• From Jim Baker via Lawfare: Artificial Intelligence – A Counterintelligence Perspective: Part I. “…AI and the entire technological ecosystem in which it functions are highly valuable to private-sector organizations and nation-states. That means that nations will try to identify, steal, and corrupt or otherwise counteract the AI and related assets of others, and will use AI against each other in pursuit of their own national interests. And that presents the United States and its allies with a classic counterintelligence problem in a novel and high-stakes context….” This is a deep dive.

 

  • Lex Machina‘s Josh Becker prepared this look at the “…three primary categories of legal analytics that relate to legal workflows: litigation, regulatory compliance and transactions.”

 

  • To find out how AI is being used in the deal process and how proficient dealmakers need to be in order to successfully implement and evaluate the technology, Mergermarket asked three law firm partners, a professor at the Kellogg School of Management and a vendor, “What other kinds of machine learning or artificial intelligence applications are there to assist in the dealmaking process at present? What sorts of tools can you envision being created in the future?” Here’s what they said.

 

  • Lexology posted this blog post reporting what a few law firms are doing with AI and the benefits/impact they expect.

 

  • Press release: “CPA Global®, the Intellectual Property (IP) services and technology market leader, today announces the acquisition of Filing Analytics and Citation Eagle, two leading IP data and analytics software solutions, from Practice Insight, a wholly owned subsidiary of IPH Ltd.”

 

  • Here’s an interesting spin on the idea of a Smart Contract from William S. Veatch, a partner at Reed Smith, a “Data Contract.” “The essence of the Data Contract is that the terms of the contract are stored in a database at both the Clause Level and the Idea Level.”

And in this post, Artificial Lawyer interviews Reed Smith’s Bryon Bratcher to explore the firm’s tech strategy, including products they are offering to other law firms.

 

  • More about Smart Contracts. Artificial Lawyer reports that “Smart contract company, Clause, has partnered with a leading NFC (near field communication) company to link it to its own self-executing legal contracting technology. The move is in line with some of the earliest work of Clause, which related to picking up signals from the environment that could trigger elements of a smart contract.” Much more here.

 

  • Rob Galaski, Deloitte Global Banking & Capital Marketing Consulting leader, recently said: “AI is rapidly reshaping the attributes necessary to build a successful business in financial services. As AI drives operational efficiency, economies of scale alone will not sustain cost advantages. In the future, financial institutions will be built on scale of data and the ability to leverage that data. Increasingly bifurcated markets are already emerging where data sharing is critical to competitive success and first movers are positioned to distinguish themselves by delivering better advice, constant presence, and curated ecosystems. Firms that lag behind are finding that their old strengths may not keep them as competitive as they once were.” This seems to me completely relevant to law firms and their clients.

 

  • I have posted about the US’ tightening of controls around tech exports including AI. This post from MoFo reports that EU members are doing the same.

 

  • From Artificial Lawyer: LawDroid, has launched a new voice-activated functionality in a joint venture with US attorney Patrick Palace, that is designed to integrate exclusively with Clio’s practice management software. The new system will offer lawyers the ability to use voice commands to:
    • Dictate notes, schedule appointments, and create tasks
    • Have LawDroid Voice read out to you your schedule for the day
    • Populate data into Clio to eliminate data entry duplication.

 

  • Is AI The Great Equalizer For Small Law? According to this post in Above the Law from Casetext’s Jake Heller, “yes”. “…(T)he 85 percent of lawyers at smaller law firms have been adopting, using, and thriving on artificial intelligence technologies. And they have been using AI to level the playing field, diminishing or eliminating what were once the resource and staffing advantages at the bigger law firms.” It’s an interesting argument.

 

  • Holland & Knight postedFTC Announces Plans to Hold Roundtables on Consumer Protection and Competition Issues – Privacy, Data Security, Big Data and the Use of Artificial Intelligence Figure Prominently. “The FTC designated a total of 11 topic areas it will focus on and included a series of questions that it would like the public to comment on and participate in. Consumer privacy issues along with data security, the use of Big Data, artificial intelligence (AI) and predictive analytics figure prominently in the list of main topics the FTC has indicated it will review and analyze….”

 

  • Access to Justice: Artificial Lawyer reports that: German expert system, Ryter, is to build consumer-facing legal applications in a partnership with the Humboldt Consumer Law Clinic (HCLC) at the Humboldt University of Berlin. … The project will have a double benefit, in that students will get to know how to use an expert system such as Ryter, while also creating outward-facing applications that may be of use to consumers with legal needs and access to justice challenges.” More here.

 

Blockchain

 

  • In this sponsored post, Steptoe & Johnson PLLC’s Dan Nossa and Kristian White explain: How blockchain technology could alter the real estate business.
  • The EY/Riverview deal continues to reverberate throughout the legal industry, and it seems EY isn’t going to gently move things along. According to LegalFutures this morning: “Riverview Law is set for a huge global expansion over the next five years once EY completes its acquisition, the partner who is to head the new business has said. Chris Price, EY global head of alliances – tax, told Legal Futures that the plan was to increase staff numbers from 100 to 3,000.”

And from Accountancy Daily, “EY is to plough an additional $1bn (£784m) into new technology solutions, client services, innovation and the firm’s ‘ecosystem’ over the next two financial years.” “Additionally, Nicola Morini Bianzino has joined as EY global chief client technology officer (CCTO) and Steve George as EY global chief information officer (CIO). They join Barbara O’Neill, EY global chief information & security officer (CISO).”

 

  • Artificial Lawyer has launched their AL 100 Legal Tech Directory to meet this need: “People want to have some idea of what all these companies (providers of ‘progressive legal tech’) are offering, who they are and who runs the company, how do they price their software, what security standards do they meet, what markets do they operate in, and what makes their application special? In short, people want some detail.” I won’t try to offer a complete description. Check this out!

 

  • Here’s a real world example of AI at use in litigation: Legal Week Innovation Awards 2018 – AI Innovation: Bryan Cave Leighton Paisner. “Not only was the outcome a success, it also saved the client a considerable sum of money on a traditional document review (estimated to be about two-and-a-half times more expensive).”

 

  • From Finnegan‘s Susan Y. Tull and Paula E. Miller in The Journal of Robotics, Artificial Intelligence & Law. Patenting Artificial Intelligence: Issues of Obviousness, Inventorship, and Patent Eligibility.

 

  • Artificial intelligence in the legal industry: AI’s broader role in law – Part 2. “This is the second article in a three part series looking at artificial intelligence’s growing presence in the legal industry. Here, Information Age looks at AI’s broader role within the law firm, with specific case studies from Perkins Coie and Hogan Lovells.” Like Part One, worth your time.

 

  • Not AI per se, but “Californian law firm, Keesal, Young & Logan (KYL), and legal tech company, Mitratech, have together announced today the formation of a ‘TAP Workflow Automation partnership’ that is aimed at helping clients improve their legal processes.” More from Artificial Lawyer here.

 

  • From Drinker Biddle: President Trump Signs New National Security Legislation Governing Foreign Investments in the United States: How the New Law May Affect You. The post includes: “‘Critical technology’ includes any technology subject to U.S. export control lists (i.e., the U.S. Munitions List and Commerce Control List) as well as yet-to-be-defined “emerging and foundational technologies.” These “emerging and foundational technologies” will be defined by U.S. export control authorities and may include certain new technologies that are not currently subject to significant export controls, such as Artificial Intelligence, some forms of quantum computing and advanced materials, as well as more traditional technologies deemed fundamental to the U.S. industrial base, such as chemicals, energy, metallurgy and transportation.”

 

Blockchain

  • From K&L GatesBlockchain Energizer – Volume 33. “Four New York Utilities Will Collaborate to Develop “Transformative” Use Cases for ‘Shared Blockchain Infrastructure.'”

 

  • “The Commonwealth Bank of Australia (CBA) is claiming the world’s first bond transaction delivered solely using blockchain, having been charged with the honour by the World Bank.” “The “$AUD Kangaroo bond”, Blockchain Offered New Debt Instrument (bond-i), which uses a private Ethereum blockchain, has been developed alongside the Northern Trust, QBE, and Treasury Corporation of Victoria.” More here.

 

  • “The UK’s Financial Conduct Authority (FCA) has, in collaboration with 11 financial regulators and related organisations including America’s Bureau of Consumer Financial Protection, created a Global Financial Innovation Network (GFIN), which will support a ‘global sandbox’ to test out new technology such as AI and blockchain.” More here from Artificial Lawyer.

 

  • Blockchain and AI “could underpin” future law firms. “A future where law firms are ‘distributed entities’ based on blockchain and smart contracts, and lawyers will add value by being “stronger” trusted advisers assisted by artificial intelligence, has been mapped out by futurologists. The paper was co-authored by leading UK legal academic Professor John Flood, currently working at Griffith University in Australia, and his colleague at the Law Futures Centre there, Lachlan Robb.” “Lawyers’ main activity could still be as a ‘trusted adviser’, but with enhanced value, they argued. This time, the lawyer will not only be imbued with the expertise gained from experience and knowledge – but also augmented with the power of machine learning. Our traditional conception of the lawyer does not disappear but reappears in a stronger form.”
  • A couple of days ago I reported on EY’s acquisition of Riverview Law. Since then it has been very widely reported (e.g., here) and the subject of many tweets, blog posts (e.g., here) and articles. Many see it as a portent of things to come, some agreeing with “Cornelius Grossmann, Ernst & Young’s global law leader, (who) said in a press release that the acquisition ‘underlines the position of EY as a leading disruptor of legal services.’ EY says the company will help it cut the costs of routine legal activities.” Artificial Lawyer’s in-depth analysis includes: “The EY/Riverlaw deal matters, but it matters most because it is part of a far larger picture: the incremental industrialisation of the provision of legal services to the global economy and society as a whole.”

 

  • AI you can use! This interview with Ping CEO Ryan Alshak describes how his company tries to take the pain out of timekeeping. “We obsess over eliminating the friction of timekeeping. There is no reason why it should take just as long to log work as it does to perform the work in the first place. Our design motto is ‘less clicks.’ In terms of automation, we plug into systems lawyers use to perform billable work and we leverage machine learning to build a complete timesheet. So, a lawyer works exactly as they are now, and Ping captures, categorizes, describes and codifies it automatically. The lawyer just needs to review and release.” Of course, this is only relevant if your law firm still records time.

 

  • From Radiant Law, a LawTech Glossary with more than a twist of sarcasm. for instance, AI is, “A term for when a computer system does magic. “General” artificial intelligence refers to thinking computers, a concept that for the foreseeable future exists only in science fiction and LawTech talks. “Narrow” artificial intelligence refers to a limited capability (albeit one that may be very useful) such as classifying text or pictures, or expert systems. Discussions of AI that blur general and narrow AI are a good indication that you are dealing with bullshit.” I also enjoyed this one: “Design thinking: A new approach to improving processes, involving sticking brightly coloured post-it notes to walls or, preferably, windows.”

 

  • Ropes & Gray (Mark V. NuccioGideon BlattMike Tierney) issued this alert regarding a report issued July 31: Treasury Department Issues Regulatory Report on Fintech and Innovation. Among Treasury’s recommendations: “Further development and incorporation of cloud technologies, machine learning, and artificial intelligence into financial services.”

 

  • This article (The Robots are Not Just Coming – They are Already Here) is from the Journal of Accountancy, but its recommendations for “Cherished Advisors” are applicable to law firms.

 

  • Computer Security: New genre of artificial intelligence programs take computer hacking to another level. “(A) team from IBM … have used the artificial intelligence technique known as machine learning to build hacking programs that could slip past top-tier defensive measures. The group will unveil details of its experiment at the Black Hat security conference in Las Vegas on Wednesday.”  “Whoever you personally consider evil is already working on this.” More here.

 

  • National Security: As China’s Military Masters Artificial Intelligence, Why Are We Still Building Aircraft Carriers? “China appears determined to seize this AI “high ground” of future conflict. For the last two years, Chinese companies have won an AI competition for detecting objects. The Chinese are happy for the U.S. to keep building carriers and bombers, so long as they deploy the more advanced technologies that can disable these systems.” “…(I)n the Pentagon’s initial request for $74 billion in new defense spending in fiscal 2019, only .006 percent was targeted for science and technology.”

Meanwhile, thisPentagon to create new command for fighting in space, but resists Trump’s proposed ‘space force’. “Trump has never explained at length why he favors creation of a space force as an additional military service, but the concept often draws loud cheers at rallies.”

And this: JAIC: Pentagon debuts artificial intelligence hub. “On June 27, Deputy Defense Secretary Patrick Shanahan issued a memorandum that formally established the Defense Department’s new Joint Artificial Intelligence Center (JAIC). According to the memo, JAIC’s overarching aim is to accelerate the delivery of AI-enabled capabilities, scale the impact of AI tools, and synchronize the department’s AI efforts.”

 

Blockchain

  • Like Oil and Water: Artificial Intelligence and Blockchain. This post‘s author () remarks that “(o)ver the next ten years, AI and Blockchain are two technologies that will form a pillar for the next set of billion (trillion?) dollar organizations. When combined with the Internet of Things, there are some useful applications that will be created to make our lives even easier.” But for now, he sees AI’s utility mainly in detecting fraudulent blockchain activity, and conversely that blockchain can serve as “(d)ecentralized AI marketplaces for data that AI needs.”
  • LexisNexis’ Lex Machina “announced a major new expansion that provides analysis of insurance litigation.” Details from Artificial Lawyer here.

 

  • Also from Artificial Lawyer: “Canada-based legal AI pioneer, Kira Systems, has completed its SOC2 Type II reporting certification to help remove any fears customers may have over data security.”

 

  • This piece from The National Law Review reminds lawyers that it is their duty to keep up with technologies such as AI. “Comment 3 to the ABA Model Rule 5.3 was amended in 2012 to take into account situations where it is necessary for attorneys to rely on vendors. “When using such services outside the firm, a lawyer must make reasonable efforts to ensure that the services are provided in a manner that is compatible with the lawyer’s professional obligations.”

 

  • From Hydraulics & Pneumatics (my first from that publication!): How Artificial Intelligence Is Changing Construction. “Artificial intelligence is expected to alter business models in the construction industry in areas including logistics, customer relationship management, support, workflow automation, and finance. Even more, artificial intelligence can help in recreating realistic situations for training, reducing injuries and costly mistakes and making operations more efficient. This can enable operators to better use existing labor resources, helping with the skilled labor shortage in construction.” The article explains current constraints to adoption.

 

  • Don’t forget to swallow your AI: This swallowable chip uses glowing bacteria to spot hidden illnesses. “Researchers at MIT have been working on a chip that could one day be offered to patients with suspected gastrointestinal bleeds instead of an endoscopy. The researchers have created a prototype of the chip that can be swallowed like a pill, sampling a patient’s gastrointestinal environment for signs of bleeding as it travels through their digestive system.”

 

  • Trump’s trade war with China has AI implicationsTrump focuses on technology exports, foreign investments in ongoing trade war. “Already threatened by escalating U.S. taxes on its goods, China is about to find it much harder to invest in U.S. companies or to buy American technology in such cutting-edge areas as robotics, artificial intelligence and virtual reality.”

 

Blockchain

  • From Waller: “When it comes to digital coins or tokens, it’s best to approach with caution, ask plenty of questions and conduct extensive research before making an investment, warns the Commodity Futures Trading Commission (the “CFTC”).”

 

  • And now, blockchain-based insurance against security failures of smart contracts: Ethereum-Powered Insurer Nexus Is Winning Over Blockchain Skeptics. “With Nexus, Karp is trying to revive mutual insurance, a model that dates back to the 17th century and, many argue, aligned the interests of participants better than today’s profit-maximizing insurance firms. Nexus is one of a handful of blockchain startups, at various stages of development, aiming to use the technology for this purpose.” Much more here.
  • From Information AgeArtificial intelligence in the legal industry: Adoption and strategy – Part 1, an insightful discussion with Geoffrey Vance, the chair of Perkins Coie’s E-Discovery Services and Strategy Practice, and Alvin Lindsay, partner at Hogan Lovells. The discussion of the future role of associates is especially interesting, and several useful links are included.

 

  • Investment money pouring into legal AI. “Legal tech blogger Bob (“God”) Ambrogi just posted that $200 million in new investment capital has found its way to legal tech companies in just May and June of this year. The money went into companies that are either based in machine learning (sometimes called “artificial intelligence”), an increasingly important sector of legal technology.” The post from the Akron Legal News lists some of the specific investments.

 

  • According to Bloomberg’s Big Law BusinessAnalytics Give Law Firms the Competitive Edge. “Bob Ambrogi’s Law Sites Blog lists more than 690 legal tech start-ups that are either currently active or have closed or been acquired. He only began keeping count in 2016.” The article goes on to report to report the results of a 2017 survey of 1117 respondents, including findings such as, “(b)y providing structure and visualization to information, technology is enabling attorneys to understand past results and forecast costs, time to resolution and outcomes — and thereby better serve their clients and operate their organizations more successfully.” The article includes a lot of interesting data, showing the success to-date of AI. Here’s a link to the full report by Above the Law. The survey was conducted back in October 2017, and results are reported with some care regarding statistical integrity. All that’s missing to have high confidence in the findings is an idea of the response rate; that is, how many were asked to participate in order to achieve the 1117 responses.

 

  • This post by Ron Friedmann (Legal Transformation or Disruption? A New Rule for Talking About It) is a suggestion for mitigating the extreme hype now plaguing discussions of legal AI and tech in general. It’s a step in the right direction, but is still subject to personal judgement (and hyperbole). I do not have a better idea.

 

  • This post (Baker McKenzie’s Growth Shows Value of One-Stop Legal Shopping from Bloomberg Big Law Business) includes: “(t)he firm also recently adopted artificial intelligence tools in 11 offices in three continents as the first step in a worldwide rollout. This will allow faster, more comprehensive review of merger and acquisition work, and other work involving contracts, the firm said.”

 

  • As I visit law firms, I am asked more and more about the Big 4 accounting firms’ encroachment into the legal space. This threat has been popping up since the days of the Big 8, but has more substance today than ever before. For instance:

Breaking: Big Four firm buys services ‘disruptor’ Riverview. “Global accountancy giant EY today laid down a significant marker in its expansion into legal services with the capture of forward-thinking firm Riverview Law.” … “The deal marks another step in what has long been predicted would be the rise of the ‘Big Four’ accountancy firms to rival – and possibly overtake – the biggest existing law firms. Each of those four, EY, KMPG, PwC and Deloitte, now provide reserved legal services.” Coverage here and here. “EY said the acquisition underlines its position “as a leading disruptor of legal services” and will “help clients to increase efficiency, manage risk, improve service transparency and reduce costs of routine legal activities.”

And the same day, KMPG published, “In the legal sector, this disruption presents vast challenges as firms struggle to move from traditional hierarchies, manual research requirements, time-based billing models, and other traditional ways of operating, into tech-empowered models fit for the future.” “Adapt or fall behind. Now is the perfect time to reimagine every layer of the workplace to future proof the legal profession.”

 

  • Here’s an interesting application of AI from Seyfarth Shaw: Australia: New Transparency: Using Collaboration And Technology To Address Modern Slavery. “Mining data (for example, from mobile phones, media reports and surveillance cameras) which can be analysed using artificial intelligence and machine learning to extract meaningful information and identify risks in the supply chain.”

 

  • From The Atlantic, this interesting application of sentiment analysis. The AI That Reads All a Company’s Emails to Gauge Morale. The very interesting article discusses text analysis generally and is definitely worth reading.

 

  • Canada’s Miller Thomson postedArtificial Intelligence Revolution and the Insurance Industry. “AI may soon be heavily used in all aspects of the insurance industry, including sales, customer service, underwriting, claims assessment and fraud detection and prevention. AI has and will continue to be used in the area of insurance marketing.”

 

Blockchain

  • From ForbesTrust, Security And Efficiency – How Blockchain Really Intersects With Artificial Intelligence. “Blockchain, though powerful on it’s own, becomes enhanced to a whole new level when coupled with AI technology. New features and capabilities become unlocked, enhanced, and more secure through the convergence.” Several instances of this synergy are discussed, but there’s no real insight as to how they will actually work together.

 

  • Get smart: blockchain will liberate lawyers. Sounds good, no? This post from the UK’s Law Society Gazette, focuses on smart contracts and details several concerns and limitations thereof, including use of imprecise terms such as “reasonable.”

 

  • This piece from ComputerWorld (By 2020, 1-in-5 healthcare orgs will adopt blockchain; here’s why) reviews several applications of blockchain in healthcare. It’s a deep dive into the pros and cons, and describes several applications, including smart contracts. “Blockchain lets the healthcare industry exchange data in a standard format, automate complex processes and apply AI against large silos of medical data. It might even allow patients to sell their data for rewards.”
  • Baker McKenzie steps toward next-generation contract analytics. “The global law firm has partnered with ContraxSuite by LexPredict, an open-source contract analytics and legal document platform.” “The custom software reduces time spent on legal document review, making sure human talent is focused more on high-value work, he said. ContraxSuite uses AI and human input to augment and integrate the user’s experience with the document they are working on.” More here.

 

  • From Cozen O’Connor: Ford’s new AV Unit, including Argo AI, opens door to all kinds of investors. “Ford expects to invest $4 billion in its autonomous vehicle efforts, including $1 billion in Argo AI over the next five years, and has structured Ford Autonomous Vehicles to take on third-party investments.”

 

  • Looking for a new home? Revolutionary New Real Estate Shopping Platform HomLuv.com Solves Millennial Home Buying Woes. ” HomLuv.com is a revolutionary new, AI-driven home shopping platform that helps buyers find the right home in the right area and price range with customization features that they have come to expect.” Here’s the press release.

 

  • Google has promised this sort of real-time translation for a while, but it never seems ready for prime time. I look forward to reviews of this one. Xiaomi’s new feature phone does real-time voice translation in 17 different languages. “It is a 4G VoLTE-enabled feature phone that runs on a forked Android OS called Mocor 5. The highlight of the device is its AI voice feature that does real-time voice translation in 17 different languages. Using AI, the phone is said to answer questions and tell stories to young ones.”

 

  • From DLADLA Piper advises doc.ai in partnership with Anthem, Inc., to launch AI data trial. “The 12-month trial will begin in August and explore whether AI can be used to predict when people will experience allergies or allergy patterns. To do so, doc.ai and advisors from Harvard Medical School will develop a framework for using machine learning to identify predictive models for allergies based upon the phenome (e.g., age, height, weight), exposome (e.g., exposure to weather/pollution based on location) and physiome (e.g., physical activity, daily steps) data collected from participating Anthem employees and members of the public. Participants will help accelerate research and benefit from the system’s personalized health insights.”

 

  • Upcoming webinar: “Blue J Legal’s CEO, Benjamin Alarie, will give a walk-through of Employment Foresight, a new AI-powered software being used by lawyers, in-house counsel and HR professionals to accurately predict how courts will decide outcomes of challenging employment law issues like reasonable notice periods. He will use the classifier on a recently decided case and demonstrate the impacts of key factors, including which factors can swing a decision one way or another.”

 

  • This is a bit of an infomercial from iManage RAVN, but worth a quick read nonetheless. Lawyers Reaping the Rewards From AI Robots: How Artificial Intelligence is Transforming the Legal Industry. “The real threat AI robots pose is to those lawyers who, through inertia or fear, fail to use AI to help them be more productive, smarter professionals. These lawyers shouldn’t fear being replaced by AI robots but instead, by those lawyers who are using AI to deliver services better than them.”

 

Blockchain

  • Well this hits close to home. Nashville’s real estate market has been on a tear for about a decade (now somewhat constrained by lack of inventory), and now, here come the cryptocurrency investors, “a growing number of competing technology-based ventures flooding Nashville’s real estate market with millions of dollars.” “Our business is something people haven’t seen before,” said Andrew Jewett, co-CEO of Property Coin. “We are buying homes in both cash and cryptocurrencies. We love the Nashville market and want to buy $50 million in Nashville real estate in the next year.”

 

  • From White & CaseIs blockchain M&A poised to accelerate? “As the token industry continues to mature, opportunities for M&A transactions will continue to abound. Start-ups will seek exits and infrastructure players in a fractured market will be consolidated and absorbed by more efficient market leaders. And in a bid not be left behind, established market players will leverage their existing client bases to pivot toward token exposure.” “In navigating these transactions, however, it is important to remember that token technologies, while novel and potentially revolutionary, are not immune from the fundamental legal, regulatory and compliance frameworks that apply to business, and in particular financial services business, more generally.”

This is shaping up to be a slow week in legal AI, so this post will be almost entirely devoted to giving you a taste of what’s going on in the wider AI world.

  • Here are Five of the scariest predictions about artificial intelligence.

 

  • And in a kinda similar vein, here’s Debunking 8 Myths About AI in the Workplace.

 

  • AI is moving into HR in several ways. A few are discussed hereThe 4 trends changing recruitment, and the opportunities that they provide for background screening.

 

  • Artificial Intelligence: A net positive for banks. “The steady increase of AI in banking, however, will likely have both positive and negative impacts on the banking industry.” Details here.

 

  • AI is improving Business Intelligence (BI) by helping us ask better questions. “For example, AI is starting to allow BI technology to:
    • Tell you what question you should have asked, instead of just answering the one you did.
    • Provide relevant, interesting, additional insights about the question you did ask.
    • Identify anomalies in the data that might be actionable and proactively alert a business person that action may need to be taken—even if they’ve never asked a question about that dataset in the past.”

More here.

 

  • Using artificial intelligence, researchers are teaching a computer to read the Vatican’s secret archives. Coverage here and here.

 

 

  • And speaking of healthcare, here’s Expert Insights: The Future of Drug Discovery Looks to be in the Hands of Artificial Intelligence.

 

 

  • Chinese search engine giant Baidu is using AI to drive ad sales and it appears to be paying off. “Company reported a record $3.93 billion in quarterly revenue as net income soared 45%.” Details from the WSJ here.

 

  • As we become more used to talking to computers and other devices, chatbots are poised to take over B2C and even B2B customer service (and your website). Here’s Why AI is The Next Revolution In Customer Service.

 

  • The other world powers are involved, so it’s no surprise that: India considering military usage of Artificial Intelligence. for Defence told the Lok Sabha that the ministry has initiated the process of preparing Indian defence forces in their use of and leveraging India’s capabilities in sectors.”

 

 

  • Here’s an interesting blockchain story from the WSJ: Nestlé Blockchain Test Traces Ingredients From Suppliers to the Mouths of Babes.

 

  • From the Australian edition of the Daily Mail (of course), here’s Inside a sex robot factory: The frighteningly realistic ‘breed’ of AI-equipped androids – and why the popular ‘female’ has a Scottish accent. It’s pretty much safe for work. There’s a male version in the works.

 

And here are just a couple of bits re the legal world.

 

  • From Cooley: “The European Commission recently announced that Croatia has become the last Member State to sign the Declaration of Cooperation on Artificial Intelligence. As discussed in our recent blog, the Declaration commits all Member States to cooperate on an EU wide AI strategy. The EC’s strategy is part of a wider programme to develop digital skills and to invest heavily in research and innovation. Part of that strategy will involve coordinating funding across Europe to create synergies. The EC has recognized that AI is an area where you must invest to see results and has proposed a budget of €2.5 billion to assist with the adoption of AI across Europe.”

 

  • From Above the Law: How Artificial Intelligence is Transforming Legal Research. Quotes include, “It’s not technology for the sake of technology.” and “It might be more fun to use cutting-edge technology to solve a problem, but sometimes we might use older technology, depending on the issue.” “The goal is always solving the problem and helping the customer.”

 

  • It’s legal, but this is from Wired Magazine: Despite Pledging Openness, Companies Rush to Patent AI Tech.

 

  • “Clifford Chance (CC) has launched a new training contract focused on legal technology, as the firm looks to nurture up-and-coming talent with an aptitude for areas such as fintech, coding and artificial intelligence. The pilot scheme, called IGNITE, will start in autumn 2021…. The positions, which will be open to law and non-law students, will sit alongside CC’s existing training contracts, and include traditional seat rotations. At the end of the contract, successful trainees will have the opportunity to join one of CC’s key practice areas: capital markets, corporate, dispute resolution, employment, finance, real estate and tax.” More here.

 

  • From Law.com: Law Firms Need Artificial Intelligence to Stay in the Game, “The Legal Department Is Savvier and Has More Options In the Form of ASPs and Legal Technology. It’s Time for Law Firms to Embrace Change. AI Is a Key Ingredient In Doing So.”

 

 

  • Kennedys to prototype six innovations from its Ideas Lab. “Staff at law firm Kennedys could become CEOs of their own legal start-ups after it shortlisted six of the more than 100 proposals generated through its Ideas Lab. The six shortlisted proposals will now be turned into prototypes with the help of the firm’s offshore development team. The six successful ideas focus on clients’ pinch points, such as helping them to make quicker and better decisions on liability and settlement offers, to dealing with litigants in person, and to respond to major incidents.” More here.

 

  • The Growing Global Trend in the Use of Artificial Intelligence and Big Data in Patent and Trademark Applications. “Startups and tech companies are not the only ones who are developing artificial intelligence (AI) and big data technologies to improve efficiency. The World Intellectual Property Organization (WIPO) recently (May 2018) published a summary report indicating that intellectual property offices throughout the world are evaluating and experimenting with AI.” “WIPO’s report notes the following advantages: cost savings, increased expediency of examination of the application, and overall improved ability to provide examination services.” More from Norris McLaughlin here, and the WIPO report here.

 

  • It has been a while since I have repeated the mantra, “it’s all about the data.” So, here’s this from McKinsey via ZDnet: Most companies lack the infrastructure for artificial intelligence. “Companies with a strong base in these core areas (cloud computing, mobile, web, big data and advanced analytics) were statistically more likely to have adopted each of the AI tools.” Here’s the original post from McKinsey.

 

  • Press releaseSentio Software Announces Sentio Maestro for Relativity – A Document Review Model-based Quality Control Technology. “Sentio Maestro provides the ability to automatically identify and correct incorrectly classified documents. It can be applied to any review, in process or new, without changing or disrupting the current workflow. e-Discovery teams can use Sentio Maestro for linear review, to identify and correct reviews and for near real-time evaluation of reviewers and the overall review. Sentio Maestro checks each reviewed document individually to identify possible false negatives or false positives.”

 

  • From the UK: What’s artificial about ethical AI in the legal industry? Everything. “With many companies and people around the world relying on artificial intelligence, considering the implications of how AI programs can act and affect outcomes (positively and negatively) is too important to avoid. And people, not technology, have the answers.” See a discussion of the work of the Select Committee on Artificial Intelligence here.

 

  • Here‘s a cool advance in robot technology, using AI to figure out the moves of a robot hand: “…(T)he advance was in how the hand gained the skill: All the learning happened in a software simulation and was then transferred to the physical world with relative ease.” More coverage here.
  • Check out this discussion on LinkedIn of Ron Friedmann’s postCan Law Firms Gain a Sustainable Advantage with AI? Several luminaries weigh in. (I maintain that AI has reached, or will soon reach, the point of being a class of universally available resources, akin to utilities. At that point, AI will not inherently deliver a competitive advantage any more than will electricity. The competitive advantage will come from what you do with it.)

 

  • This in-depth story from NBC is a good summary of where we stand with AI facial recognition. By one account, it’s about 95% accurate, but the errors skew toward minorities. “Great promise — and great peril.” According to a representative of the Oakland Police Department, “Until we identify an incredible benefit for facial recognition, the cost is just too high.”

 

  • This 20-minute podcast from Law Pod UK discusses “a world in which legal decisions are no longer made by humans.” Ep. 40: How AI and algorithms impact on regulation and adjudication. It features Law and Political Science Professor Cary Coglianese from the University of Pennsylvania, and David Lehr, a research affiliate at the Penn Program on Regulation and a student at Yale Law School. The examples of current AI-based adjudication in the private sector are interesting. One of the speakers suggests that use of AI may be inconsistent with Lincoln’s government “of the people, for the people and by the people.”

 

  • From Healthcare FinanceWhat healthcare CFOs should know about artificial intelligence, machine learning and chatbots. “Artificial intelligence is coming to healthcare. In fact, it’s already here, and physicians are benefiting from it, using it to streamline administrative functions and enhance the patient experience.”

 

  • From Crowell & Moring’s Fastest 5 Minutes, The Podcast Gov’t Contractors Can’t Do Without (July 27), (it’s actually 8+ minutes), this episode touches on the DoD’s establishment of the “Joint Artificial Intelligence Center”, also called the “AI Command (AIC)”, to “accelerate the delivery of AI capabilities, scale the DoD impact of AI and synchronize DoD activities to expand joint force advantages.” There’s quite a bit more here.

 

  • From Above the Law, Patrick Fuller’s thoughts on law firms’ obstacles to adoption of AI-based technologies. “The biggest obstacles for getting firms to adopt AI tend to be combinations of different factors — most notable are attorney compensation structure, the matter’s fee arrangement, and the practice area as well.” More of Patrick’s thoughts and findings of the recent ALM survey here. And since it’s Friday, here’s what I assume is his high school yearbook headshot.

 

  • Interesting thoughts regarding the use of blockchain for betting and the obstacles to its regulation here. Crypto Prediction Market on Blockchain Raises Regulatory Concerns. “(A) contract listed on the site may be worth watching. It asks, ‘Will the Forecast Foundation face an enforcement action from the SEC or CFTC before Dec. 21, 2018 for hosting unregulated derivatives markets?'”

 

  • Here’s more about Blockchain from K&L Gates: Blockchain Energizer – Volume 32. They review two developments: “The Arizona Corporation Commission Opens the First Blockchain-focused Utility Regulatory Docket,” and “Energy Web Foundation and LO3 Energy Partner to Standardize Data on Tobalaba.”

 

  • A legal conference with it’s own AI-powered chatbotAPAC regional legal tech conference LexTech launches AI assistant. “Called, LEXi, the Artificial Intelligence chatbot was developed by Malaysia’s CanChat and will focus on addressing enquiries of LexTech delegates in real-time via Facebook Messenger….”

 

  • From Law360The Future Of Authenticating Audio And Video Evidence. “Audio and, to a much greater extent, video are the preeminent forms of probative evidence (both inside and outside the courtroom). Attorneys must at least begin to think about a hypothetical future in which audio or video recordings cannot be taken for granted. The recent emergence of artificial intelligence-based technology has prompted serious concerns about the…” (That’s as far as I could get without a LexisNexis account.  🙁

 

  • This half-hour video from the ABA’s Law Technology Today (Big Results with Big Data) pretty much delivers on this promise: “In this video, you will hear from the Chief Knowledge and Client Value Officer at Shearman & Sterling on how they are leveraging big data and litigation analytics to build a stronger case strategy for better management of client expectations. You will also get the inside scoop from a Product Developer at Thomson Reuters to see how they are doing big data differently to improve your practice.”

 

  • Squire Patton Boggs partner Huu Nguyen authored this pieceArtificial Intelligence Law is Here, Part One, “Law is being developed now, in order to set the rules of the road for the usage of AI. And we as lawyers should recognize it as a specific discipline.” “I don’t think lawyers will lose their jobs in droves to robots. But, nonetheless, the practice of law will change.” This first part is a bit of a teaser mainly providing background info and concluding with, “(t)une in for part two of this series, in which I will discuss robot speech issues, AI bias and transparency, regulatory guidance on use of robo-advisors by the SEC, proposed AI laws before Congress and more.”

 

  • Here comes another blockchain consortium, featuring law firms and tech firms. BakerHostetler, LexPredict and Others Partner to Develop Blockchain ‘Middle Layer’. “Agreements Network is slated to serve as an arena for lawyers and others to build technologies using blockchain for ends like contracts, asset management and evidence storage.”

 

  • I don’t believe it’s too much of a stretch to include news about the Big Four accounting firms’ relentless march into the legal space in a blog about legal AI. So here goes: Deloitte to Join Big 4 Legal Race in Singapore With Foreign Law Firm Launch.