Peer to Peer Magazine

42 at an expectation of what they may contain, but do not analyze the full document set as it is too expensive. AI allows you to transform this process, enabling you to automatically extract key content from all the documents you are reviewing, use this extracted content to assemble tables for use in new legal documents, and identify content exceptions that require manual review of a document. In doing so you can transform this process from one that is expensive and error prone, to one which can be 60-75 percent less expensive, while also producing better quality results and lower risk than manual review alone. Another benefit? Transformed processes tend to eliminate low-level cognitive tasks – the grunt work – that many legal associates hate. Associates' work now becomes higher level and more about the law than about finding and validating content and documents. Associate satisfaction goes up as they do more lawyering and less grunt work, and achieve better work-life balance. Phase 3 - Digital Disruption: Those organizations that find new ways of delivering customer value – by analyzing customer data, and by doing that well – earn the opportunity to reshape an entire market. Netflix started by shipping DVDs, transformed the value and price of its service by moving to streaming, and then transformed again by analyzing user behavior to disrupt the industry by sourcing new content and creating original shows that users are more likely to enjoy, based on their demonstrated preferences. Those law firms that pursue transformation aggressively and uncover ways to deliver more value to clients using advanced analytics and other technologies will similarly get a chance to define whole new ways of working – and reap the benefits in terms of market share and profitability. You can begin to see hints of this emerging, as established leaders bring entirely new services to market. Allen & Overy, for example, has announced a new service for clients to manage initial margin requirements on ISDA (derivatives) agreements. This is an example of a law firm combining market data and technolo to automate a difficult business problem for its clients in a new and innovative way – and other ground-breaking offerings like this are starting to appear from several large and mid- sized law firms. For those who are not yet on this path, the risks are significant. Disruptive new legal services that offer higher value at a dramatically lower cost are difficult to compete with using traditional approaches. Trying to "follow the leaders" does not work very well in the digital domain, as leaders quickly win market share positions that make them very difficult to unseat. In this new world, first movers have a huge advantage. The question is, will you be a first mover? The legal community has for years been talking about changing – but has still stayed pretty much the same. What is different now is that digital technologies have matured, innovation is sprouting up at many points in the legal services ecosystem, and clients are fed-up and demanding greater security value and innovation from their law firms. In other words, this time it's not just about giving lip-service to change. It's about action – action that uses digital technologies to build the new products and services your firm needs to increase (or at least maintain) its market share. A "business as usual" approach is not safe response to what is happening in the market. Barriers to Transformation Effective transformation requires that you also address several organizational and technological limitations that many law firms face: 1. Firm culture: Law is generally not a place for risk-taking, and digital transformation should not be viewed as risk-taking. It is a data-driven approach to delivering value in more efficient ways. Yet for many firms, the concept of change always raises the question of risk, and that leads many firms to delay adoption of new ways Those law firms that pursue transformation aggressively and uncover ways to deliver more value to clients using advanced analytics and other technologies will similarly get a chance to define whole new ways of working – and reap the benefits in terms of market share and profitability.

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