Building the data-driven law firm
An in-depth look at how the use of data has become inextricably linked with the practice of law and how it will influence the law firm of the future.
Keeping control of all that data is one challenge; leveraging it to the greater good much harder. Other professions have had years of experience integrating data analytics into their businesses and using analytics to predict outcomes; for legal, this is a relatively new challenge, and one that could potentially change the way the industry works.
Despite the huge amount of data in the average law firm, data-driven decision-making is relatively new and uncharted. With the knowledge that some 90 percent of data in the world today was created in the last two years, this needs to change.
Building the data-driven law firm looks at how the use of data has become inextricably linked with the practice of law; how it can be utilized to the good and the safeguards that must be put in place to mitigate the bad; how Big Data will revolutionize the way lawyers work, and the cases they will work on; and how new uses for data (including blockchain and the Internet of Things) will influence the law firm of the future.
Table of Contents
|About the authors||xi|
|Chapter 1: The data-driven mindset – the culture and habits of data centricorganizations||1|
|Lessons from practice||3|
|Locke Lord – pricing certainty for clients||3|
|Alston & Bird – the cultural shift behind new ways of working||4|
|Shearman & Sterling – a data strategy that leads to client impacts||6|
|The whole-firm approach||8|
|Chapter 2: The richness – and bias – of legal data||11|
|Part 1: What is AI?||11|
|Part 2: What has made the AI revolution possible?||13|
|The continued computing power revolution||15|
|Part 3: What is the role of data in AI?||16|
|Risks with data||16|
|Risks with data for unsupervised learning systems||18|
|Chapter 3: How to use data to make your business better||21|
|A brief history of UTBMS codes and LEDES invoices||21|
|Billing data is readily available||23|
|Data-driven billing at law firms||24|
|Data-driven billing at clients||26|
|Course of action||27|
|Chapter 4: Machine learning and AI – paths to legal innovation||31|
|Artificial intelligence and machine learning – what are we even talking about?||31|
|Innovation how to – the importance of change management||32|
|Barriers to innovation||33|
|Machine learning/AI based legal research||35|
|Document and contract review||35|
|Contract management applications||36|
|Document drafting tools||36|
|Chapter 5: Unlocking contractual data||39|
|Contractual data – abundant but not readily useable||39|
|Unstructured linguistic data||40|
|Structured or digitized data||42|
|Converting historic data into structured format – use of AI||44|
|Capturing structured data when contracts are created||45|
|Implications for legal practice?||47|
|Chapter 6: How data is transforming the relationship between lawyer and client||49|
|How is data being used?||49|
|Data at the firm-level||51|
|Data, data, data||54|
|Leveraging data into actionable client analytics||56|
|A space for innovation||58|
|Chapter 7: Blockchain and the data-driven law firm||61|
|How will Blockchain affect data-driven law firms?||63|
|Impact on client legal needs||64|
|Opportunities to enhance efficiency and performance within law firms||65|
|Should lawyers learn to code?||66|
|Where Blockchains will likely compete with law firms||66|
|How will Blockchains affect data-driven law firms?||67|
|What data-driven law firms should be doing now||68|
|Chapter 8: The “legals” of Big Data for law firms||71|
|Drilling for data||71|
|Who owns the “crude oil” of Big Data?||72|
|What comes out of the refinery; making crude data oil into Big Data||74|
|Tanker sabotage – how to deal with damaged data||75|
|Chapter 9: How data will enable the shift towards the productization of legal services||77|
|A business model in transition driven by data||77|
|Changes in consumption of data||79|
|Data-driven customers driving changes||80|
|Productization underpinned by data||82|
David Curle, director, enterprise content - technology and innovation, Thomson Reuters Legal Executive Institute, supports Thomson Reuters' About the authors legal business with research and thought leadership about the legal technology and innovation ecosystem, and the changing legal services industry. Prior to joining Thomson Reuters in 2013, he led coverage of the global legal information market for the research and analysis firm Outsell, Inc., tracking industry performance and trends. He is a regular contributor to the Legal Executive Institute blog and Forum Magazine, and speaker at legal industry events. He has a JD from the University of Minnesota Law School and a BA in History from Lawrence University.
Thomas Hamilton is the VP of strategy and operations at ROSS Intelligence, where he coordinates efforts across the company to ensure that sole practitioners, legal aid groups, law firms, government agencies, corporate law departments, state bar associations, and law faculties are able to benefit from cutting edge developments in artificial intelligence research. Thomas believes passionately in the ability of technology to improve access to justice worldwide, and as employee #1 at ROSS Intelligence, speaks to groups around the world on legal technology innovation, law firm strategy, and the transformative economic potential of artificial intelligence technology.
Holly Urban is the CEO and co-founder of EffortlessLegal LLC, an award-winning thought leader and innovator in software automation solutions for law firms. Holly has over 20 years of progressive experience in management and leadership positions in a variety of industries including technology, consulting, banking, retail and hospitality. For more information, visit https://EffortlessLegal.com.
As Littler's first chief data analytics officer, Aaron Crews leads the firm's data analytics practice and Big Datastrategy. Leveraging an extensive background focused on the intersection of technology, business, and thelaw, Aaron's team of lawyers, analysts, statisticians, and data scientists work with clients and case teams to harness the power of data to build superior legal strategies and improve legal outcomes. This team also advises the firm and its clients on the development, implementation, and use of analytic models, machine learning and algorithm-driven technologies (often called AI), and using data visualization/data story-telling to enable insight, drive understanding, and extract value. Littler's long-held dedication to innovation is exemplified in this team, and the firm is one of the first in the United States to hire a leader dedicated exclusively to data analytics and Big Data into a position in its C-Suite.
Edward Chan is a partner at Linklaters LLP, specializing in the prudential regulation of banks. Edward read philosophy, politics and economics at Balliol College, Oxford University, and holds a master's degree in law from the London School of Economics. Edward is also the founder of Nakhoda, an internal start-up within Linklaters LLP, which is also the firm's flagship technology offering. JENNIFER ROBERTS Jennifer Roberts manages the strategic research function at Intapp, responsible for the analytics and research component that supports product development and thought leadership for new initiatives. Leveraging her skills to advocate, evangelize and build data-fueled products and insight, she examines theprofessional services industry to drive analytical intelligence that informs strategic decisions and solves organizational needs. Prior to joining Intapp, Jennifer received her MA from the University of Minnesota in advanced statistical methodology and performance measures.
Robert Millard is founder and a partner at Cambridge Strategy Group, a management consultancy based in Cambridge, UK, focused primarily on law and other professional service firms and other deep knowledge enterprises. Rob is immediate past co-chair of the IBA's Law Firm Management Committee and currently serves on the steering committee of the IBA's President's Task Force on the Future of Legal Services.
One of the first women solicitors in the City to specialize in advising technology businesses on IT law, Joanne Frears, solicitor and leader in IP and technology law, Lionshead Law, has been advising on technology law and commercialization of IP for over 20 years. Providing advice and strategy on IP, exploitation, commercialization and defense, she has particular expertise in law for AI, AR and VR, Blockchain, cybersecurity and defense of patents against trolls. She also has an academic interest in emerging technology and how the law deals with everything innovative. Joanne is a member of the Accord Project (participating in the IP and Technology Working Groups) and is legal counsel to the British Blockchain Association and the IBA and holds a Masters in comparative EU, UK, and US IP law.
Simon has held numerous positions within the professional services sector over the last 25 years - at a FTSE 100 legal information solution provider, a legal technology consultancy, a law firm, an accounting firm, and a legal membership organization. Simon has qualifications in law and tax, and deep experience in commercial product strategy. Simon has board level experience of both executive and non-executive roles, and as CEO of a technology start-up. He has a strong track record in creating innovative product strategies resulting in multiple new multi-million pound high growth lines of business. Simon led the new investments product strategy area at LexisNexis and created and launched many of the next generation content and workflow product offerings for lawyers. At the Law Society Simon ran the commercial arm of the organization and restructured a set of commercial investments through taking board seats. He also implemented a new commercial strategy including a significant shift in focus to legal technology innovation, including the launch of a legal tech-focused Barclays EagleLab accelerator. Simon has also held senior knowledge management roles in both law and accounting firms. Simon established earlsferry advisory towards the end of 2018 to help people with their product strategies, whether they are technology businesses, professional services businesses or investors into these spaces.