As a lawyer, life is divided into precious 6-minute increments \u2013 each tenth of an hour representing an expensive addition to an already-burgeoning client bill. \u00a0Worse: as a junior associate, much of this precious time is spent on tedious, repetitive tasks such as due diligence and standard document production.\u00a0 In short, tasks that do not require the skills learned over many expensive years at law school. \u00a0With both law firms and clients aware of these inefficiencies, the legal profession has faced increased pressure to perform many tasks faster, more efficiently and at a lower cost. \u00a0Achieving this is key for law firms to attract and retain both clients and legal talent in a highly competitive legal market [1].<\/p>\n
Since the process of law is inevitably time-consuming, law firms are increasingly turning to legal technology incorporating machine learning to improve these processes. \u00a0To the combined dismay and relief of many a junior legal associate, legal technology has been developed which automates, for example, the legal due diligence process.<\/p>\n
In response to this, top U.S. law firm Latham & Watkins (Latham) elected to use Kira Systems\u2019 legal software (Kira) from November 2017 [2]. \u00a0Kira converts files into machine-readable form and thereafter uses machine learning to undertake contract analysis on both standard and non-standard contracts [3][4]. After completing its analysis, Kira can create \u201ccustom summary charts and summaries for almost any data point\u201d [5]. Further, since Kira can be taught by users to identify provisions in documents, it is expected that its efficacy and relevance for users will increase over time [6]. In an industry where time is everything, Kira has been shown to increase both the efficiency and the accuracy of due diligence review [7].<\/p>\n
Short and medium term<\/strong><\/p>\n In the short term, the benefits of Kira are obvious. By automating the time-consuming process of due diligence, it frees lawyers to focus on more interpersonal or complex tasks such as meeting with clients, negotiations and court appearances [8][9]. More personally, for junior lawyers this represents exposure to intellectually challenging assignments earlier in their career [10].<\/p>\n In the medium term, it is expected that Kira will be applied in a broader range of reviews, will be used to identify key points for negotiation in documentation, and will even assist companies with regulatory compliance [11]. Industry trends also suggest that the medium term may see an even broader range of uses of legal technology. \u00a0From software which enables law firms to use previous deal data to inform current fee estimates, to algorithms which predict litigation outcomes based on pattern recognition from historic trial data \u2013 legal technology has the potential to revolutionize the legal profession [12][13].\u00a0 As Latham prides itself on being at the \u201cforefront of innovation in the legal sector\u201d, it is expected that it will employ further technologies in the medium term to ensure it continues to deliver efficient client service [14].<\/p>\n Recommendations<\/strong><\/p>\n Lawyers tend to be famously time-starved and risk averse. \u00a0When confronted with technology which requires a time-commitment to training and practice, adoption rates can be slow and attention spans short [15].\u00a0 To ensure Latham remains an early adopter of legal innovation:<\/p>\n Conclusion<\/strong><\/p>\n In an increasingly competitive legal market, law firms are under pressure to produce more for less. \u00a0As necessity is the mother of invention, legal technology has been developed to bridge the gap. Existing technology is revolutionizing the due diligence process and the sphere of application is expected to be even broader in the medium term. Perhaps future generations of legal associates will sleep more after all.<\/p>\n Important open questions<\/strong><\/p>\n Confidentiality and privacy are of vital importance in the legal profession, but the 2016 leak of the \u201cPanama Papers\u201d demonstrates that law firms are highly appealing targets for hackers.\u00a0 Since machine learning in the context of legal technology requires access to large amounts of confidential data:<\/p>\n [768 words]<\/p>\n Footnotes<\/strong><\/p>\n [1] Deloitte LLP, \u201cDeveloping Legal Talent. Stepping into the Future Law Firm\u201d, February 2016, https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/uk\/Documents\/audit\/deloitte-uk-developing-legal-talent-2016.pdf<\/a>, accessed November 2018<\/p>\n [2] \u201cLatham & Watkins Adopts Kira to Improve the Transactional Due Diligence Process\u201d Latham & Watkins press release (Los Angeles, CA, November 28, 2017)<\/p>\n [3] Ibid.<\/em><\/p>\n [4] Kira, \u201cHow Kira Works\u201d, https:\/\/kirasystems.com\/how-it-works\/<\/a>, accessed November 2018<\/p>\n [5] Ibid<\/em><\/p>\n [6] Keiser, B. Artificial Intelligence and the Law. Online 性视界er,<\/em> 41(3) (2017), 16-20, ABI\/INFORM via ProQuest, accessed November 2018.<\/p>\n [7] Bernard Marr, \u201cHow AI And Machine Learning Are Transforming Law Firms And The Legal Sector\u201d Forbes, <\/em>May 23, 2018, https:\/\/www.forbes.com\/sites\/bernardmarr\/2018\/05\/23\/how-ai-and-machine-learning-are-transforming-law-firms-and-the-legal-sector\/#797037c32c38<\/a>, accessed November 2018<\/p>\n [8] Ibid<\/em><\/p>\n [9] Charles Lew, \u201cArtificial Intelligence And The Evolution of Law\u201d, Forbes<\/em>, July 17, 2018, https:\/\/www.forbes.com\/sites\/forbeslacouncil\/2018\/07\/17\/artificial-intelligence-and-the-evolution-of-law\/#5d1197a036ee<\/a>, accessed November 2018<\/p>\n [10] Sobowale, J. \u201cBeyond imagination: How artificial intelligence is transforming the legal profession.\u201d ABA Journal<\/em>, 102(4), 46 (2016), accessed November 2018<\/p>\n [11] \u201cLatham & Watkins Adopts Kira to Improve the Transactional Due Diligence Process\u201d Latham & Watkins press release (Los Angeles, CA, November 28, 2017)<\/p>\n\n
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