what happens when robots join law firms
TRANSCRIPT
What Happens When Robots Join Law Firms
Joshua Lenon Lawyer-in-Residence
Clio
JUDGMENT DAY
The robot takeover has already happened.
Computer Prices 2005+
0.0#
20.0#
40.0#
60.0#
80.0#
100.0#
120.0#
140.0#
160.0#
180.0#
2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#
From#the#Bureau#of#Labor#Sta;s;cs’#Consumer#Price#Index#–#pulled#03/11/2014#
Legal Service Prices 2005+
0.0#
50.0#
100.0#
150.0#
200.0#
250.0#
2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#
From#the#Bureau#of#Labor#Sta;s;cs’#Producer#Price#Index#J#Legal#Services#–#pulled#03/11/2014#
Compared Prices 2005+
0.0#
50.0#
100.0#
150.0#
200.0#
250.0#
2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#
Computer#
Legal#
From#the#Bureau#of#Labor#Sta;s;cs##–#pulled#03/11/2014#
It is now cheaper to program a computer
than hire a professional lawyer.
Why does this matter?
Constant Information Growth
• Number of Treaties on File with the UN: 550 • Number of Pages in the U.S.C.A: 200,000 • Number of Federal Court Civil Cases Filed
Last Year: 271,950 • Number of Federal Court Civil Cases
Terminated: 254,619.
Constant Information Change
J20%#
J15%#
J10%#
J5%#
0%#
5%#
10%#
15%#
20%#
25%#
60000#
65000#
70000#
75000#
80000#
85000#
2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012#
FR#Pages# %#Increase#
Source:#Federal#Register#Pages#Published#1936J2012#
Rapid changes in law affect every part
of our lives.
It has become impossible for legal professionals to know
every relevant aspect of the law
It is possible for computers to know every
relevant aspect of the law
THE FIRST SHOT
Legal is not the only knowledge sector
growing.
Medical Information is Exploding
• Journal articles published last year: 1,113,989
• Pharmaceutical trials undergone: 162,866 • Malpractice cases payouts 2012: 12,142
IBM Watson
Mines: • patient data • treatment
guidelines • Eletronic
medical data • Doctor’s notes • Clinical
studies
Medical’s Solution
Leveraging Increasing Powerful, Increasing Cheap
Computer Processing Power
0#
100#
200#
300#
400#
500#
600#
2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#
Technology allows medicine to predict and react from an
informed position.
ROBOT INVASION
Technology should allow lawyers to predict and react from an informed position.
Personal Processing Power Cannot Compete on Price or Power
0#
100#
200#
300#
400#
500#
600#
2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#
CPU#
Mind#
Computer#
Legal#
From#the#Bureau#of#Labor#Sta;s;cs##–#pulled#03/11/2014#
Technology to React
• Many services already issue alerts to changes in law, like Fastcase’s Bad Law Bot
Fewer robotic services exist that predict legal outcomes from the basis of expansive
information.
Predictive robotic services require construction by
specialized professionals
Robot Invasion • Expert Trusted
Advisor • Enhanced
Practitioner • Legal
Knowledge Engineer
• Legal Process Analyst
• Legal Risk Manager
Some predictive legal robots are already emerging.
Predict Rather Than React
Source:#Neota#Logic#
Neota Logic’s Family & Medical Leave Robot
• Rules: – Family Medical Leave Act – State Law
• Factual Variations: 15m • Questions Asked: 16-25 • Time: 2-6 minutes
User: Corporate Managers
Source:#Neota#Logic#
Neota Logic’s EU Collateral Directive Robot
• Rules: – 21 jurisdictions – 93 types of financial
obligations – 10 forms of agreement – 4 types of collateral – 11 types of counterparties – 16 types of financial
institutions • Factual Variations: 13m • Questions Asked: 8-12 • Time: 1 minute
User: Lawyers
Source:#Neota#Logic#
Using Robots Saves Firms Money
Embracing technology has reduced the costs of producing bound volumes by 60% and time to dispatch by 80%.
Source:#Applying#Con;nuous#Improvement#to#highJend#legal#services,#Clifford#Chance#2014#
POST-INVASION
It is cheaper to program a computer than to hire a lawyer
Because of this, many changes are happening
in the legal sphere
Reduced Territory
Since 2010, more than 20 law firms in Washington, DC have reduced their office space. • Contracted 270,000 Square Feet • Backend operations moved out of town
Source:#Washington#Post,#March#11,#2014#
Reduced Population
Applications to law school have dropped 20% since 2008 Of those students completing law school in 2012, only 56% had long-term, full-time jobs that required Bar passage – i.e. lawyers Law firms are shedding non-professional staff
Source:#American#Bar#Assoc.#Sec;on#of#Legal#Educa;on#2012#Law#Graduate#Employment#Data#
Reduced Trade
• Business steering work away from law firms – In-house legal departments hiring technology
vendors over law firms for discovery
• Consumers unable to afford traditional legal services – Average person must work 7-10 hours to pay for
1 hour of lawyer’s time
Source:#Gartner#Legal#IT#2020#Scenario###
CONCLUSION
Robots will not replace Lawyers
Robots WILL do the work of many traditional lawyer duties, like e-discovery & compliance, taking some business and driving efficiencies Law firms that embrace robot colleagues will have a competitive advantage Lawyers that can build robots will be in demand
Thank You
Joshua Lenon [email protected] @JoshuaLenon Linkedin.com/in/joshualenon
Image#by#Richard#Stevens,#creator#of#Diesel#Swee;es,#used#without#permission.##