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 | W I N T E R 2 0 1 9 55 We already see an acceptance of machine-based decisions for dispute resolution in low-level disputes with Amazon or eBay. These disputes are resolved by people inputting logic and reasoning into an automated dispute resolution system. People experience a problem, notify the system, and the system determines (within parameters) what will resolve the situation quickly and hopefully the people will continue using the service. So we ask ourselves whether we would prefer to wait a long time for a traditional "perfect" court resolution to a problem or accept something that is ok "now". This will become the norm for an increasingly wide variety of disputes. It may become a separate industry and augment current judicial systems As of July 2019, 56% of the world's population has access to the internet. We are experiencing a rapid and increasing use of digital methods of recording, managing, and exchanging money in commerce, investment and daily life in many parts of the world. Transactions which would historically have been undertaken with cash are often now undertaken electronically. Banks, retailers etc. are adapting to this digital economy. Many businesses are creating only an online presence. While the debate rages as to the merits of a totally cashless society, ignoring the signs is a lost opportunity. Anyone providing legal services to clients who are already fully committed to the digital economy need to examine the changing legal requirements and the technolo changes needed to support these clients. Walter's Kluwer recently announced the release of a new predictive tool which helps clients better estimate future legal costs for litigated matters and make the best choice of law firm for each case. This will increase the pressure on law firms to find ways to differentiate 1 2 3 themselves and provide alternatives to the traditional legal service model. Technolo Change Catalyst? In answer to what technolo will be the catalyst for real change in the legal industry, the answers seem to be in quantum computing and data tools. ILTA's 2019 technolo survey says that the top four technologies or trends the respondents believe will create significant change or be a major factor in the legal technolo profession are Cloud, AI/ML, Automation and Security. Well, Cloud is inevitable. Legal is working hard to make cloud providers accountable. Security becomes more complex every day and we cannot choose to ignore it. Process automation will help law firms catch up with the big four accounting firms. 54% of ILTA respondents said they were not pursuing some type of AI / machine learning option. The reality is that it's a clear minority of just 10% that have "one or more AI/ML tools in production", 25% of respondents are researching the types of tools that you can place under the AI/ML umbrella, and 7% have at least one AI/ML product pilot in place. That's still a big leap from a year ago and is increasing. How soon it will be transformative is the question. Another place AI will start to make a big difference is nations starting to upload all their laws, court rulings, and sited precedents so that an AI system can help or accurately predict the outcome of a dispute, provide justification for an appeal, or notify in advance of an agreement what is clearly safe and or questionable. How soon this will happen is also an unknown but will happen. A more likely short-term disrupter is Quantum Computing. This will soften or possibly blow away today's computing constraints for artificial intelligence while fundamentally transform cybersecurity, and allow us to simulate systems of unprecedented complexity. Google's "quantum supremacy" is able to complete a computation that would normally take 10,000 years on the most powerful supercomputers, in just 200 seconds. Intel recently said it has achieved a milestone toward commercially viable quantum computers with a first-of-its-kind cryogenic control chip. All those things that we think are not yet possible, become so with quantum computing. Less sexy and more of an evolution than a revolution is the continued good use of data tools to transform the practice of law. How many lawyer/data scientists are coming into law firms to help transform the way data is being analyzed? That trend is growing exponentially. ABS & ALSP Disruption? How disruptive will "alternative" business models and legal service providers be to the traditional law firm? The answer there is totally up to each law firm. The legal ecosystem has evolved from one traditional law firm legal service model, to include legal services being provided by the big four Accounting Firms and law firms who have created Captive Legal Process Outsourcing organizations (at least 10 ILTA member firms have done this). Then there are the contract and staffing services firms, such as Axiom, and the Independent Legal Process Outsourcing organizations and the Managed Services companies, plus numerous start-ups and uncategorized companies that provide some level of legal services. All this activity cannot help but disrupt the traditional law firm business model. It's forcing law firms to look at who they partner with and how. Any mature business model directly and indirectly creates opportunities for people to specialize on a segment, create efficiencies and margin, and ultimately deliver a solution that can add value for both the client and the law firm. Law firms moved away from court reporters a long time ago, in- house salaried copy centers, etc. The strategic decisions around who/how/when/why each embraces disruption can be the differentiator. Skills Gap? How will the legal technolo profession be disrupted by the growing skills gap? As automation grows in every part of the workplace, and more complex technologies become the norm, it becomes increasingly

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