Off the Shelf or BYO (Build Your Own) LLMs: What’s the Long-Term Play?

The legaltech landscape is buzzing with conversations around the adoption of Large Language Models (LLMs). With speed to market as the current mantra, the pressure is on for BigLaw to stake their claim in the LLM space. But as the initial excitement settles, a pivotal question emerges: Should you opt for an off-the-shelf LLM or invest in building your own (BYO) solution? Let’s delve into the strategic considerations that will define the long-term success of your LLM initiatives.

The Appeal of Off-the-Shelf LLMs

Off-the-shelf LLM solutions offer a tempting proposition: instant deployment, lower upfront costs, and a broad range of functionalities that can be adapted to a variety of use cases. For many firms, these ready-made models are the quickest way to integrate AI into their operations and start reaping the benefits. They are ideal for firms looking to automate routine tasks, enhance research capabilities, or streamline client communications without the time and resource investment required to develop a custom solution.

The BYO LLM Advantage: Why Customise?

While off-the-shelf solutions offer speed and convenience, a BYO (Build Your Own) approach to LLMs provides a strategic edge that can pay dividends in the long run. Custom LLMs are designed to align closely with your firm's specific needs, ensuring that the model is trained on your proprietary data, understands the nuances of your practice areas, and integrates seamlessly with your existing technology stack.

1. Tailored Performance and Accuracy

Custom LLMs are trained on data that is directly relevant to your business, which means they can provide more accurate and contextually relevant outputs. This is particularly critical in the legal sector, where the ability to understand and interpret complex legal language and context is paramount. By leveraging domain-specific datasets, custom LLMs can enhance precision, reduce errors, and ultimately provide a higher level of service to your clients.

2. Deep Integration with Existing Systems

A BYO LLM can be built to integrate deeply with your firm’s existing systems, from document management and case management software to client relationship management (CRM) platforms. This deep integration not only streamlines workflows but also ensures that your AI tools are working in harmony with your broader IT ecosystem, rather than existing as standalone applications.

3. Enhanced Security and Compliance

In the legal industry, data security and compliance are non-negotiable. A custom LLM allows you to maintain full control over your data, ensuring that it remains within your secure environment and complies with industry regulations such as GDPR or HIPAA. Off-the-shelf solutions, by contrast, may involve sharing data with third-party providers, which could introduce security risks or compliance challenges.

4. Long-Term Cost Efficiency

While the initial cost of developing a custom LLM might be higher, the long-term benefits often outweigh the upfront investment. Custom LLMs can be fine-tuned over time to improve performance, reduce the need for workarounds, and avoid the limitations of generic models. This adaptability not only leads to better outcomes but can also result in significant cost savings as your firm grows and evolves.

The Alternative Hybrid Approach: What Does It Mean, How Safe Is It, and Does It Have Legs?

For firms seeking a middle ground between speed and specificity, the hybrid approach of customisable LLMs offers a compelling solution. These models start with a pre-trained foundation, often built on vast datasets covering diverse topics, and are then fine-tuned to meet specific business needs.

What Does It Mean?

A hybrid customisable LLM combines the rapid deployment of off-the-shelf models with the tailored precision of custom solutions. Firms can leverage pre-trained models and adjust them to better understand industry-specific terminology, context, and workflows. This approach offers the flexibility to integrate with existing systems while also maintaining the potential for ongoing improvements and refinements.

How Safe Is It?

Hybrid LLMs offer enhanced safety and security compared to generic models. By fine-tuning these models within your secure environment and ensuring that data remains in-house, firms can maintain compliance with industry regulations and minimise security risks. The ability to control and customise the data used for training ensures that sensitive information is protected and that the model’s outputs are aligned with your firm’s standards and requirements.

Does It Have Legs?

The hybrid approach to LLMs is not just a stopgap; it has significant long-term potential. As AI technology continues to evolve, the ability to customise and refine models will become increasingly valuable. Firms that invest in hybrid LLMs today will be well-positioned to adapt to future advancements, ensuring that their AI tools remain relevant and effective. The flexibility and scalability of hybrid models make them an attractive option for firms looking to balance immediate needs with long-term strategic goals.

The Strategic Long-Term Play

The choice between an off-the-shelf LLM and a custom-built solution ultimately depends on your firm’s strategic priorities. If you need to deploy AI quickly and at a lower cost, an off-the-shelf model might be the way to go. However, if you’re looking to gain a competitive edge, enhance your firm’s capabilities, and future-proof your operations, investing in a BYO LLM could be the smarter move.

In a rapidly evolving legal landscape, where technology is becoming a key differentiator, the ability to customise and control your AI tools could be the factor that sets your firm apart from the competition. As AI continues to advance, the firms that take a strategic approach to their LLM investments will be better positioned to lead the industry, delivering superior outcomes for their clients and maintaining their market leadership.

Making the Right Choice for Your Firm

As the race to integrate LLMs into legal practice heats up, it’s important to look beyond the immediate benefits and consider the long-term implications of your AI strategy. Whether you choose an off-the-shelf solution or decide to build your own, the key is to align your choice with your firm’s unique needs and strategic goals. By taking a thoughtful and informed approach, you can ensure that your investment in LLMs not only delivers value today but also positions your firm for success in the future.Explore your options and start building a smarter future with LLMs.

Get in touch if you want to up skill and learn more about AI and LLMs. The next cohort of the Legal Technology & Innovation Certificate is now open for bookings. Reach out to [email protected] or [email protected]

Source: Intellect2 'Why Choose a Customized Large Language Model (LLM) Solution Over an Off-The-Shelf Solution? July 2024.