The legal and corporate worlds are buying into the power of AI and machine learning. Now, many industries are becoming increasingly receptive to how to use better data classification methods and AI models to generate better business practices. A decade ago, the legal and corporate worlds needed more convincing about the power of AI and machine learning. Now, many industries — legal included — are becoming increasingly receptive to how to use better data classification methods and AI models to generate better business practices.
2. “I believe with advancement of Artificial
Intelligence technologies, all
professional service industries business
models are under threat. I believe that
the future is going to be an arms race of
companies building their own
proprietary AI models. Law firms will
look to build out their own bespoke
models to effectively compete and
differentiate. In a few years, law firms
will be advertising their AI models on
their websites and not their people.”
- NexLP CEO Jay Leib
NexLP.com | info@nexlp.com
3. What is an AI Model?
An AI model is formed similarly to how a person’s mind develops. Learned behavior is
based on patterns. By capturing and studying the expertise and experience of a past
occurrence while attempting to containerize that knowledge, a specific scenario can be
re-created. For legal teams and copratations, this is applicable for:
● eDiscovery
● Investigations
● Information Governance
● Corporate Governance
MODELS ARE A CONTAINER OF FEATURES.
FEATURES REPRESENT THE COLLECTION OF
PAST KNOWLEDGE THE MODEL HAS LEARNED
NexLP.com | info@nexlp.com
4. A decade ago, the legal and corporate worlds needed more convincing about
the power of AI and machine learning. Now, many industries — legal included
— are becoming increasingly receptive to how to use better data classification
methods and AI models to generate better business practices.
Lawyers and investigators have been finding and labeling documents for many
years, but they’ve never had the technological capabilities to holistically
analyze data with contextual review at scale with such speed and accuracy.
Until now.
The Value of AI Tech for Enterprises & Firms
Artificial Intelligence has become a
buzzword, but not many truly understand
the vast benefits of applying this technology
to traditional business models.
Many organizations struggle with how to justify
adding another line item to the technology budget.
Others question how AI can actually enhance
operational efficiencies, while others are simply
overwhelmed with learning how the technology
works.
NexLP.com | info@nexlp.com
5. AI Market Growth
NexLP.com | info@nexlp.com
$6.5
Billion
The predictive analytics software market is propelling the
machine learning application market forward. The market is
projected to reach $6.5 billion in 2019 — up $4.5B from 2012.
$15.7
Trillion
AI is projected to be a $15.7 trillion market by 2030, according to
PwC data — with the U.S. accounting for $3.7 trillion of that
growth. This growth is expected to be driven by productivity
gains from businesses automating processes and increased
customer demand.
“The first step in creating value from data and analytics is accessing all the
information that is relevant to a given problem. This may involve generating the
data, accessing it from new sources, breaking silos within an organization to link
existing data, or all of the above. Combining and integrating large stores of data
from all of these varied sources has incredible potential to yield insights, but
many organizations have struggled with creating the right structure for that
synthesis to take place.”
-McKinsey & Co.
A McKinsey & Co. report on “The Age of Analytics” hits on the
value of AI and deep learning to innovate industries on a global
scale. Looking specifically at lawyers, the report cites the value
deep learning can bring to automate processor and provide
enhanced consultation. The report estimates that 31% of activities
could be automated with machine learning.
31
Percent
$3
Trillion
The amount of wages potentially affected if machine learning gains
better capabilities in natural language understanding.
“AI has the potential to become a great equalizer.” — PwC
6. The AI Market Is Transitioning Quickly
NexLP.com | info@nexlp.com
“Many companies haven’t seen the payoff from their big data investments. There
was a disconnect. Business and tech executives thought they could do a lot more
with their data, but the learning curve was steep, tools were immature, and they
faced considerable organizational challenges.”
-PwC 2018 AI Predictions Report
Innovation in AI tech, machine learning and data analytics are eliminating
this disconnect
Tech advancements highlighted by PwC’s report:
● “Easier methods for mining less-structured data,
including natural language processing for text
indexing and classification”
● “Enterprise application suites that incorporate more AI”
● “Emerging data lake-as-a-service platforms”
● “Public clouds that can take advantage of different
kinds of data”
● “Automated machine learning and data management”
7. NexLP.com | info@nexlp.com
AI Investments are Skyrocketing
Global revenues from AI for enterprise applications is
projected to grow from $1.62B in 2018 to $31.2B in 2025.
(Source: Statista, 2018)
8. NexLP.com | info@nexlp.com
Investments Grow as Value is Realized
84% of enterprises believe investing in AI
Will lead to greater competitive advantages.
AI will
allow us
to move
into new
businesses
AI will allow
us to obtain
or sustain a
competitive
advantage
New orgs.
Using AI
will enter
our market
Incumbent
competitors
will use AI
Pressure
to reduce
costs will
requires us
to use AI
Suppliers
will offer
AI-driven
products
and
services
Customers
will ask for
AI-driven
offerings
(Source: Statista, 2018)
9. NexLP.com | info@nexlp.com
Greater Accuracy Has Driven Growth
Error rates for image labeling have fallen
from 28.5% to below 2.5% since 2010.
(Source: 2017 AI Index Report)
10. The Value of AI Models for Legal
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AI Models take the collective
consciousness of past matters and
instantly apply learned knowledge
to all incoming matters. With the
pervasiveness of Artificial
Intelligence, it will be imperative to
leverage this technology across
legal services.
Instead of complicating
practices, firms should invest
in AI technology that helps
them design repeatable
processes to find signals, key
facts and reduce costs.
11. How AI Tech Innovates
eDiscovery Practices
The Application of AI Models helps firms:
● Address gaps by helping teams find key information in data
they didn’t realize was hidden in plain sight
● Decide what is relevant and what is not
● Make sense out of unstructured data
● Use past patterns to detect future problems
NexLP.com | info@nexlp.com
An AI model library acts as a resource for firms to select the
appropriate model for similar cases to be used today and in the
future. This allows firms to analyze documents and data with
contextual review far faster than a human’s mind could compute.
AI models form from autonomously learned behavior, which is
also based on patterns, By capturing and studying the expertise
and experience of a past occurrence firms can recreate specific
scenarios and find information within data that they didn’t even
know they were looking for.
12. How AI Gives Firms an Edge
NexLP.com | info@nexlp.com
Industry data suggest firms are already taking advantage of technology-assisted tools,
leveraged data analysis, machine learning, data visualization and artificial intelligence.
P
E
R
C
E
N
T
AI models help firms analyze information needed to craft their litigation strategy in
order to better advise their clients. AI technology helps project case outcome by
putting the data in context. AI models act as a resource for firms to select the
appropriate model for similar cases to be used today and in the future. AI models are
built out probabilities and help decide what is relevant and what isn’t in a case.
Analytical tools are used in a variety of ways.
Based on survey conducted by Above the Law and Bloomberg Law
13. AI Models Bring Value to Big Data
NexLP.com | info@nexlp.com
“Everybody is talking about big data.
There’s so much data, companies
cannot process it manually anymore.
They need machine learning to get
real insight and context of that data.
The trend came together where we
saw the merging of AI, big data, and
machine using really complicated
algorithms. It’s really a dramatic shift
how much people are using AI in their
daily lives.”
— Dr. Irina Matveeva,
Head of Machine Learning, NexLP.
14. A Competitive Difference
AI Models take the guesswork out of the mix
NexLP.com | info@nexlp.com
A survey conducted by Above the Law and Bloomberg Law indicated that 70%
of respondents relayed that “the use of analytics has given my firm a
competitive advantage.”
That same survey indicated that nearly 65% reported “the use of analytics
has provided significant insight beyond what I obtain for other types of
tools.”
15. Why Firms Need AI Technology
There’s a common theme among among legal firms: Sorting through
data manually is a time-consuming and costly task. With a need to
leverage actionable information faster, many firms want to replace
existing technology that will solve their current data analysis needs.
Instead of expanding technology budgets to include a new item, many
firms express the need to replace a current system by adding on
additional expenses to their team.
NexLP.com | info@nexlp.com
16. AI Tech: A Better Approach
The evolution of technology is shifting how legal
teams think about the application of AI and
predictive analytics in their everyday tasks. The
key for legal teams is to employ technology that
is ubiquitous and invisible.
An advanced AI approach augments a human’s
ability to identify social networks, patterns,
anomalies, behavioral changes, emotion, key
actors, and topics to find key information needed.
No human can remember all the little bits of
information they've read over the entire matter, let
alone things they may have read years ago, and
connect those pieces of information to the current
case. This is why we’ve seen massive investments
across multiple industries to apply a more
advanced AI approach to business practices.
NexLP.com | info@nexlp.com
17. “What will happen in this future that I’m
predicting, is that new business models
and revenue streams will emerge. Law
firms, accounting firms, consulting firms,
etc., will start to take these artificial
intelligence models that they’ve built and
be able to offer them up as subscription
services directly to their clients. They’ll be
able to take their expertise and embed
that directly in their client's office.”
- NexLP CEO Jay Leib
NexLP.com | info@nexlp.com