Peer to Peer Magazine

P E E R T O P E E R : I L T A ' S Q U A R T E R L Y M A G A Z I N E | F A L L 2 0 1 9 23 brain is biased, our operational capacity is limited, and our memory is finite, whereas, with the power of AI, we can utilize unlimited operational capacity. The machine never gets tired, we get infinite memory, and the unbiased decisions it can make by analyzing and learning from millions of data points is something we can never do. Now before we dive further into the benefits of AI, it's important to acknowledge a somewhat uncomfortable reality—lawyers are notoriously late to information technolo (IT) adoption. While there's been a long- standing reticence to embrace new IT, this hesitation seems to have increased since the post-2008 Lehman crash era because large corporate customers are now even more focused on cost-cutting. These days, Legal also has more work to do given increased regulation; there simply is no time to learn new technolo. But implemented correctly, AI can overcome obstacles to technolo deployment and adoption. Intuitive, user-friendly platforms are helping services buyers find and engage with service providers that meet their exact engagement criteria—including among many things—making available a diverse and inclusive workforce. There is a definite role for AI to play in helping companies not only choose appropriate new providers but also influence and drive incumbents toward becoming more inclusive and diverse teams themselves. Additionally, indirect procurement spend and processes have long been neglected in large organizations, but now are being increasingly scrutinized by CFOs. There is a focus on taking some of the "fat" out of spending—and that includes legal spend. AI potentially changes this landscape, not only by introducing enhanced "smartness" into the whole process of how services procurement is done but also utilizing the learning derived from the data points involved to affect future outcomes. How Does It Work? AI and ML allow extremely precise project scoping, qualified service provider matching, and streamlined proposal submissions while eliminating the need for traditional RFPs. They also offer an alternative to the traditional "panel" system of providers, which some argue stifles innovation and change. In particular, there are three phases of the services procurement process where AI can now help: (1) facilitating meticulous project scoping, (2) enabling rapid and exact matching of requirements to qualified service providers, and (3) selecting the best fit provider through streamlining proposal submission. That means that AI can be used to build D&I into each phase. For instance, a system could be automated for creating a "smart" brief that allows users to specify extremely specific criteria regarding what they're looking for in a service provider. Every search for every project could be unique. So to increase engagement with more diverse providers, an AI-based system could be configured to ask if a firm has any D&I criteria formalized in its hiring practices. It could ask if the firm has any certifications, such as being a Small Woman-Owned Business, a Veteran-Owned Business or some other minority status. The platform could ask how a firm has been demonstrating its commitment to D&I over the last six months, year, or two years, or if it has been engaging with any diverse third- party service providers itself. With AI, you can get as granular as you like with these and any other criteria. Further, weighting can be applied to these factors to help better qualified providers stand out. Then, by providing unbiased and accurate information, AI can map those requirements to a set of qualified providers so the corporate buyer can compare options "at a glance." This could include new companies for consideration, as well as incumbents. In fact, it provides an excellent incentive for incumbents to keep up to date with their commitment to D&I efforts; if they fall short, the system will stop including them in the list of providers matched to new opportunities. That drives better behavior in a real-time way. In the absence of AI, this is almost impossible, particularly for large companies using many providers across multiple jurisdictions. How Is Legal Already Using AI for Procurement? Currently, general counsels (GCs) and procurement specialists fall in a range of spectrums when it comes to digital transformation. Some are just starting out while others are moving fast on how they can leverage AI for things like sourcing, paying their suppliers, and managing supplier relationships. I know of one multinational company that was delighted with how using an AI platform facilitated easier price comparison among its legal services providers, allowing Intuitive, user-friendly platforms are helping services buyers find and engage with service providers that meet their exact engagement criteria—including among many things—making available a diverse and inclusive workforce.

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