What AI means for Legal
From an AI robot through to new computer platforms, the technology is continuously evolving but is primarily aimed at delivering legal services better, faster and more cost effectively. For larger law firms, the focus tends to be on automating tasks usually carried out by junior lawyers, but the opportunities don’t end there.
In 2011, Taylor Vinters’ Head of Technology and Outsourcing in Asia, Tim Pullan, approached us with the business case for what would become ThoughtRiver. The technology start-up has developed software that uses AI to transform contract management.
How AI transforms contract management
It does this by scanning and interpreting information from written contracts used in commercial risk assessments and bringing the data alive with visuals. The information is presented in a central online dashboard enabling in-house financial officers, general counsel and contracting functions across a range of business types to make better decisions more quickly.
The visuals include risk scoring, clause scoring, and risk heat maps and gauge graphics – think credit score visuals - which help contracting teams to communicate risk information in a far more compelling and engaging way.
Boosting productivity
One of the main drivers of this type of AI is boosting productivity. Without the use of ThoughtRiver, the process for reviewing contracts is the same as it was 10 years ago, which means the average time it takes a lawyer is also the same. If a client has twice as many deals to manage as they did 10 years ago, this means that it could cost twice as much for a law firm to deal with it.
The ThoughtRiver software addresses this by boosting efficiency with a database that builds underneath the transactional support it’s providing, so it learns from itself. It assesses contractual positions taken by an individual client against its total experience of market norms – either for that client, other clients, an industry sector, or the transaction a lawyer is working on.
Law firm as LegalTech incubator
ThoughtRiver represents the next generation of AI, which is continuously evolving with investment and research.
As an entrepreneurial firm ourselves, Taylor Vinters saw the potential of this concept and helped to incubate the ThoughtRiver technology – read more about why we incubated our own tech spin-out here.
This collaborative way of working was recognised at the Financial Times' Innovative Lawyers Awards 2016 in October. Taylor Vinters was 'Highly Commended' in the Innovation in Technology and Data Analytics category for developing legal technology in a category where AI took centre stage.
What does the future hold?
The legal services sector has changed significantly in recent years. Clients demand cheaper, faster and better services and larger companies are faced with more complex regulatory and operational requirements. For law firms, our focus is increasingly on managing risk for our clients rather than transactional support. To meet all of these needs AI is essential.
As we continue to invest and experiment with the technology, the opportunities for law firms and our clients are vast. Developing AI in creative ways will not only ensure we service our clients more effectively and become more productive, but break the traditional law firm mould, bringing fresh ideas to the table which will benefit all parties and the sector as a whole.
To find out how we support entrepreneurs and innovative businesses, please contact Matt Meyer E: [email protected]
For further information about ThoughtRiver, please contact Tim Pullan E: [email protected]