innovation and efficiency in the legal world!

Thank you for being a part of Nico Legal's Newsletter! Stay tuned for more exciting updates as we delve deeper into the transformative power of digital solutions in the legal industry. More valuable resources are coming your way in future editions. Let's embrace the digital revolution together and unlock new possibilities in law. Stay tuned!