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From Promise to Practice
Implementing AI in Legal Environments
Lexpo ’24
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Source: https://www.artificiallawyer.com/2024/05/28/the-primary-purpose-of-legal-tech-is/
What is the primary purpose of legal tech?
6%
20%
62%
d) Reduce cost of legal services
c) Give lawyers more convenience
b) Provide jobs for ex-lawyers ;-)
a) Help lawyers make more money 12%
e)To create value for your clients
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Scale
Research Experiment
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$200B
Source: https://www.goldmansachs.com/intelligence/pages/ai-investment-forecast-to-approach-200-billion-globally-by-2025.html
Investment in AI
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$20B
https://www.economist.com/business/2024/03/17/just-how-rich-are-businesses-getting-in-the-ai-gold-rush
Growth in revenue
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$2400B
Growth in Market Cap Tech Titans
Bron: https://www.accel.com/noteworthy/accel-2023-euroscape-generation-ai
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$2400B/$20B=120
Multiple???
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Are we having a déjà vu?
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Are we having a déjà vu?
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Initial boom and unrealistic expectations with e-commerce
B2C to B2B Shift
Infrastructure investment
Market crash (and recovery)
A brief history of the dot-com bubble
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https://www.morningstar.hk/hk/news/243779/nvidia-2023-vs-cisco-1999-will-history-repeat.aspx
Is NVIDIA the Cisco of 2024?
clayrichard.eu
Wishful thinking or future reality?
Bron: https://www.gspublishing.com/content/research/en/reports/2023/03/27/d64e052b-0f6e-45d7-967b-d7be35fabd16.html
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March 2023
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Feb ’23 results skewed by repeat
test takers
Source: https://link.springer.com/article/10.1007/s10506-024-09396-9
Januari 30 2024
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If you use it there is trouble
The Catch-22 of AI
If you don’t it will be double
clayrichard.eu
clayrichard.eu
Bringing more legal tasks in-house has
generated immediate benefits in terms of cost
(60-80%), quality, engagement and speed (25%)
Luis-Xavier Hernandez, Unilever
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“ While technology will not replace lawyers and notaries, the
profile will shift towards tech-savvy professionals.“
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“The question of whether a computer can think is no more
interesting than the question of whether a submarine can swim.”
― Edsger W. Dijkstra in Texas, 1984
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- Understanding AI
- Key features and limitations
- What is RAG and what can we do with it?
- How is AI being adopted by the legal sector?
- What can we learn from early adopters?
- How can you create value with AI?
What we’ll be covering
clayrichard.eu
Understanding AI
Rule based
Generative
Machine learning
Recognition
AI
LLMs
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LLMs in a nutshell
- 175 billion artificial neurons (GPT-3.5)
- 45 terabytes of training data (GPT-3.5)
- Black box
- Results are generated based on statistics
- “Autocomplete on steroids”
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Dog
Meaning Form
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External Internal
Legal research
legislation, case law,
literature
Case data, best practices, precedents
Unstructured proprietary
data and content
Data
Knowledge
Value
AI
Legal advice,
documents, litigation
Creating value with AI in legal
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Key features
- Semantic search
- Text generation (drafting)
- Text analysis (reviewing)
- Data extraction
- Clustering (predictions)
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Drafting & review
Generate text
Legal research
Formulation
Red lining
Translation
Summarise
Contract management
Data extraction
Workflows
Negotiate
Legal AI assistent
Formulating questions based on the facts
Legal research
Memo writing with link to sources
Litigation
Predicting outcomes
Structuring documents
File search
Timeline of events
Key applications
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Key players
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https://www.nytimes.com/2023/05/27/nyregion/avianca-airline-lawsuit-chatgpt.html
Key limitations
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Stanford RegLab & Institute for Human-
Centered AI published on 2 Jan 2024
Hallucinations from legal prompts
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Retrieval Augmented Generation
RAG to the rescue!
Source: https://dho.stanford.edu/wp-content/uploads/Legal_RAG_Hallucinations.pdf
clayrichard.eu
Retrieval Augmented Generation
RAG to the rescue!
Source: https://dho.stanford.edu/wp-content/uploads/Legal_RAG_Hallucinations.pdf
clayrichard.eu
Retrieval Augmented Generation
RAG to the rescue!
Source: https://dho.stanford.edu/wp-content/uploads/Legal_RAG_Hallucinations.pdf
clayrichard.eu
Retrieval Augmented Generation
RAG to the rescue!
Source: https://dho.stanford.edu/wp-content/uploads/Legal_RAG_Hallucinations.pdf
clayrichard.eu
RAG, turns out, is no panacea
New Stanford study reveals hallucinations and incompleteness
Source: https://dho.stanford.edu/wp-content/uploads/Legal_RAG_Hallucinations.pdf
clayrichard.eu
RAG, turns out, is no panacea
What to check when using AI for legal research
1.Groundedness: do key factual propositions make valid references to relevant legal
documents?
2.Correctness: is the response factually correct and relevant?
Source: https://dho.stanford.edu/wp-content/uploads/Legal_RAG_Hallucinations.pdf
clayrichard.eu
• There is almost never one clear cut answer to legal prompts
• Document relevance is not based on text alone
• An LLM can’t synthesize facts while keeping the appropriate legal
context in mind
RAG limitations
Source: https://dho.stanford.edu/wp-content/uploads/Legal_RAG_Hallucinations.pdf
clayrichard.eu
We are not 68%, but 90% accurate
Thomson Reuters’ response
https://www.artificiallawyer.com/2024/06/10/thomson-reuters-contradicts-stanford-genai-study-we-are-90-accurate/
‘AI-Assisted Research uses large language models and can
occasionally produce inaccuracies, so it should always be
used as part of a research process in connection with additional
research to fully understand the nuance of the issues and further
improve accuracy.
‘We also advise our customers, both in the product and in
training, to use AI-Assisted Research to accelerate thorough
research, but not to use it as a replacement for thorough
research.’
clayrichard.eu
Meanwhile, AI is making its way
into our workplace
Whether we like it or not
https://reutersinstitute.politics.ox.ac.uk/sites/default/files/2024-05/Fletcher_and_Nielsen_Generative_AI_and_News_Audiences.pdf
clayrichard.eu
Company guidelines for using free LLMs
Paid subscription to LLM for (all) employees
Private server with general purpose LLM or
subscription to Legal LLM with data protection
Narrow purpose legal AI assistance or
replacement of humans
General purpose legal AI assistance
The 5 Adoption Levels of Generative AI In Legal
Sleepers
Explorers
Adopters
Innovators
Leaders
clayrichard.eu
Make or buy?
2024
2020
Building blocks
Custom software
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“Programming is not the same as writing
code.”
8 lawyers + office manager
Built an in-house platform using no-code solutions
Contains reviewing, drafting and transcription features
LLM/AI provider agnostic
Enables prompt/ knowledge sharing
clayrichard.eu
“..the smartest generalist frontier models beat
specialized models in specialized topics”
Ethan Mollick
Associate Professor at The Wharton School. Author of Co-Intelligence
clayrichard.eu
clayrichard.eu
Use cases that are safe to do
- Summaries
- Translations
- Transcriptions and next steps
- Text generation (drafting)
- First step of legal research
With generative AI provided your data is secure
clayrichard.eu
AI doesn't always make your
results better
"The jagged frontier of AI capabilities"
AI will make your
results better
AI makes no
difference
AI makes your
results worse
Cyborg
Centaur
Source: https://www.oneusefulthing.org/p/centaurs-and-cyborgs-on-the-jagged
clayrichard.eu
5 ways to create value with AI
• Educate your team!
• Invest in knowledge management
• Consistency in content and lay out is key
• 80/20 is a universal rule. Find it in your organization and start there.
• Try things out and expect no more than 10-20% efficiency for now
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Download this presentation and subscribe on clayrichard.eu
Thank you for listening

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From Promise to Practice. Implementing AI in Legal Environments

Editor's Notes

  1. https://www.nytimes.com/2023/05/27/nyregion/avianca-airline-lawsuit-chatgpt.html A New York lawyer has asked for mercy from a federal court after admitting to employing artificial intelligence in legal research that resulted in fabricated court precedents being used as "evidence". Attorney Steven Schwartz used AI language model ChatGPT to come up with half a dozen nonexistent court cases, including allegedly impactful quotable quotes. Avianca airline discovered the scam when it tried to check the references in March. Schwartz said he "greatly regrets" using ChatGPT to substantiate his legal argument and "will never do so in the future without absolute verification of its authenticity.