• If you’re a student of AI you should at least skim through this summary of MIT’s recent Platform Strategy Summit. It presents an excellent overview of the state of AI (and a bit of blockchain) from academic and business perspectives (even Thomson Reuters). “Most corporate app development effort today is spent on keeping things running, not on changing and innovating.” (Many cool infographics!)

 

  • This article (Does the legal profession have a moral duty to innovate?) appeared in Canadian Lawyer: “The panel also discussed the fact that more than 30 states in the U.S. have adopted the American Bar Association’s model rule that imposes a duty of technology competence on lawyers. The Federation of Law Societies in Canada is said to be looking at changing the model code of professional conduct in Canada to impose a duty of technology competence similar to the ABA’s rule.”

 

  • This piece (Are big data and artificial intelligence throwing down a new regulatory gauntlet?) from American Enterprise Institute is likely to set you to thinking about the regulation of information technologies in new ways. ‘…(I)f there is a principle to guide the future regulation of big data and AI, it is to focus on first understanding information asymmetries and how they affect the distribution of the gains, rather than the technologies that they are associated with.”

 

  • From The Law SocietySix ways the legal sector is using AI right now. The usual applications are discussed here, plus a bit about threats and a forecast. Interesting definition” “When we talk about AI in 2018 (and for the purposes of this article), we mean clever forms of computerised automation and search.”

 

  • More Reynen Court news hereClifford Chance and Latham Invest in ‘App Store for Legal Tech’. “They are putting an undisclosed amount of money into Reynan Court, the highly touted tech venture that provides law firms with a single platform to manage the procurement, deployment and management of third-party apps. The CIOs of both firms have joined the tech startup’s board of directors.” Coverage from Artificial Lawyer here.

 

  • This, from the Solicitors Regulation Authority (SRA): Law firms must be able to explain decisions made by AI. (There’s a link to a larger paper.) “While AI has not been 100% accurate in various tests, the SRA said it has never proven any less accurate than work carried out by humans, and in some cases, it has been more so. Looking at some of the issues AI’s use would raise, however, the SRA said firms may find it difficult, where decisions were made by “self-learning AI”, to explain the “assumptions and reasoning behind some automated decisions”.”

 

  • This, from Missouri Lawyers WeeklyNew services or products that support Missouri’s legal community: Manu Stephen. “…(T)he Inventr app uses artificial intelligence to help companies discover patentable inventions in 24 hours. … The app also helps companies to find attorneys to work on their patents by providing the companies with a list of attorneys who have been vetted and preselected by Inventr.”

 

  • “Over 2,000 U.S. adults answered the online survey earlier this month. The survey was conducted by the Harris Poll at the request of Your Lawyers Online, an online legal service provider that guides clients through family, animal and estate planning law.” 69 Percent of People Would Use Online Legal Services Over Attorneys. Other juicy stats here.

 

  • And speaking of surveys, surprise! Report Proves What We Already Knew: Clients Will Pay Any Fee Hike To Get Brand Name Firms. “This has long been the conventional wisdom among legal industry observers, but the new Citi Private Bank Law Firm Group Report went out and actually gathered some hard data to see if our gut instincts are correct. It turns out… they are.” More results survey here.

 

  • A2J: Start-up aims to help NFP sector identify legal nature of problems. “A law graduate will next year launch an artificial intelligence-backed (AI) product that uses natural language processing (NLP) to help not-for-profit agencies identify precisely the legal nature of a problem, potentially cutting out time-consuming confusion.” Story here.

 

  • Artificial intelligence set to free solicitors from lower-level work. “The report, Technology and legal services, suggests that rapid developments in AI will mostly be focused on back-office functions.” More here.

 

  • IBM Unveils Its Vision For The Future Of Artificial Intelligence. “IBM, which has been working on artificial intelligence since the 1950s, is not only keenly aware of these shortcomings, it is investing heavily to improve the basic technology. As Dario Gil, Chief Operating Officer of IBM Research recently wrote in a blog post, the company published over 100 papers in just the past year. Here are the highlights of the technology being developed now.” This is a fast, interesting read.

 

Posts by Law Firms

  • Two of my posts in a row for Dentons‘ Giangiacomo Olivi. Here’s his latest, Non-Personal Data Regulation, AI and the data economy: an Italian perspective. “This new piece of legislation aims to strengthen the principle of free circulation of non-personal data in the EU for the benefit of businesses and the public alike, with a view to foster the European data economy and the future Digital Single Market.”

 

  • Also from Dentons, Eric J. TanenblattAndrew Shaw and Crawford Schneider wrote: Federal Autonomous Vehicle Bill Moves Closer To Passage. “The support of the American Association for Justice, an influential trial lawyer advocacy group, is a welcome sign for the bill. The new-look legislation, circulated Monday night, was altered to reaffirm state and local authority over motor vehicle operation, mitigate concerns about the effect of federal preemption on state common law and statutory liability and constrain the use of pre-dispute arbitration clauses related to death or bodily injury.” Post here.

 

  • Winston Maxwell and Gauthier Vannieuwenhuyse of Hogan Lovells postedRobots Replacing Arbitrators: Smart Contract Arbitration. The 10-page scholarly journal article is here. “Given the current legal framework, fully robotised arbitration will not become a reality in the near future. However, prospects of automated expert determination are much more likely. They will lead the way to speedy, less-costly and accurate calculations or determinations, to the benefit of parties in various specific sectors.”

 

  • This, also from Hogan: The emergence of intelligent systems in health care. “With artificial intelligence being implemented across the health care continuum, FDA and other agencies find themselves contending with the prospect of regulating a moving target.”

 

  • Alan S. Levins and Amanda M. Osowski of Littler Mendelson posted: Self-Driving Trucks And Labor Law—A Look Ahead. “Welcome to the future: The year is 2020 and an organized—i.e., unionized trucking company—”L2M2″ has announced it is acquiring a convoy of autonomously powered—i.e., “self-driving”—transportation vehicles.” Post here. (Seems I’m failing at putting my futurist stories in one place.)

 

(More law firm posts under Blockchain below.)

 

Prognostications

  • From Inc.: Here Are 27 Expert Predictions on How You’ll Live With Artificial Intelligence in the Near Future. “It might make life better or it might be the end of us. Either way, it’s coming and here’s what it’s going to look like.”

 

  • This post includes a section on AI, so I did not include it with the Blockchain predictions below. Blockchain And Crypto Industry Predictions For 2019.

 

  • Here’s a half hour podcast in which Elie and Joe talk to Ralph Baxter, former head of Orrick and current board member of Intapp, about the future of the legal industry. (Ralph joins about 7 minutes in.)

 

(More predictions under Blockchain below.)

 

Press releases

  • Lex Mundi Partners With Diligen To Offer Artificial Intelligence Contract Review Tool. Release here.

 

  • Evisort launch Document Analyzer: advanced AI data mining, search and reporting tech. Release here.

 

  • Seal Software releases most comprehensive contract analytics platform for banks and financial services firms. Release here.

 

  • Innovate UK backs bid to create “thinking” legal AI. “Contract review business ThoughtRiver has been awarded funding from the government for a £400,000 development project to develop “thinking AI”.” Story here. Coverage from Artificial Lawyer here.

 

Blockchain

  • BakerHostetler‘s Robert A. Musiala Jr. publishedCryptocurrencies Continue To Permeate Capital Markets As Blockchain Permeates Settlement Systems. “…(T)he long-sought approval of Bitcoin ETFs appears unlikely in the near future, based on recent comments from SEC Chairman Jay Clayton, who cited continued concerns over a lack of adequate investor protections, including difficulties mitigating risks related to cryptocurrencies being stolen or manipulated on exchanges.”

 

  • Scott H. Kimpel of Hunton Andrews Kurth posted: Blockchain Legal Resource: CFTC Publishes Primer On Smart Contracts. “The Primer discusses their functionality, use cases, regulatory environment and potential risks.” Post here.

 

 

 

  • From  Marc D. Powers of BakerHostetlerBlockchain Platform For Energy Commodities Announced In U.S., Restrictions Ease In Foreign Markets. This post includes several useful links.

 

  • Also from BakerHostetlerJohn C. McIlwee posted: More Blockchain Uses For Digital Advertisers, Software Licensees And Marine Insurers. This post is mainly a summary of a recent report, and here’s a link to the referenced report.

 

  • Neil Gray and Maxwell J. Eichenberger of Reed Smith posted Blockchain: Immutable Ledger, But Admissible Evidence? “(A) brief overview of blockchain technology, then addresses the current evidentiary hurdles blockchain records face, and concludes with considerations for attorneys seeking to enter blockchain receipts … into evidence and businesses implementing blockchain solutions.”

 

  • Amazon got quite a bit more serious about Blockchain in 2018, including its Blockchain as a Service (BaaS) offering: “a fully managed service that makes it easy to create and manage scalable blockchain networks using open source frameworks such as Hyperledger Fabric and Ethereum in just a few clicks.” Story here.

 

  • First Blockchain loan closes in Latin America amid transparency concerns. “Itaú’s US$100m proof-of-concept loan, provided by Standard Chartered and Wells Fargo, utilized the R3 Corda Connect blockchain platform, a paperless system that allowed the banks to assess revisions, comments and approve the club loan digitally.” Story here.

 

  • Several law school faculty from around the world contributed to: The Distributed Liability of Distributed Ledgers: Legal Risks of Blockchain. “Part of the attraction of distributed ledger systems, such as Blockchain, lies in transcending law and regulation.” Link here.

 

  • Blockchains should have ‘privacy by design’ for GDPR compliance. “Some believe that public permissionless blockchains cannot be GDPR compliant, and that private blockchains might be the answer to blockchain’s regulatory woes. Even so, private blockchains bring into question the very meaning of what a blockchain is. There is no simple answer.” Story here.

 

  • Here are some prognostications about Blockchain: Top 5 blockchain predictions for 2019.

 

  • And here4 Major Blockchain Trends to Watch for in 2019. (Not the same as those above!)

 

  • And much more here10 Ways Blockchain Technology Will Change The Legal Industry.

 

From Artificial Lawyer 

  • RelativityOne Goes Down Under With Australia Partnership. Story here.

 

  • Back to the Future For Legal AI + Automation. Story here. (Again, I’ve put prognostications is a different section.)

 

  • Slaughter and May Publishes Innovation Guide. “The 32-page report, spearheaded by Slaughters partners, Rob Sumroy and Ben Kingsley, and produced in association with Tromans Consulting, the strategy and innovation consultancy, explores both the theory behind innovation and looks at real world examples of what businesses have done and what can be learned from them.” Post here, and here’s the link to the full report.

 

  • AI Co. Diligen Wins Major Business Boost With Lex Mundi Deal. Story here and here.

 

  • Legal AI Co. Seal Launches Financial Services NLP Suite. Story here.

 

  • What is ThoughtRiver’s New ‘Thinking AI’ + What Will It Do? Story here.

 

  • Kira Systems – AL Product Review – Part One. Story here.
  • Enough Hype Already: Inside Legal’s (Over?) Excitement with AI. “While many in the legal industry still over hype AI technology, some are beginning to separate fact from fiction. But the hype hasn’t been all bad—or good—for the legal market.” The post by Rhys Dipshan is here.

 

  • Covington’s Thomas Parisi postedAI Update: FCC Hosts Inaugural Forum on Artificial Intelligence. “Chairman Pai made clear in his opening remarks that the purpose of the forum was not to initiate AI regulation at the FCC. He stated: “It’s important to note that this event is about discussion and demonstration.”

 

  • Anna Cope and Melanie Lane of CMS wrote: Disciplinaries and Performance Management: Artificial Intelligence and Emotional Intelligence. The article addresses, “AI can help to remove both conscious and unconscious bias in decision-making and to ensure consistency of approach. However, will it ever be acceptable culturally for a machine to decide to fire an employee? Where should the line be drawn when important decisions need to be made about employees’ performance or disciplinary matters? Is the human element still important in this process?”

 

  • Cadwalader’s Steven Lofchie postedAgencies Urge Banks To Pursue AML (Anti-Money Laundering) Compliance Innovation. “In a joint statement, the Federal Reserve Board, the FDIC, FinCEN, the National Credit Union Administration and the Office of the Comptroller of the Currency (the “agencies”) stated that innovation – including the use of artificial intelligence, digital identity technologies and internal financial intelligence units – has the potential to augment banks’ programs for risk identification, transaction monitoring, and suspicious activity reporting.”

 

  • In this post, Chris Cook, Katherine Bravo, KC Halm and Amy Mushahwar of Davis Wright Tremaine summarize the FTC’s hearings on Competition and Consumer protection (a month ago). FTC Hearings Exploring Algorithms, Artificial Intelligence, and Predictive Analytics Focus on Notions of Fairness, Transparency and Ethical Uses.

 

  • Here’s a complete seminar from Dentons. It’s their eighth annual CPD Bootcamp. Chasing Shiny Objects: A Practical Guide To Managing The Challenges Of Transformative Technologies. “The session covered the following: Things to consider before acquiring a transformative technology: how much is real and how much is hype? And how do you know? How select transformative technologies create unexpected privacy and other compliance challenges and ways organizations can address them. Steps organizations can take to manage common risk and liability issues, including via contracts.”

 

  • And this from Dentons Italy’s Giangiacomo OliviAI And Drones, A Love Affair (Part I). “One of the main innovative characteristics of drones is their capability to collect and process great amounts of data, including personal data, which is often difficult to manage. This implies that the future usage of drones will be increasingly linked to data analytics and AI patterns and algorithms.”

 

  • “Microsoft Corp. called for new legislation to govern artificial intelligence software for recognizing faces, advocating for human review and oversight of the technology in critical cases.” Details here.

 

 

  • K&L Gates has posted Volume 39 of its Blockchain Energizer Energy Alert, this time summarizing three recent developments.

 

  • More on AML Reform: Artificial Intelligence, Beneficial Ownership and Real Estate from Ballard Spahr. “…(T)he OCC believes that ‘[n]ew technologies such as artificial intelligence (AI) and machine learning offer banks opportunities to better manage their costs and increase the ability of their monitoring systems to identify suspicious activity, while reducing the number of false positive alerts and investigations’.” This in-depth post includes this link to Part One.

 

  • Sameer Gokhale of Oblon, McClelland asks is the Pendulum Swinging Back In AI Direction? “(M)ost inventions in AI will not be directed to a magical robot or the self-driving car. Instead, a lot of inventions are directed to the building blocks of AI, such as deep learning and machine learning algorithms along with data collection techniques which are vital to train the AI software.” “If the USPTO director can guide the examining corp to take a patent owner-friendly approach toward inventive algorithms related to AI, then it will help swing the pendulum of patentable subject matter toward a place that is in harmony with the current state of technology.” Article from Intellectual Property Magazine here.

 

  • Suebsiri Taweepon and Pimpisa Ardborirak of Tilleke Gibbins postedChallenges of Future Intellectual Property Issues for Artificial Intelligence. “…(W)ould the software developer(s) of an AI be entitled to the work created by that AI? And if the user of the AI continually inputs new sources of information for the AI to learn, resulting in newly created IP, would the user be entitled to own the created IP?”

 

  • This interesting post warns of possible negative unintended consequences of cheap “lawtech” A2J such as, “the silencing of #MeToo activists with an avalanche of libel lawsuits; honest tradesmen ripped off by an automatic lawsuit over every invoice; online bullies spinning up endless court cases against their enemies in order to intimidate them into submission; patent trolls automating their hunt for genuinely innovative companies to exploit”.”

 

  • Meanwhile, here’s more progress on the A2J front: Chatbot to help renters released today. (From New Zealand.)

 

  • Peter Krakaur of UnitedLex posted this overview of legal technologies. It includes a nice summary chart. Planning Your Next Legal IT Strategy Discussion: A Service Delivery Framework (Part I).

 

  • Columbia University’s AI Business Course Studies Legal Tech Startup (Evisort). “…(L)egal technology offers a prime example of using tech experts and industry experts—in this case lawyers—in the development of a needed business tool.” Coverage here.

 

From Artificial Lawyer:

– “Big Tech company, Microsoft, is to broaden the appeal of its NLP and machine learning tools for doc review as part of a project to bring its Azure Cognitive Service capabilities into the Power BI platform for business level analysis and data visualisations. The service will open for public preview from March 2019.” Post here.

HighQ Integrates With Legal AI Co. LEVERTON + Launches V. 5.0. Post here.

– “Smart contract pioneer, OpenLaw, and oracle platform Rhombus, have joined forces to build derivatives smart contracts, as part of a project to see if their tech can be used in the $500 trillion market for handling derivatives trades.” Post here.

Relativity Develops ‘Pre-Crime’ Abilities With Trace App at ING Bank. Post here.

 

  • Press release from Littler: Littler Hosts Roundtable of Industry Leaders to Discuss Impact of Automation Technologies. It’s an interesting summary of the event and includes a link to Littler’s recent TIDE (Technology-Induced Displacement of Employees) report. Oh heck, why not just include that link here and save you a click?

 

  • Press releaseElevate Acquires Sumati, Expanding Capabilities and Scale in Contract Lifecycle Management Support.

 

  • Press releaseXDD Acquires Leading AI Automation Software Company, Esquify, Further Optimizing the Company’s Managed Review Service Offering.

 

  • Press release: Successfully Migrates 10 Terabytes of Litigation Data to Casepoint eDiscovery Cloud.

 

More prognostications:

– Legal Technology – the future of legal services from Dan Bindman. Post here.

– Moving Beyond Smart Contracts: What Are The Next Generations Of Blockchain Use Cases? Post here.

– 2019 will be the year of artificial intelligence. Post here from Damien Willis.

– This, from Information AgeArtificial intelligence for the lawyer – transforming the legal industry.

– 5 Artificial Intelligence Trends To Watch Out For In 2019. This is a bit technical, but interesting.

– Tech predictions from The Economist in 2019: Facial recognition to AI regulation. “…Major League Baseball will start allowing fans to validate their tickets and enter stadiums via a scan of their face, rather than a paper stub. Singapore’s newest megamall will use the technology to track shoppers and recommend deals to them. Tokyo will spend the year installing facial-recognition systems in preparation for the Olympics in 2020, when it will use the technology to make sure that only authorised persons enter secure areas.” More here.

– If those forecasts aren’t enough for you, how about: 120 AI Predictions For 2019. I did not verify the count or even read them all, but 120 feels about right. Here they are.

 

Blockchain

  • This, from Scott H. Kimpel of Hunton. Blockchain Legal Source: Mining Cryptocurrency Under Federal Election Law. “The acting general counsel of the Federal Election Commission (“FEC”) recently published for public comment a draft advisory opinion under the Federal Election Campaign Act and related FEC regulations regarding mining cryptocurrencies for the benefit of political committees.”

 

  • Seven EU States Sign Declaration to Promote Blockchain Use. “…(T)he document cites “education, transport, mobility, shipping, Land Registry, customs, company registry, and healthcare” as services which can be “transformed” by this technology. The group also cites blockchain tech’s use for protecting citizens’ privacy and making bureaucratic procedures more efficient.” More here.

 

 

  • James Marshall, Deals Partner at PwC postedHow blockchain could upend M&A and other deals. “As a tamper-proof shared ledger that can automatically record and verify transactions, blockchain and distributed ledger technology (DLT) could vastly change how investors value, negotiate and execute deals.”

 

  • From Legal Theory Bookworm, this review of the recent book, Blockchain and the Law: The Rule of Code by Primavera De Filippi & Aaron Wright. “De Filippi and Wright welcome the new possibilities inherent in blockchains. But as Blockchain and the Law makes clear, the technology cannot be harnessed productively without new rules and new approaches to legal thinking.”

  • Here’s a good summary of tools from This Tech Can Turn the Tables in Litigation. “If you can eliminate some of the chance from litigation, if you can bring a higher level of certainty to litigation, why wouldn’t you? Indeed, you might even ask yourself, ‘Is it malpractice not to use analytics?‘”

 

  • Also from Bob: LawNext Episode 21: Blockchain, Smart Contracts and the Future of Law, with Casey Kuhlman of Monax. It’s a 45-minute interview sponsored by MyCase.

 

  • In this short post (Blockchain: Resources To Get On Top Of This Technology), Olga V. Mack offers several good tips for learning about blockchain. “What follows is a compilation of resources in no particular order that I and many other professionals have found useful.”

 

  • This, from EY: Companies ready for leases standard, but only with help, finds EY 2018 Lease Accounting Change Survey. “Automation is a long-term goal, with artificial intelligence (AI) playing an important role. More than 80% of companies are working toward designing a long-term automated solution, with only 5% saying they will use a manual, spreadsheet-based approach long term. Interestingly, more than half (51%) who are implementing automation say the solution includes using AI to identify and abstract lease data.”

 

  • The International Association of Privacy Professionals (IAPP) publishedShould we create a certification for AI ethics? “Matthew Stender, a Berlin-based tech ethicist and researcher: ‘…(C)ertainly in the U.S. — regulators’ hands were tied by trade secret laws and the ‘speech is code’ model. ‘For me, the idea of voluntary technical standards provide an interesting alternative to national legislation,” he said.'”

 

  • From Littler: Thought Leaders Predict AI’s Impact on the Workforce. “The consensus of Roundtable participants is that while automation is likely to displace workers in many occupations, it also will spur enormous demand for workers in both existing fields and in new occupations that technological change will generate.” The seven-page report is here.

 

  • Lord Chief backs “smartphone justice” but not so keen on AI. “There is no reason why our online courts and justice systems cannot deliver effective and accessible justice direct to the citizen. Both the Lord Chancellor and I (Lord Chief Justice Burnett) are in agreement on this.” “AI, however, is one area where, while much has been done, we are in the foothills, rather than the uplands, of understanding how and where it can properly be utilised.” More here.

 

  • From Emilie Ducorps-Prouvost of Soulier AvocatsLabor Law And The Challenges Of Artificial Intelligence: 3rd Part Of A Trilogy. “Labor and employment law should be used as a legal tool to steer the obvious changes brought by AI in the workplace.” The article and links to first two parts here.

 

  • Detroit Legal News published: Artificial intelligence in health care: What you need to know. The article includes specific applications and general discussion. And: “It’s all about the data“. “There’s no question that AI can process and analyze information at a rate far beyond any human capacity, but human intellect still remains a key component-not just in further training the algorithm or interpreting the information that’s presented, but in making the connections as how to best use that information in the future.”

 

  • Giangiacomo Olivi of Dentons postedArtificial Intelligence meets AdTech: digital disruption, data privacy and future perspectives. “AI will boost AdTech one-step further and introduce scenarios that will challenge current legal and industry standards, while requesting new and more dynamic approaches to online advertising. So, how is this going to happen and at what future perspectives should we expect?”

 

  • Here’s an interesting essay from How AI and analytics made the billable hour redundant. “If predictive analytics and AI kill off the billable hour for good, they may also prove to be the saviour of a profession that has been under pressure to change for years.”

 

  • Cadwalader postedLabCFTC Explains Functionality And Risks Of Smart Contract Technology, but did not include a link to the report, which I found here. It’s a pretty deep dive (32 pages).

 

  • Tiffany Quach and Stéphanie Martinier of Proskauer postedIs Blockchain Technology Compatible With GDPR? French Data Protection Regulator Provides Guidance. “To address tensions between blockchain technology and the GDPR, Commission Nationale de l’Informatique et des Libertés (CNIL), the French data protection regulator, published an initial report analyzing certain fundamental questions regarding the interaction between blockchain technology and the GDPR’s requirements (the “Report”). The Report was the first guidance issued by a European data protection regulator on this topic.”
  • It seems the FCC plans to have a rather light touch when it comes to regulating AI. “FCC chair Ajit Pai signaled that when it comes to artificial intelligence and machine learning, the FCC was smart enough to exercise regulatory humility, particularly given that the technology could revolutionize communications, but registered concern about AI potentially perpetuating biases in decision-making.” More here.

 

  • Here’s more coverage of LexisNexis’ new Context tool: New Data Analytics Tool Knows Every Federal Judge’s Favorite Cases. “This kind of data—for every federal judge and for 100 different types of motions—is now available to litigators at the click of a mouse through a launch on Thursday of LexisNexis Context, the result of the legal giant’s purchase of Ravel Law in mid-2017. Context will be available as an added purchase in the Lexis Advance suite.” Bob Ambrogi’s take is here.

 

  • Hogan Lovells has been tracing the California Consumer Privacy Act, and here‘s their latest post (with links to their others): California Consumer Privacy Act: The Challenge Ahead – The Impact of the CCPA on Data-Driven Marketing and Business Models. “The breadth of personal information covered by the CCPA, going beyond what is typically covered by U.S. privacy laws, will complicate compliance and business operations.”

 

  • 2019 may be the year for something GDPR-ish in the US: Federal Data Privacy Legislation Is Likely Next Year, Tech Lawyers Say. “Why now? More companies appear to be growing concerned with the idea of having a jumble of federal and state data privacy and cybersecurity laws, especially with the passage of the California Consumer Privacy Act of 2018 in June of this year. However, the California law will not fully take effect until 2020. There are also several different laws governing data privacy by sectors, such as the Health Insurance Portability and Accountability Act and The Fair Credit Reporting Act.” Much more from LAW.com here.

 

  • From AshurstA more reasonable approach to internal investigations. “Even investigations by authorities (known as ‘dawn raids’) are primarily carried out using e-discovery today. The authorities first request access to all the company’s servers, demand the surrender of digital storage media and, if applicable, request access to any cloud infrastructure. These can accurately be referred to as ‘e-raids’.”

 

  • Starting Today, Columbia’s Professor Daniel Guetta Uses Evisort to Teach Text Mining in New Artificial Intelligence MBA Course. “Columbia Business School data scientist Professor Daniel Guetta, Director of the Business Analytics Initiative at Columbia Business School and Columbia Engineering, has published a case study about Evisort, an Artificial Intelligence (AI)-enhanced document management and data analytics solution for contracts developed by Harvard Law and MIT researchers” Story here.

 

  • It has been too long since I have written, “it’s all about the data“, so here’s a reminder from Pepper Hamilton’s Joseph C. Guagliardo: “What’s critical to a lot of these machine learning and AI devices is the information that’s given to the algorithms to make them smarter and train them ….” “It’s not just about the algorithms, it’s about the data that’s feeding them.”

 

  • Here’s Sheppard Mullins’ Reid WhittenJ. Scott MaberryCurtis Dombek and Lisa Mays‘ take on the new US tech export controls: The Little Regulation That Will Make a Big Change in How You Do Business: Department of Commerce to Establish New Export Controls on Emerging Technologies. (<– That’s just the title, not the whole article.) “Affected sectors include biotech, computing, artificial intelligence, positioning and navigation, data analytics, additive manufacturing, robotics, brain-machine interface, advanced materials, and surveillance.”

 

  • This, from MoFo: Counsel’s Guide to AI in the Board Room. “…(D)irectors and their counsel should look to take advantage of the best  technology and information available to them in order to drive shareholder value. In times of change, remember to stick to the fundamentals and help boards, as their counsel, make fully informed, good-faith decisions.”

 

  • From SeyfarthWave Of The Future: The Effect Of AI And Robotics On Commercial Real Estate. Several specific applications are discussed in some depth.

 

  • And Littler posted this podcastEmbrace or Rage Against the Machine? The HR Costs and Benefits of Automation. “The use of automation, artificial intelligence, and robotics to make or provide products and services is no longer uncommon. But what about the use of these tools in making hiring and other employment decisions?”

 

  • This, from MadgwicksDudley KnellerLegal frontiers: From AI to ethics. “Positive results have already been achieved by algorithms within a confined remit but ongoing supervision of data handling practices as well as the application of AI technology is required.”

 

  • There’s an interesting bit of research coming from Oxford University. “…(T)o look at using artificial intelligence to increase processing times, improve customer engagement and unlock new potential in accountancy, legal and insurance services.” “Unlocking the Potential of AI for English Law (Oxford) will look at existing challenges to implementing AI in legal services and how to unlock its potential for good. The project will bring academics, lawyers, businesses and programmers together to develop the skills, training and codes of practice to deliver these benefits. The team will gather best practices across the world, outline data challenges, identify where and how AI can legitimately resolve disputes and map the frontier of AI in legal reasoning.” More here and here.

 

  • This, from Legal Futures: “… Lord Chancellor (David Gauke) yesterday hailed the impact of alternative business structures in driving competition and fostering innovation in the legal market. (And) also praised the way that law firms are embracing technology to maintain the UK’s international position.” “We have also seen PwC’s UK legal practice reach a headcount of 320 and generate revenue of £60m. That puts it just outside the UK’s top 50 law firms in its own right.”

 

  • Oh Lordy. It’s only the first business day of December and the onslaught of 2019 AI prognostications has already begun. To say you time, I’ll try to bunch them, and only include those I find really interesting. Such as:

– Recruitment trends in tech for 2019: Machine learning, AI and predictive analytics. There’s some interesting stuff re HR here.

– If you’re at all interested in Marketing, I expect you’ll find these interesting: Annual Predictions For Marketers: From AI To Politics To Augmented Intelligence To Orchestration.

These seem well-reasoned: 5 Important Artificial Intelligence Predictions (For 2019) Everyone Should Read. :…(W)hen it comes to doctors and lawyers, AI service providers have made concerted effort to present their technology as something which can work alongside human professionals, assisting them with repetitive tasks while leaving the “final say” to them.”

 

From Artificial Lawyer:

– Clause Creates Smart Contract Template For IoT Devices. Post here.

– ‘Lawyers, Be Truly Curious About Legal Tech’ – Kerry Westland, Addleshaw Goddard. Post here.

 

Blockchain

  • Amazon’s AWS has launched a new service that “is going to make it much easier for you to use the two most popular blockchain frameworks, said AWS CEO Andy Jassy. He noted that companies tend to use Hyperledger Fabric when they know the number of members in their blockchain network and want robust private operations and capabilities. AWS promises that the service will scale to thousands of applications and will allow users to run millions of transactions (though the company didn’t say with what kind of latency).” Coverage here, here, here and here.

 

  • Blockchain Smart Contracts Subject to Financial Laws, Says CFTC Primer. “One of the top U.S. financial regulators, the Commodity Futures Trading Commission (CFTC), has released its second guide to understanding smart contracts, with a reminder that the technology is covered under financial rules.” Details here.

 

  • Ohio ‘rolls out the red carpet’ for blockchain businesses by accepting bitcoin this tax season. “As of Monday, Ohio became the first state where business can pay their taxes in cryptocurrency. (Ohio’s state treasurer Josh Mandel) said the decision was twofold: It increases “options and ease” for taxpayers, and it opens the door to software engineers and tech start-ups.” Coverage from CNBC here.
  • O’Melveny is getting a lot of coverage of its recent announcement that it will use neuroscience-based games in its recruitment process. See stories here, here, here and here.

 

  • This post was prepared by Kurt Watkins of Contextum and Matthew Savare of Lowenstein Sandler and published by the ACC via Lexology: The Rise of Artificial Intelligence and its Impact on General Counsel. It’s a solid deep dive and includes specific advice for GCs. “The technological advancement of AI and its concomitant increased adoption in the legal profession cannot be stopped. For many years, lawyers believed that AI would not impact them or their profession. Think again. In order to stay ahead of the proverbial curve, general counsel need to understand this transformation, adjust their ways of thinking….”

 

  • Seyfarth’s Hannah L. JacksonRaymond Tran and Theodore E. Woodward postedWave Of The Future: The Effect Of AI And Robotics On Commercial Real Estate. It’s a solid, rather in-depth look. “Advancements in AI robotics and integration with the IoT have the potential to change the way that commercial properties are owned, leased, managed and operated in the future.”

 

  • The Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth recently published the first report in its project on Artificial Intelligence (“AI”) and Data Protection: Delivering Sustainable AI Accountability in Practice. The report, entitled “Artificial Intelligence and Data Protection in Tension” aims to describe in clear, understandable terms: what AI is and how it is being used all around us today; the role that personal data plays in the development, deployment and oversight of AI; and the opportunities and challenges presented by AI to data protection laws and norms.” Overview here.

 

  • This, from DLA Piper: International Trade Alert. “The Bureau of Industry and Security (BIS) issued an Advance Notice of Proposed Rulemaking (ANPRM) on November 19, 2018 requesting public comment on identifying ’emerging technology.’ Under the Export Control Reform Act of 2018 (ECRA), which was signed into law on August 13, 2018, the Department of Commerce is authorized to establish export controls on emerging and foundational technologies under the framework of the Commerce Control List (CCL). In the ANPRM, BIS indicated that it will issue a separate ANPRM for ‘foundational technology’.”

 

  • The Alliott Group (Maciej Kokotposted: An Alternative Perspective On Use Of Artificial Intelligence In Professional Firms. “This article, written by Alliott Group Polish accounting and law firm member ALTO, provides an alternative perspective on AI’s role in the mid-size firm. Authors Maciej Kokot and Wojciech Kokot propose we question the preconceptions and fears we have surrounding AI, and instead invite accountants and lawyers to familiarise themselves with its capabilities. From automating rudimentary accounting services to streamlining first-line support using chatbots, this article outlines why we have every reason to feel positively about the rise of AI.”

 

  • This post is from Switzerland’s Bär & Karrer‘s Andrew M. GarbarskiThe Sealing Of Evidence Under Swiss Criminal Procedure Law. “The fast-changing technical landscape and the potentially endless capabilities of artificial intelligence may ultimately offer better solutions for judicial authorities and practitioners alike. However, in the meantime, both must turn towards the case law of the SFSC to find practical ways of dealing with the increasing complexity of unsealing procedures.”

 

  • If you’re interested in how the Skunkworks approach to innovation adoption can work at a law firm (I am!), check out this podcast interview with Orrick’s Chair, Mitch Zullie.

 

  • Here’s a rather academic piece from the University of Toronto — Faculty of Law’s Benjamin Alarie, Anthony Niblett and Albert YoonHow Artificial Intelligence Will Affect the Practice of Law. “In the short run, we can expect greater legal transparency, more efficient dispute resolution, improved access to justice, and new challenges to the traditional organization of private law firms delivering legal services on a billable hour basis through a leveraged partner-associate model.” “In the longer term, it is difficult to predict the impact of artificially intelligent tools will be, as lawyers incorporate them into their practice and expand their range of services on behalf of clients.”

 

  • “A subsidiary of the German arm of Clifford Chance has entered into a partnership to advance the development of an AI platform. Clifford Chance Tech GmbH and German firm EVANA will work together to enhance EVANA’s platform for corporate law and M&A transactions.” More here, here and here.

 

  • In this post, Law Society Council member, addresses the question, “…if you are going to receive advice or even representation from either a solicitor or a robot with artificial intelligence, should the criteria for the product be the same in each case?” Interesting read.

 

  • Dentons’ Todd D. DaubertPeter G. FeldmanJason M. Silverman and Michael E. Zolandz posted: BIS Begins Process For Export Controls Of “Emerging And Foundational” Technologies: What Tech Companies Need To Know. “On November 19, the Commerce Department’s Bureau of Industry and Security (BIS), which controls the export of sensitive dual-use and less-sensitive military goods and technology, took an important preliminary step in establishing the review and control process required under ECRA. The agency published an advance notice of proposed rulemaking (ANPRM), soliciting comments from the public on specific matters related to identifying and controlling emerging and foundational technologies.” More here.

 

  • Also from Dentons (this time, Eric J. TanenblattCrawford Schneider and James A. Richardson): Autonomous Vehicles Start Act Legislative Update. “Republicans are eager to finally advance a light-touch autonomous vehicle regulatory framework after the proposal has languished for more than a year in committee over cyber and safety concerns.”

 

  • Here’s part 6 of Mintz’ Strategies To Unlock AI’s Potential In Healthcare, Commercialization Of AI Tools In Healthcare – The Challenge Of Securing Adequate Data Rights.

 

  • A blog on behalf of CILEx Regulation by Eve Dullabh, managing director of the Law Training Centre in Kent: Reality versus the robot lawyers. “…(L)egal training will be required to adapt accordingly to provide the skills to the modern lawyer in order to remain indispensable in the era of AI technology. Cyber-security training, management of risk training and coding will, inevitably, become part of every lawyer’s legal training and, already, some of the top firms in the country have recognised this and instructed that all their trainees undertake coding training. The future is now and embracing the evolution of the new legal era will prepare us for the things to come.”

 

  • Steven D. Lofchie of Cadwalader postedFRB Governor Brainard Focuses On Risks And Supervisory Approaches Associated With AI. “Federal Reserve Board (“FRB”) Governor Lael Brainard urged firms to be mindful of risks associated with artificial intelligence (‘AI’) innovation and advised regulators to remain diligent in the quest to understand and regulate the use of AI by supervised firms.”

 

  • Also from Steven D. Lofchie, FDIC Chair McWilliams Urges More Collaboration On FinTech. “In remarks delivered at the FinTech and the New Financial Landscape Conference, Ms. McWilliams underscored that innovation is expanding bank access to more customers, and that new technology has enhanced ‘customer experience, [lowered] transaction costs, and increase[d] credit availability’.”

 

  • WilmerHale‘s Timothy Syrett and Natalie R. Pous prepared this articleThe Developing Landscape Of Internet Of Things Standards For Cars, “the first in a series of five articles written by WilmerHale discussing how the emergence of IoT technologies will impact the automotive industry. “The Internet of Things (IoT) refers to the connection of a multitude of devices through the Internet to collect and exchange data. One area of particular promise for the IoT is cars. Exchanges of data between cars on a street, between cars and pedestrians crossing the street, between cars and traffic lights on the street, and between cars and the Internet could improve safety, reduce traffic, save fuel, and make for a more entertaining drive.”

 

  • And here‘s a closely related article, also from Wilmer (this time by Christian DuvernoyFrédéric LouisDr. Martin BraunAnne ValleryItsiq Benizri and Naboth van den Broek): The European Commission Launches A Public Consultation On Connected And Automated Vehicles. “The ambition of the European Union (“EU”) is to become a world leader in the deployment of connected and automated mobility. The EC believes that driverless mobility and connectivity will help bring down the number of road fatalities and reduce harmful emissions and congestion. In this context, the EC published a Communication in which it identified the actions it would take to guide the sector and EU countries to reach its objectives. One of these actions is to issue a Recommendation to complement the regulatory framework for connected and automated mobility and to help EU countries achieve a coordinated approach in this respect.”

 

 

 

  • From Jones DayDriverless, Networked Vehicles on the Rise, French Liability Regulations Lag Behind. “The Situation: Autonomous cars with incorporated artificial intelligence (“AI”) are now a reality whereas French regulations have yet to adjust. The Issue: The phenomenon of new autonomous cars using AI gives rise to questions about how product liability principles will apply and adapt thereto. Looking Ahead: Carmakers should already be considering what liability risks could be created by incorporating AI in autonomous cars and how to mitigate such risks.”

 

  • Andy Neill of HighQ postedWhat’s artificial about ethical AI in the law? Everything. “Lawyers are trained and have studied ethics. They must be utilised to succeed in creating ethical AI programs.” It’s an interesting read.

 

  • Here’s an important and useful study conducted by Dentons: Dentons submits results of research into the development of global legislation in robotics, AI and cyberphysical systems. “Dentons global law firm has carried out unique, large-scale research of the development of law and legislation on robotics, artificial intelligence and cyberphysical systems. The research was commissioned by the Competency Center for Statutory Regulation of the Digital Economy, which operates at the Skolkovo Foundation. It is the first such research done in Russia.”

 

  • This post is from Hungary’s KCG Partners Law FirmFree Flow Of Non-Personal Data In The European Union. “According to the communication of the European Parliament, the Council of the EU will adopt the regulation in the coming weeks, before it will enter into force by the end of the year. The Member States will have 6 months to apply the new rules from the date of the formal adoption of the regulation.”

 

  • Here’s a taste of what to expect at the “Emerging Legal Departments: Legal Tech 101” roundtable (Evolve the Law, Above the Law’s Legal Innovation Center at Logikcull’s San Francisco headquarters) on December 5. Monica Zent and Stephanie Corey will lead the discussion.

 

  • From José Santacroce of Moeller IP Advisors we have: The European Patent Office (EPO) Publishes New Guidelines On Computer-Implemented Inventions (CII). “…(T)he new EPO CII Guidelines include for the first time new sections on Artificial Intelligence (AI) and Machine Learning (ML), and on Simulation, design or modelling.” Post here.

 

  • Philip Cupitt of Marks & Clerk posted: Artificial Intelligence: Is Your Business Ready? “Our own research at Marks & Clerk reveals that more than 78,000 patent applications relating to AI were filed around the world in 2017. On current trends, we’ll see around 86,000 such patent applications filed in 2018, which represents almost a twofold increase in the past decade.”

 

  • Government invests to research how AI can improve the law was posted on Legal Futures by Dan Bindman, “The government is funding research into the potential for artificial intelligence (AI) to improve the legal system, with a warning that, if the technology is mishandled, it could have dire consequences. The Department for Business, Energy and Industrial Strategy (BEIS) will fund three research projects into aspects of AI costing £3m, of which ‘Unlocking the potential of AI for law’ is one.”

 

  • HBR Consulting postedLaw firms must act with urgency to keep pace with law department analytics maturity. “…(L)aw departments are gathering, centralizing and sharing more data than ever, and many law firms are lagging behind.”

 

  • Law schools are often (and often justifiably) accused of not keeping pace with innovations in the business of law. But here are some noteworthy exceptions: You Think Legal Education Can’t Change? 8 Innovative Ideas from Law Schools.

 

 

From Artificial Lawyer:

– Few GCs Have ‘Digital Transformation Skills’ – LawGeex Report. Link.

– Nordic Law Firms Go All-In For Legal AI, (Especially Luminance), But Why? Link.

– UK Gov + MoJ Back Major Research Project to Boost Legal AI Use. Link.

– Relativity Partner QDiscovery Buys Evidox in eDiscovery Consolidation Move. Link.

 

Blockchain

 

  • Smart Contracts May Have Weaknesses. This Tool Helps Find Them. “ released a blockchain security monitoring service that includes a tool by ConsenSys Diligence allowing users to scan smart contracts for vulnerabilities.” Story here.

 

  • Pinsent Masons postedMEPs call for business GDPR ‘guarantee’ on using blockchain. “Businesses should not begin using blockchain technology to process personal data until they can ‘guarantee compliance’ with EU data protection laws, a committee of MEPs has said.”

 

 

  • This, from Sheppard Mullin: United States: The Hammer Falls On The First Major Blockchain-Based Art Auction. “Christie’s made history again last night during its evening sale, An American Place: The Barney A. Ebsworth Collection, at 20 Rockefeller Center in New York. This time, the history was not in the form of a record-setting sale (though the sale brought in $317.8 million), but as the first major art auction to be recorded by distributed ledger technology.”

 

 

  • Here’s a blockchain milestone: “Abu Dhabi-headquartered Al Hilal Bank has carried a blockchain-based transaction for an Islamic bond worth $500 million. The bank, an investment arm of the Abu Dhabi government, announced Monday that it settled the Islamic, shariah-compliant bond, or sukuk, worth $500 million on the secondary market, using blockchain tech.”

 

  • And here’s another: Real Estate on the Blockchain: $20 Million Sale ‘. “In the first offering of its kind, U.S. investors can now acquire a piece of South Carolina real estate in the form of blockchain tokens. The tokens represent ownership in a luxury student residence called The Hub … which is located near the University of South Carolina in the state’s capital.”

 

  • This is an interesting article from the December issue of the ABA JournalWhat do AI, blockchain and GDPR mean for cybersecurity? “…(W)e close this series by looking around the bend to understand how major emerging technologies will affect cybersecurity in the coming years. While experts disagree when technologies such as artificial intelligence and blockchain will play a larger role in cybersecurity and data protection, there is broad agreement that their roles will be pivotal. This could, in turn, create new solutions, risks and regulatory headaches.”
  • Some recent posts report some variation of: “Legal Industry in Last Place in AI, Machine Learning Adoption, According to RELX Survey“. I can’t find the study’s detailed results or methodology, but from what I see best case accuracy is +/-8%, so all 6 industries are probably in a statistical tie. Here’s an example of such reporting. Let the reader beware.

 

  • Yanbin Xu of Finnegan postedStrategies For Blockchain Patent Applications. (I’d say more, but the article is only available in Chinese.)

 

  • Yalonda T. Howze of Mintz posted (in English!): Strategies To Unlock AI’s Potential In Health Care, Part 5: Product Liability Prevention For AI Product Designers—And Their Lawyers. “From my experience in working with outside counsel, in-house counsel, designers and engineers, it has become apparent that safer product design and the minimization of product liability exposure in the AI space requires a collaborative, systematic and iterative protocol. Ultimately, this approach helps to better protect the user, the brand, and the company.”

 

  • Yesterday I had a post from Wales, so today, here’s one from Scotland: In 2050: Education – Equipping Our Learners For The Future, from Neil Maclean of Shepherd and Wedderburn. “As part of Shepherd and Wedderburn’s 250th anniversary, we commissioned the Fraser of Allander Institute to undertake a research project to identify how Scotland might best position itself for the future. The initial scene-setter report can be found here.”

 

  • This is a very deep dive by Fichte & Co.: Demystifying the Financial Regulatory Landscape in the UAE. “The areas that Fintech Hive encourages include big data analytics & protective modeling, robo advisors, biometric & digital identification, the blockchain, P2P & crowdfunding, cybersecurity, artificial intelligence & machine learning, InsurTech, Islamic fintech and RegTech.”

 

  • Meanwhile in India: Redesign ICAI (Institute of Chartered Accountants of India) For The Contemporary World. “PwC and Deloitte are respectively the sixth and seventh largest legal services providers in the world. Accounting firms have an edge in using artificial intelligence and machine learning. The committee’s proposal to allow MDPs will enable audit firms to provide integrated services. Safeguards are necessary to maintain independence.”

 

  • Marine Giral and Herbert Smith’s Shaun McVicar penned: The blockchain revolution and what it means for pharma. “With the development of data driven artificial intelligence, increasingly complex decision could be automated, and implemented without delay. Blockchain transactions are immutable, which makes it virtually impossible to alter or selectively report clinical trial results and could ensure greater transparency and trust in reported outcomes.” There’s quite a lot about blockchain in the article.

 

  • Orrick’s Daniel Nathan and Jorge Pesok postedA Foreboding View of Smart Contract Developer Liability. “On October 16, 2018, Commissioner Brian Quintenz of the Commodity Futures Trading Commission explained his belief that smart contract developers can be held liable for aiding and abetting CFTC rule violations if it was reasonably foreseeable that U.S. persons could use the smart contract they created to violate CFTC rules.” ” In his speech, Commissioner Quintenz provided valuable insight into how one regulator is thinking about applying existing laws to this new market.”

 

  • From the ‘Who’d a Thunk It’ department, Bob Ambrogi went to Moscow and discovered legal tech startups! Dispatch From Russia: Legal Tech Startups Emerge, But Adoption Lags. “Cyrillic doesn’t do AI any favors.” That’s just one footnote to Bob’s very interesting story here.

 

  • For this small, informal survey from the UK, “Jomati interviewed 29 innovation heads from 24 practices and ‘explored the innovation and legal tech strategies of dozens more law firms’.” “While some pioneering law firms had decided firmly, for instance, on adopting artificial intelligence (AI) technology, others were waiting until its cost advantages over outsourcing were more certain before taking the plunge.”

 

  • The Baker McKenzie report Ghosts in the Machine: Revisited I reported last week is getting quite a few mentions in legal and financial publications. Here’s an example. And here.

 

 

  • A couple of months ago, Artificial Lawyer covered the blockchain-based contract software by Chainlink. Now even the MIT Technology Review is taking notice: Blockchain smart contracts are finally good for something in the real world. “A startup says it has tackled a long-standing problem that has kept smart contracts from responding to actual events.” “Using cryptography, the Chainlink service provides proof on the blockchain that the data is in fact the information it committed to delivering. Customers can pay for different levels of decentralization, and the nodes can make money in return for submitting data. Nazarov says the combination of Chainlink’s software with the Town Crier hardware system is the first ‘provably secure, decentralized oracle network.'” Story here.

 

  • This is pretty cool: “The Open Data Institute (ODI), co-founded by the inventor of the web Sir Tim Berners-Lee, is to launch two of the first ever government-backed Data Trusts in the world, with the purpose of training AI systems underpinned by a specific legal structure.” “Data Trusts, which are legally constructed entities, are seen as the answer and help form a regulated bridge between the collected data and the AI companies (or other tech companies such as smart contract developers), while retaining public trust.” More from Artificial Lawyer here.

 

  • Also from the UK  via Computer WeeklyPutting the UK at the forefront of ethics and innovation in AI and data. “Stellar British firms are using artificial intelligence (AI) to help defend against cyber attacks and law firms are adopting the technology to help lawyers do legal searches and draft documentation. But we know the huge rise in the use of data-driven technology must be backed up by a strong ethical framework so it delivers the best for people.” This piece is by Jeremy Wright, Secretary of State for Digital, Culture, Media and Sport (aka, “Culture Secretary”).

 

  • Several firms have posted in the past couple of weeks about moves by various US Government agencies and departments to regulate or at least study AI and related topics. Here’s a sampling:

From GoodwinU.S. Government to Define ‘Emerging Technologies’, impacting CFIUS and Export Controls.

From Sheppard MullinThe Little Regulation That Will Make a Big Change in How You Do Business: Department of Commerce to Establish New Export Controls on Emerging Technologies.

–  From DechertNew Government Regulation of Emerging Technology.

From SkaddenUS Department of Commerce Solicits Comments Regarding Emerging Technologies That Are Essential to US National Security.

From LathamDeep Dive on Deep Learning: FTC Considers Artificial Intelligence.

From DLA PiperA New Chapter in Stress Testing. “While noting that emerging artificial intelligence technologies offer many actual and potential beneficial applications for banking, Fed Board Governor Lael Brainard said that financial services ‘firms should be continually vigilant for new issues in the rapidly evolving area of AI.'”

From Davis PolkNewsflash: FTC Hearings 5, 6 and 7 on Competition and Consumer Protection in the 21st Century.

From Holland & KnightFTC Kicks Off New Consumer Protection Hearings: Focuses On The Use Of Big Data And Artificial Intelligence.

– From Squire Patton BoggsDigital Health Update: Recent FDA Cyber Initiatives.

From CadwaladerFDIC Chair McWilliams Urges More Collaboration On FinTech.

 

  • I love this “back of the envelope” answer to “Is it AI?” from Karen Hao and the MIT Technology Review.

 

 

  • This half-hour podcast from MeDermott’s Week in Health Law series addresses AI & the Practice of Medicine. Five guests participate (Terry Dee, Jiayan Chen, Kate McDonald, Dale Van Demark, Eric Fish). Topics include where AI in medicine is headed, the need for regulation, privacy, liability, insurance and more. Sorry about the audio quality.

 

  • From Buckley Sandler, here’s a brief summary of Federal Reserve Governor Lael Brainard’s remarks at the 11/13 “Fintech and New Financial Landscape” conference. “Brainard’s prepared remarks emphasize the benefits and potential risks to bank safety and consumer protection that new AI applications pose.”

 

  • AI probe hears calls for ethics code. “Calls for a code of ethics, concerns about ‘Minority Report’-style crime prediction systems and a proposal for a new legal framework governing data ownership were among the evidence presented to the second public meeting of a landmark probe into the use of algorithms in the justice system. Appearing before the Technology and Law Policy Commission last week, The Hon. Mr. Justice Knowles called for the development of an ethical and legal framework for artificial intelligence. ‘AI is going to go deeper into people’s lives than many things have before,’ he told the commission chaired by Law Society president Christina Blacklaws. ‘It is imperative that we take the opportunity for law and ethics to travel with it.’” Here’s the brief summary from The Law Society Gazette.

 

  • Also from The Law Society GazetteEmbrace technology before your business model is threatened, Welsh firms told. This article summarizes “a seminar held by the National Assembly for Wales on the challenges presented by artificial intelligence and automation to legal services….”

 

  • Greenberg Traurig’s Paul Ferrillo posted this along with SDI Cyber’s George PlatsisQuantum Computing to Protect Data: Will You Wait and See or Be an Early Adopter? “So while we are still very much in the “zone of the unknown” a word of advice: if you’re a data-heavy organization and you plan to use and keep that data for years to come, you need to start thinking about new and alternate forms of encryption today.”

 

  • Here’s another thought piece from Mark A. CohenWhat Are Law Schools Training Students For? “Law is entering the age of the consumer and bidding adieu to the guild that enshrined lawyers and the myth of legal exceptionalism. That’s good news for prospective and existing legal consumers.” He addresses the challenges this will present for law schools. “These changes are affecting what it means to ‘think like a lawyer’ and, more importantly, what skills “legal” skills are required in today’s marketplace.”

 

 

  • From MobiHealthNews: Roundup: 12 healthcare algorithms cleared by the FDA. “As AI cements its role in healthcare, more and more intelligent software offerings are pursuing 510(k) and De Novo approvals.” Each of the 12 are summarized here.

 

  • Here (Geek comes of age), Joanna Goodman provides a good summary of this year’s Legal Geek event and the look into the future presented.

 

  • This story appeared in the New Hampshire Union LeaderIs Alexa’s speech protected? “The proper police procedures for searching a home or briefcase have been hammered out through decades of case law. But the question of how easy it should be for police to access the vast troves of data collected by the so-called internet of things — devices like Amazon’s Echo, Google’s Home, smart toasters, and other household objects equipped with sensors and connected to networks — is far from settled law.” Several credible sources are cited for opinion.

 

  • Ashley Deeks of the University of Virginia Law School penned: Artificial Intelligence and the Resort to Force. “How will AI change the way states make decisions about when to resort to force under international law? Will the use of AI improve or worsen those decisions? What should states take into account when determining how to use AI to conduct their jus ad bellum analyses?” This post is an overview of a larger article by Deeks and two colleagues.

 

  • Eamonn Moran of Kilpatrick Townsend & Stockton wrote: A Regulator’s Assessment of the Impact of Artificial Intelligence on Financial Services. The Federal Reserve Board’s “Fintech working group is working across the Federal Reserve System ‘to take a deliberate approach to understanding the potential implications of AI for financial services, particularly as they relate to our responsibilities.'” Here’s the full post.

 

  • Former Lehman lawyer predicts big role for AI post-Brexit. “A former senior counsel for Lehman Brothers investment bank and artificial intelligence (AI) technology pioneer has predicted AI will be crucial in helping companies alter thousands of contracts rapidly in the aftermath of Brexit. Beth Anisman, former global chief administrative officer in Lehman’s legal compliance and audit department, who subsequently co-founded an AI company, Apogee Legal – recently sold to e-discovery giant Seal Software – said disentangling contracts following Lehman’s collapse 10 years ago would have benefited from AI.” More here.

 

Blockchain

  • From BlockTribuneBlockchain, AI and the Legal System – Will Tech Lead The Law? “What happens when technologies, such as deep learning software and self-enforcement code, lead legal decisions? How can one ensure that next-generation legal technology systems are not unfairly biased against certain groups or individuals? And what skills will lawyers need to develop in order to properly assess the quality of justice that flows from data-driven decisions?” “Mireille Hildebrandt, professor at the law, science, technology and society research group at Vrije Universiteit Brussels in Belgium, will formulate and respond to during a five-year project to investigate the implications of what she calls ‘computational law’.” More here.

 

  • K&L Gates has posted Volume 38 of it’s Blockchain Energizer Energy Alert, this time summarizing three recent developments.

 

  • West Virginia Secretary of State Reports Successful Blockchain Voting in 2018 Midterm Elections. “…(I)n the 2018 midterm elections, 144 military personnel stationed overseas from 24 counties were able to cast their ballots on a mobile, blockchain-based platform called Voatz….” More here.
  • The data protection laws described in this post from Barnes & Thornburg are relevant to AI and blockchain. California’s New Data Protection Laws are Coming … but Colorado’s law is Already Here. “If you are a business that maintains, owns, or licenses computerized data that includes PI about Colorado residents, this new law applies to you.”

 

  • Speaking of personal data, Jones Day just publishedSingapore: PDPC Issues Discussion Paper On Artificial Intelligence And Personal Data. The discussion paper was published by Singapore’s Personal Data Protection Commission (“PDPC”) on June 4.

 

  • This short paper by Richard Suskind explains his idea of a mind-set called ‘outcome-thinking’. “Nor do taxpayers want tax accountants. They want their relevant financial information sent to the authorities in compliant form. … Patients don’t want psychotherapists. Roughly speaking, they want peace of mind. Litigants don’t want courts. They want their disputes resolved fairly and with finality.”

 

  • Word of this acquisition certainly spread fast — I’ve heard it mentioned twice already today. Elevate Acquires LexPredict, Expanding Capabilities in Artificial Intelligence and Data Science.

Meanwhile, Artificial Lawyer reports that, “Elevate has begun to refer to itself as a ‘law company’, rather than an ALSP (i.e. an Alternative Legal Services Provider).” President, John Croft said, “I think the only difference between the two (Elevate and a firm such as Slaughter & May) is that they are a law firm and we are a law company.” “We might provide different legal services, or we might deliver the same legal services in different ways (or we may deliver exactly the same legal services in exactly the same ways!), but we both provide legal services.”

 

  • Holland & Knight’s Norma Krayem just published her take on the FTC’s 7th consumer protection hearing, this one focused on the use of big data and AI. “(T)he FTC has indicated an ongoing interest in these issues as well. Certainly, cybersecurity and privacy issues underpin the concerns along with broader consumer protection issues with the use of Big Data, AI and other tools.” She outlines the subject the FTC will cover.

 

  • Trey Hanbury of Hogan Lovells published Why the Internet of Things and artificial intelligence will reinvent network connectivity. It’s a pretty deep dive into all sorts of connectivity and their relation to each other. He discussed infrastructure required, and the FCC’s role in all aspects.

 

  • Artificial Lawyer posted: “US law firm Orrick has today announced a new startup venture fund from which it will make investments in promising legal tech companies globally. The firm intends to create a strategic relationship with each portfolio company, they said, with Orrick typically acting as a beta customer, while making an investment in the range of $250,000. Orrick expects to be investing alongside well-known lead financial investors.”

 

  • Also from Artificial LawyerLegal AI Co. Diligen Integrates with NetDocuments. “The integration, available globally today, allows customers to ‘simply and securely summarise and analyse legal documents using Diligen’s AI and machine learning tools’ for matters such as contract review. The result means that documents can be analysed without leaving the secure NetDocuments ecosystem.”

 

 

 

  • I was intrigued by the title (Ghosts in the Machine: Revisited), enthralled by the infographics and impressed by the content. If you’re at all interested in the impact of AI on financial institutions, check out this beautiful report from Baker McKenzie. “…(I)t’s clear that institutions, from banks to insurers, asset managers to payment operators, are still feeling their way forward rather than racing towards an AI-enabled future.”

 

  • This, from the Business & Human Rights Resource Centre: Report highlights implications of growing use of artificial intelligence in legal practice for companies & lawyers. “The ‘AI in the Law’ panelists shared perspectives on how AI can benefit American and Chinese justice systems while mitigating its risks. Noting that technology has the potential to improve access to and the quality of justice, the speakers’ collective perspectives highlighted the need for artificial intelligence systems, in order to be trusted in the legal system, to be appropriately transparent, effective at meeting the specific purpose for which they are intended, competently operated, and accountable. It is important that AI systems (and their operators) deployed in support of the administration of justice and enforcement of the law remain under the ultimate supervision and control of legal practitioners and courts.”

 

  • The Oxford University Faculty of Law held this panel discussion: Technology and Finance – All about Blockchain? It is reported by Lukas Wagner is an Associate at Clyde & Co Düsseldorf who served as the President of the Oxford Fintech & SmartLaw Society in 2017-18.

 

  • Artificial Lawyer reports that “Bryan Cave Leighton Paisner (BCLP) has launched a new legal operations consultancy (Cantilever) that will help clients with issues such as process improvement, as well as tech choice and implementation, which would include assessing legal AI and automation needs.”

 

  • From Marc Elshof and Celine van Es of Dentons, Amsterdam: GDPR Update november 2018: Data protection impact assessments (DPIAs). “In this month’s GDPR Update we address an organization’s obligation to perform Data Protection Impact Assessments (DPIAs). A DPIA is a process designed to describe the processing, assess its necessity and proportionality, and help manage the risks to the rights and freedoms of individuals resulting from the processing of personal data by assessing them and determining measures to address them.”

 

  • “Global law firm Herbert Smith Freehills has advised Red Eléctrica Corporación on the world’s first syndicated loan using blockchain technology. The €150 million loan was engaged from three banks: BBVA, BNP Paribas and MUFG. Negotiations were conducted quickly over the platform developed by BBVA based on DLT (Distributed Ledger Technology).” Details from Herbert Smith here.

 

  • Andrew C. Hall of Hall, Lamb, Hall & Leto posted this recap of how law firms are (and soon will be) using AI. How Law Firms Can Benefit from Artificial Intelligence.

 

  • And here, from Zach Abramowitz (and Above the Law) is a much more in-depth look at a couple of those topics: Notes From A Legal Industry Binge (Part I).

 

  • Also from Above the Law: Moneyball For Law: Assessing lawyer “soft skills” that predict performance. The article addresses the question, “So how can you measure a legal professional’s fit for a role?”

 

  • If you have a subscription to World Intellectual Property Review, check out Finnegan’s Susan Tull’s post, Breathing life into AI.

 

  • Here’s Bob Ambroji’s take on The Pew Charitable Trusts’ entry into A2J: A Potentially Major Lifeline For Low-Income Legal Tech And A2J. Bob discusses how Pew will attack several specific A2J obstacles. “Pew’s express commitment to increase access to free online legal tools and to develop new platforms to help people interact with the courts is a lifeline the justice system badly needs.”

 

  • Marks&Clerk’s Graham McGlashan posted: UK: Intellectual Property’s Vital Role In Healthcare’s AI-Driven Future. “…(A)geing populations and complicated comorbidities continue to put pressure on healthcare budgets, … the potential rewards for those devising the innovations that overcome those challenges can be significant and protecting innovation in this space with intellectual property (IP) will be vital.”

 

  • This piece from Legal Futures (High Court judge: ethical and legal framework for AI “imperative”) discusses several views concerning AI regulation in the UK, one reason for which being, “…the impact of humans getting things wrong was ‘unlikely to be catastrophic’, while AI failures could have a much bigger impact.”

 

  • Former FTC commissioner and now partner at Covington, Terrell McSweeny postedCompetitive Edge: Antitrust enforcers need reinforcements to keep pace with algorithms, machine learning, and artificial intelligence. “The Federal Trade Commission should consider creating an independent and fully staffed office for the chief technologist or even a Bureau of Technology to enhance its required technological expertise and support its competition mission.”

 

  • Here’s a post from the ACC with recommendations from Stephanie Corey for in-house teams; these are also relevant to law firms: 5 Steps to Metrics: Building a Data-Driven Legal Department. “Don’t bite off more than you can chew!” she warns. “Start small, because going through all these steps is hard and it takes time.” She adds, “A few meaningful metrics is better than 25 metrics that are used for nothing. Change them if they need to change, and stop if they’re not being used. Metrics should evolve with your changing department, and at the end of the day will show all the great progress you and your team have made.”

 

  • Speaking of in-house legal departments, Altman Weil’s 2018 Chief Legal Officer Survey has been released. (Link to download here.) To me, the most interesting thing about it is that though “data” is mentioned dozens of times, “blockchain” and “artificial intelligence” never appear. Not once.

 

  • In this post from Above the Law, Thomson Reuters’ Joe Borstein interviews LegalMation founder James Lee. It’s a deep dive into the product’s genesis, and also discusses applications. “…LegalMation uses machine learning to automatically draft responsive litigation documents such as answers, responses, and interrogatories (which would take hours for a junior associate). For example, within moments of uploading your opposition’s complaint, you will have a competent draft response, which goes so far as to pull out key quotations from the complaint and question their basis in fact….”

 

  • In this post from Information Age (The legal implications of ‘creative’, artificial intelligent robots), Bertrand Liard of White & Case, “discusses artificial intelligence in the context of copyright, patents and existing IP rights.”

 

  • As I have reported several times in the past, “… the GLBC (was formed) to help in developing standards and policies that govern the use of blockchain technology in the business of law.” According to this release from K&L Gates, they’ve signed up too.

 

  • From Artificial Lawyer: Clause Joins Kaleido, the Platform that Makes Private Blockchains ‘Easy’. “…(I)f your firm has people who can get their heads around the mass of jargon and understand some of the technical aspects, then perhaps this could really speed things up and get people over the line into real, working uses of the tech, rather than just pilots.”