The Legal Innovation Agenda - Pre, During and in the Post COVID Era

The Legal Innovation Agenda - Pre, During and in the Post COVID Era

1. @computational professor daniel martin katz danielmartinkatz.com computationallegalstudies.com https://bit.ly/3yxhY2e illinois tech - chicago kent law P R E & P O ST COV I D T H E L E G A L I N N OVAT I O N AG E N DA
3. H A L LO W E E N 2 0 0 8
4. WA S A S CA R Y T I M E
6. A N D I T WA S N ’ T J U ST T H E D E CO R AT I O N S …
8. O R E V E N T H E C E L E B R I TY CO ST U M E S …
9. https://www.buzzfeed.com/whitneyjefferson/heres-what-halloween-looked-like-in-2008
11. I A M S U R E M A N Y O F YO U R E M E M B E R T H AT T H E FA L L O F 2 0 0 8
12. WA S A S CA RY T I M E I N T H E G LO B A L CA P I TA L M A R K E T S
13. T H E H O U S I N G B U B B L E H A D B U R ST …
14. A N D T H E B L A ST S E N T S H O C K WAV E S A R O U N D T H E F I N A N C I A L WO R L D
16. I T WA S B E CO M I N G I N C R E A S I N G LY C L E A R T H E E X T E N T TO W H I C H …
17. B A L A N C E S H E E T S O F M A J O R F I N A N C I A L I N ST I T U T I O N S W E R E E X P O S E D TO A VA R I E TY O F E XOT I C F I N A N C I A L I N ST R U M E N T S
18. M O RTG AG E B AC K E D S E C U R I T I E S C R E D I T D E FAU LT S WA P S CO L L AT E R A L I Z E D D E B T O B L I G AT I O N S
19. N OT J U ST ‘ TO O B I G TO FA I L’ B U T R E A L LY TO O CO N N E C T E D TO FA I L D E O K JA E L E E , JA E -YO U N G K I M , J E H O L E E , A N D B . KA H N G , F O R E ST- F I R E M O D E L A S A S U P E R C R I T I CA L DY N A M I C M O D E L I N F I N A N C I A L SY ST E M S , P H Y S . R E V. E 9 1 , 0 2 2 8 0 6 ( 2 0 1 5 ) https://www.federalreserve.gov/newsevents/ speech/yellen20130104a.htm
20. T H E D E P E N D E N C I E S B E T W E E N F I N A N C I A L I N ST I T U T I O N S S E E E . G . VO D E N S KA I . , B E C K E R A . P. ( 2 0 1 9 ) I N T E R D E P E N D E N C E , V U L N E R A B I L I TY A N D CO N TAG I O N I N F I N A N C I A L A N D E CO N O M I C N E T WO R K S . I N : A B E R G E L F. , E T. A L . ( E D S ) N E W P E R S P E C T I V E S A N D C H A L L E N G E S I N E CO N O P H Y S I C S A N D S O C I O P H Y S I C S .
21. O F F E R E D T H E P R O S P E C T O F A CA S CA D E O F FA I LU R E S A M O N G F I N A N C I A L I N ST I T U T I O N S
22. S E P T E M B E R 7 : T R E A S U RY N AT I O N A L I Z E S FA N N I E A N D F R E D D I E S E P T E M B E R 1 5 , 2 0 0 8 : L E H M A N B R OT H E R S B A N K R U P TCY T R I G G E R E D G LO B A L PA N I C S E P T E M B E R 1 6 , 2 0 0 8 : F E D B U Y S A I G F O R $ 8 5 B I L L I O N S E P T E M B E R 2 6 , 2 0 0 8 : WA M U G O E S B A N K R U P T S E P T E M B E R 2 9 , 2 0 0 8 : STO C K M A R K E T C R A S H E S A S B A I LO U T R E J E C T E D O C TO B E R 7 , 2 0 0 8 - $ 1 . 7 T R I L L I O N CO M M E R C I A L LOA N P R O G R A M O C TO B E R 8 A N D 1 4 , 2 0 0 8 : C E N T R A L B A N K S CO O R D I N AT E G LO B A L AC T I O N O C TO B E R 2 1 , 2 0 0 8 - F E D L E N D S $ 5 4 0 B I L L I O N TO B A I L O U T M O N E Y M A R K E T F U N D S
24. B U T A S I S O F T E N T H E CA S E …
25. I T WA S N OT C L E A R AT T H E T I M E
26. T H AT T H E R E W E R E OT H E R I D E A S I N P L AY
27. W H I C H S E E N OV E R T H E Y E A R S T H AT WO U L D F O L LO W
28. M I G H T E V E N P R OV E M O R E P I VOTA L
29. A N E W E R A O F F I N A N C E WA S B E G I N N I N G TO DAW N …
30. I N D I R E C T R E S P O N S E TO T H E F I S CA L P O L I CY C H O I C E S O F C E N T R A L B A N K S …
31. B U T I T WO U L D B E Y E A R S B E F O R E M O ST F O L K S WO U L D CO M E TO S E E I T …
32. P U B L I S H E D O N M E TZ D O W D. CO M C RY P TO G R A P H Y M A I L I N G L I ST O N O C TO B E R 3 1 , 2 0 0 8
34. N O W H E R E I N L AW L AW L A N D, T H E R E W E R E A L S O S E E D S T H AT W E R E B E I N G S O W N …
35. W H I C H A S T H E AT M O S P H E R I C CO N D I T I O N S C H A N G E D …
36. WO U L D B E G I N TO S P R O U T …
37. B U T I T WO U L D B E Y E A R S B E F O R E M O ST F O L K S WO U L D CO M E TO R E A L LY S E E I T …
38. A N D T H AT W I L L B E O N E T H E M E F O R TO DAY …
40. CA N W E CO N N E C T T H E D OT S ?
41. CA N W E S E E A R O U N D T H E CO R N E R ?
43. SO THIS PRESENTATION IS *NOT* ABOUT THE CONTENT OF ANY PARTICULAR LEGAL RULE …
44. I N ST E A D TO DAY I WO U L D L I K E TO O F F E R A N ACCO U N T O F T H E PAT H T H AT H A S B E E N C H A RT E D
45. TO A F U T U R E ( B E T T E R ) L E G A L I N D U ST RY …
47. I T TA K E S O N A VA R I E TY O F L A B E L S
48. # R E I N V E N T L AW # M A K E L AW B E T T E R # N E W L AW # L P M # L P I # L E G A L D E S I G N # L E G A LT E C H # L E G A L I N N OVAT I O N
49. A N D T H E I D E A S A R E E V E N B R OA D E R T H A N J U ST L AW
50. Fin (Legal) Tech Finance Technology Law Law of Tech Legal Tech Fin Tech Finance for Law Law of Finance L AW, F I N A N C E , T E C H N O LO GY T E N D TO CO - M OV E OV E R T H E M E D I U M TO LO N G T E R M
51. AND OF COURSE REGTECH DEALTECH FINTECH INSURTECH GOVTECH ARE ALSO ADJACENT (AND SIMILAR AT THE MARGINS)
53. B U T I T C E N T E R S A R O U N D T H O S E W H O H AV E C H O S E N TO ‘ WO R K D I F F E R E N T LY ’
55. SO TODAY I WILL BEGIN BY TRYING TO DEFINE ‘THE LEGAL INNOVATION AGENDA’
56. THEN I WILL TRACE THIS AGENDA THROUGH THREE PHASES …
57. PRE COVID POST COVID DURING COVID 2009 - 2019 2023* - 2030 2020 - 2022* *HOPEFULLY
59. WHAT IS THE LEGAL INNOVATION AGENDA ?
60. WHAT IS THE SCOPE OF THE LEGAL INNOVATION AGENDA ?
61. L AW I N N N OVAT I O N ∩ I N T E R S E C T
62. L AW + I N N OVAT I O N H A S B E E N U S E D TO M E A N S E V E R A L D I F F E R E N T T H I N G S
63. Antoine Masson Gavin Robinson Editors Mapping Legal Innovation Trends and Perspectives Masson · Robinson Eds. Mapping Legal Innovation Antoine Masson · Gavin Robinson Editors Mapping Legal Innovation Trends and Perspectives The legal sector is being hit by profound economic and technological changes (digitalization, open data, blockchain, artificial intelligence ...) forcing law firms and legal departments to become ever more creative in order to demonstrate their added value. To help lawyers meet this challenge, this book draws on the perspectives of lawyers and creative specialists to analyze the concept and life cycle of legal innovations, techniques and services, whether related to legislation, legal engineering, legal services, or legal strategies, as well as the role of law as a source of creativity and interdisciplinary collaboration. ISBN 978-3-030-47446-1 9 7 8 3 0 3 0 4 7 4 4 6 1 DA N I E L M A RT I N KATZ , L E G A L I N N OVAT I O N ( B O O K F O R WA R D ) I N M A P P I N G L E G A L I N N OVAT I O N : T R E N D S A N D P E R S P E C T I V E S ( S P R I N G E R ) ( A N TO I N E M A S S O N & G AV I N R O B I N S O N , E D S . ) ( 2 0 2 1 )
64. T H I S B R A N C H CA N B E S U B D I V I D E D
65. L AW Y E R S F O R I N N OVATO R S L AW Y E R S A S D O C T R I N A L I N N OVATO R S L AW F O R I N N OVAT I O N
66. L AW Y E R S F O R I N N OVATO R S
67. L AW Y E R S F O R I N N OVATO R S L AW Y E R S W H O R E P R E S E N T I N N OVATO R S A N D P R OV I D E S E RV I C E S S U C H A S T H E F O L LO W I N G …
68. L AW Y E R S F O R I N N OVATO R S L AW Y E R S W H O R E P R E S E N T I N N OVATO R S A N D P R OV I D E S E RV I C E S S U C H A S T H E F O L LO W I N G … I N T E L L E C T UA L P R O P E RTY B U S I N E S S F O R M AT I O N L A B O R / E M P LOY M E N T R E G U L ATO R Y CO M P L I A N C E E TC . CA P I TA L M KT S / M & A
70. L AW Y E R S A S D O C T R I N A L I N N OVATO R S L AW Y E R S W H O H E L P S H A P E T H E ‘ PAT H O F T H E L AW ’ A S I T T R I E S TO A DA P T TO N E W C I R C U M STA N C E S
71. L AW Y E R S A S D O C T R I N A L I N N OVATO R S P O I S O N P I L L - “ T H E M O ST I M P O RTA N T I N N OVAT I O N I N CO R P O R AT E L AW S I N C E S A M U E L CA LV I N TAT E D O D D I N V E N T E D T H E T R U ST F O R J O H N D. R O C K E F E L L E R A N D STA N DA R D O I L I N 1 8 7 9 ” R O N A L D G I L S O N CO LU M B I A L AW S C H O O L
72. M O R E B R OA D LY T H E R E A R E C U R R E N T E X A M P L E S O F S U B STA N T I V E L E G A L I N N OVAT I O N I N W I D E VA R I E TY O F D O M A I N S …
73. L AW Y E R S A S D O C T R I N A L I N N OVATO R S C RY P TO, 3 D P R I N T I N G , D R I V E R L E S S CA R S , M E TAV E R S E , DATA B R E AC H , DATA P R I VACY, D R O N E S , I N T E R N E T O F T H I N G S , SY N T H E T I C B I O LO GY, E TC .
75. I T S H O U L D A L S O B E N OT E D T H AT S U C H I D E A S CA N E X I ST AT T H E L E V E L O F A J U R I S D I C T I O N
76. “ M O R E T H A N 6 6 % O F T H E F O RT U N E 5 0 0 H AV E C H O S E N D E L AWA R E A S T H E I R L E G A L H O M E ” B A I N B R I D G E , ST E P H E N M . , I M A N A N A B TAW I , S U N G H U I K I M , A N D JA M E S PA R K , E D S . CA N D E L AWA R E B E D E T H R O N E D ? : E VA LUAT I N G D E L AWA R E ' S D O M I N A N C E O F CO R P O R AT E L AW. CA M B R I D G E U N I V E R S I TY P R E S S , 2 0 1 8 . https://corp.delaware.gov/aboutagency/
77. H T T P S : / / S L AT E . CO M / T E C H N O LO GY / 2 0 2 1 / 0 6 / W YO M I N G - C RY P TO C U R R E N CY- L AW S . H T M L H T T P S : / / W W W. F O R B E S . CO M / S I T E S / CA I T L I N LO N G / 2 0 1 9 / 0 3 / 0 4 / W H AT- D O - W YO M I N G S - N E W- B LO C KC H A I N - L AW S - M E A N H T T P S : / / W W W. M A R K E T WATC H . CO M / STO RY / H O W- W YO M I N G - B E CA M E -T H E - P R O M I S E D - L A N D - F O R - B I TCO I N - I N V E STO R S - 1 1 6 1 9 2 0 1 1 8 2 W YO M I N G A S K I N G O F C RY P TO ?
78. O R AT T H E L E V E L O F A N E N T I R E CO U N T R Y
79. L AW A S A N E X P O RT A S S E T O F A CO U N T R Y
80. https://www.ft.com/content/e2e3c1e2-1e5c-4341-9901-d45aad16ab7b “There is another platform which sits hidden within nearly every piece of infrastructure in the UK economy — and many beyond our borders. It is called English law. English law is an asset of enormous value. It underpins the UK’s place at the heart of a number of global markets, among them those for derivatives, commodities, energy and trade finance. English law is selected because it is trusted to deal with complex outcomes in a fair manner; this trust is taken for granted.”
81. “Due to the globalisation and digitisation of business models, an increasing proportion of transactions and contracts are now internationally mobile—i.e. their governing law and the jurisdiction to which they are subject are chosen by those transacting based on their attractiveness to those parties. Historically, English law has been a popular choice of governing law for many types of internationally mobile transactions. In 2019, it governed around £250bn of global mergers and acquisitions, and 40% of global corporate arbitrations. The most successful platforms of the 21st century have been digital platforms, and their value is directly related to the size of their user base. However, English law suffers from a market failure known as the free-rider problem where no entity acts as the ‘platform operator’ to grow the user base of English law and maximise the benefits. Such a ‘platform operator’ should invest in growing the user base and consider how to monetise the value of the platform. This can be delivered through a combination of technological, judicial, professional and industry expertise, alongside government involvement.”
82. T H I S I S PA RT O F W H AT I S G O I N G O N H E R E …
83. https://35z8e83m1ih83drye280o9d1- wpengine.netdna-ssl.com/wp-content/uploads/ 2019/11/6.6056_JO_Cryptocurrencies_Statement _FINAL_WEB_111119-1.pdf https:// www.lawgazette.co.uk/ law/cryptoassets-and- smart-contracts-valid-in- english-law/5102211.article
84. B U T I T I S N OT J U ST T H E U K W I T H T H I S S O RT O F A N I N D U ST R I A L ST R AT E GY …
85. https://www.difccourts.ae/ “The Dubai International Financial Centre (DIFC) is designed to be a financial free zone offering a unique, independent legal and regulatory framework in order to create an environment for growth, progress and economic development in the UAE and the wider region.”
86. S I N G A P O R E A S A G LO B A L H U B F O R A R B I T R AT I O N http://www.arbitration.qmul.ac.uk/research/2018/ “The 2018 Queen Mary University of London and White & Case International Arbitration Survey ranked Singapore as the third most preferred international arbitration seat in Asia seat (and 3rd Globally)”
88. I S A V E R Y VA L I D A N D WO RT H W H I L E TO P I C … B U T * N OT * T H E F O C U S O F T H I S P R E S E N TAT I O N L AW F O R I N N OVAT I O N
89. I N N OVAT I O N F O R L AW
90. I N N OVAT I O N F O R L AW
91. S O YO U M I G H T S AY W H Y I S T H E R E A N E E D F O R “A L E G A L I N N OVAT I O N AG E N DA” ?
92. I F W E O B S E RV E T H E L E G A L I N D U ST R Y F R O M A H I STO R I CA L ( E V E N C U R R E N T ) P E R S P E C T I V E
93. THIS IS A FIELD HISTORICALLY CENTERED AROUND SUBJECT MATTER EXPERTISE ALONE
94. AND *NOT* FOCUSED ON OPERATIONAL EXCELLENCE
95. THE LEGAL INNOVATION AGENDA IS ABOUT BRINGING OPERATIONAL EXCELLENCE TO LAW
97. W H E T H E R I T I S A L A R G E CO R P O R AT I O N O R A N I N D I V I D UA L S E E K I N G TO N AV I G AT E A L E G A L P R O C E S S
98. I T H I N K T H E * E N D U S E R S * O F L AW A R E N OT S AT I S F I E D
99. W I T H CA L I B E R O F T H E O F F E R I N G …
100. A N D A M O N G S O M E I N T H E L AW WO R L D T H E R E I S D E N I A L A N D R AT I O N A L I Z AT I O N
101. A N D O F CO U R S E S O M E CO M P L A I N T S A R E M O R E VA L I D T H A N OT H E R S
102. TO O E X P E N S I V E TO O T I M E CO N S U M I N G U N C L E A R N OT F I T F O R P U R P O S E I N 2 1 ST C E N T U RY
104. G I V E N T H E CO M M E R C I A L L AW N AT U R E O F T H I S P R E S E N TAT I O N
105. I W I L L F O C U S M O R E O F M Y AT T E N T I O N O N T H E E N T E R P R I S E S P H E R E …
106. F R O M A G LO B A L P E R S P E C T I V E M U C H CA N B E S A I D A B O U T T H E G E N E R A L D E L I V E RY O F J U ST I C E # A 2 J # ACC E S STOJ U ST I C E
108. B U T R E A L LY W H AT I S AT T H E CO R E O F T H E N E E D F O R “A L E G A L I N N OVAT I O N AG E N DA” ?
109. WELL LET’S START WITH THIS QUESTION …
110. WHAT IS THE DEMAND DRIVER FOR ‘UNITS OF LEGAL PRODUCTION’?
111. COMPLEXITY AND (LEGAL) RISK MANAGEMENT
112. SOCIAL, ECONOMIC AND POLITICAL COMPLEXITY
113. MANIFESTS ITSELF IN OUR DOMAIN AS LEGAL COMPLEXITY
114. WHILE IT IS SOMEWHAT HARD TO PRECISELY DEFINE …
116. VIRTUALLY EVERY WAY YOU MIGHT CONSIDER IT LEGAL COMPLEXITY HAS GROWN
117. DANIEL MARTIN KATZ, CORINNA COUPETTE, JANIS BECKEDORF & DIRK HARTUNG, COMPLEX SOCIETIES AND THE GROWTH OF THE LAW, 10 SCIENTIFIC REPORTS 18737 (2020) HIGHLIGHTS GROWTH IN STATUTORY COMPLEXITY IN USA + GERMANY
118. HIGHLIGHTS GROWTH IN REGULATORY COMPLEXITY IN USA + GERMANY CORINNA COUPETTE, JANIS BECKEDORF, DIRK HARTUNG, MICHAEL BOMMARITO, & DANIEL MARTIN KATZ, MEASURING LAW OVER TIME: A NETWORK ANALYTICAL FRAMEWORK WITH AN APPLICATION TO STATUTES AND REGULATIONS IN THE UNITED STATES AND GERMANY, FRONT. PHYS. (2021)
120. SO THE QUESTION IS HOW TO MATCH THAT COMPLEXITY WITH THE APPROPRIATE
121. BUNDLES OF TOOLS AND (EXPERT) PEOPLE
122. BECAUSE THE LEGACY MODEL HAS BEEN
123. HIGH PRICE LABOR TO SOLVE HIGH COMPLEXITY PROBLEMS
124. BUT THAT DOES NOT REALLY WORK
125. FROM BOTH A PRACTICAL AND AN ECONOMIC STANDPOINT …
126. WE ARE IN PROGRESS
127. ON A PRODUCTIVITY REVOLUTION IN LAW
128. TO MEET THE CHALLENGES OF THE 21ST CENTURY
130. M U C H CO U L D B E S A I D A B O U T E AC H O F T H E S E A S P E C T S O F T H E L E G A L I N N OVAT I O N AG E N DA
131. A N D C E RTA I N LY A N A LT E R N AT I V E G R O U P I N G / TA XO N O M Y CO U L D B E P O S I T E D
132. FOUR THEMES IN LEGAL INNOVATION
133. FOUR THEMES IN LEGAL INNOVATION LEVERAGING DATA AND A.I. TECHNIQUES TO CREATE LEGAL TECH SOFTWARE #LEGALDATA #LEGALAI #LEGALNLP #1
134. FOUR THEMES IN LEGAL INNOVATION USING PROCESS IMPROVEMENT AND PROJECT MANAGEMENT METHODS TO STREAMLINE LEGAL WORK FLOWS #LEAN #SIXSIGMA #LPM #LPI #PROCESSENGINEERING #2
135. FOUR THEMES IN LEGAL INNOVATION SOURCING LEGAL TALENT AND SOLUTIONS FROM A MUCH WIDER SET OF PROVIDERS #LAWCOMPANY #ALSP #BIG4 #LPO #OUTSOURCING #INSOURCING #3
136. FOUR THEMES IN LEGAL INNOVATION TREATING LEGAL RISK MANAGEMENT AS RISK MANAGEMENT / SOLVING LEGAL INDUSTRY ACCESS TO CAPITAL CHALLENGES #LITFUNDING #LAW=FINANCE #EXOTICFINANCE #LEGALRISKMGMT #4
137. FOUR THEMES IN LEGAL INNOVATION AI / DATA / SOFTWARE DESIGN / PROCESS SOURCING OF LEGAL WORK LAW < — > FINANCE
138. S O T H AT I S T H E B R OA D C H A R AC T E R I Z AT I O N O F T H E L E G A L I N N OVAT I O N AG E N DA
140. N O W B AC K TO O U R STO R Y …
141. THE LEGAL INNOVATION AGENDA
146. A S T H E I N T R O H I G H L I G H T S O U R STO RY STA RT S H E R E …
148. W H I L E T H I S I S N OT T H E B E G I N N I N G O F A L L O F T H E S E I D E A S
149. T H I S WA S T H E B E G I N N I N G O F S O CA L L E D # N E W L AW
150. A LT H O U G H P L E N TY O F F O L K S H A D I D E A S A B O U T H O W TO # R E I N V E N T L AW
151. I T WA S T H E C H A N G E S I N B U Y E R B E H AV I O R W H I C H G AV E L I F E TO T H E # N E W L AW U P STA RT S …
152. E N O U G H OX YG E N TO S U STA I N L I F E
153. W H E R E E CO N O M I C ‘ L I F E ’ H E R E WA S E N O U G H A D O P T I O N TO A L LO W T H E M TO P R O C E E D TO 2 0 1 0 A N D B E YO N D …
155. STARTING IN THE AFTERMATH AND CARRYING INTO THE 2010’S
156. THE 2010’S WERE THE DECADE WHERE LEGAL TECH LEGAL INNOVATION CAME OF AGE …
158. ALTHOUGH ROBOT LAWYERS DOMINATED THE HEADLINES …
160. NOT ONE SINGLE DISRUPTOR PER SE
161. BUT IT WAS A SERIES OF TRENDS
162. THAT HIGHLIGHTED THE DECADE IN LEGAL TECH + INNOVATION
164. #LegalTech Comes of Age
165. WHILE THERE WAS CERTAINLY LEGALTECH PRIOR TO 2010 …
166. THE 2010’S SAW #LEGALTECH GO FROM THE HACKER COMMUNITY
168. https://legalhackers.org
169. TO THE MAINSTREAM LEGAL INDUSTRY …
171. IN THE 2010’S WE SAW SIGNIFICANT GROWTH IN THE SHEER NUMBER OF #LEGALTECH STARTUPS …
172. THERE ARE A VARIETY OF DIFFERENT LISTS
173. tech.law.stanford.edu STANFORD CODEX LIST ~1800+ COMPANIES
174. LEGALTECH WENT GLOBAL BEYOND US + UK
175. FINLAND LEGAL TECH RUSSIAN LEGAL TECH
176. AUSTRIAN LEGAL TECH SWISS LEGAL TECH
177. BELGIUM LEGAL TECH DUTCH LEGAL TECH
178. FRENCH LEGAL TECH ESTONIA LEGAL TECH
179. SPANISH LEGAL TECH 122+ COMPANIES AS OF 2019
180. AUSTRALIA LEGAL TECH ISRAEL LEGAL TECH https://techlaw.co.il/en/
181. BRAZIL LEGAL TECH MEXICO LEGAL TECH
182. ARGENTINA LEGAL TECH PERU LEGAL TECH
184. MORE BROADLY IN ASIA
185. https://lawgazette.com.sg/practice/tech-talk/legaltech-strategies-for-singapore-law-firms/ MORE BROADLY IN ASIA
186. MORE BROADLY IN ASIA https://bit.ly/solia2020
187. AFRICAN LEGAL TECH http://legaltechafrica.co/startups/
188. AS THE 2010’S PROCEEDED IT BECAME ALOT EASIER TO RAISE VC MONEY
192. THE VAST MAJORITY OF #LEGALTECH PRODUCTS PURPORT TO LEVERAGE ARTIFICIAL INTELLIGENCE (AI)
193. THIS IS A LARGE TOPIC WORTHY OF A TALK ON ITS OWN …
194. SO I THINK I WOULD SEND YOU TO THESE
195. https://www.slideshare.net/Danielkatz/ artificial-intelligence-and-law-a-primer https://www.slideshare.net/Danielkatz/ machine-learning-as-a-service-mlaas- open-source-and-the-future-of-legal- analytics-by-daniel-martin-katz- michael-j-bommarito-ii
196. BUT I WOULD MENTION THAT THERE HAS BEEN REAL GROWTH WITHIN THE AI + LAW ACADEMIC COMMUNITY
197. AND A VERY WIDE SET OF POTENTIALLY ADDRESSABLE USE CASES (NOT ALL OF WHICH HAVE BEEN COVERED SO FAR)
199. IN THE 2010’S VARIOUS LAW FIRMS CREATED SOME SORT OF A #LEGALTECH ENGAGEMENT FRAMEWORK(S)
215. #LegalOps Emerges
216. WHILE OF COURSE LEGAL OPERATIONS EXISTED PRIOR TO 2010
217. IN THE 2010’S WE SAW SIGNIFICANT INCREASE IN OPERATIONS PROFESSIONALS
218. INCLUDING OF COURSE CLOC
222. MANY ORGANIZATIONS BEGAN THEIR LEGAL OPS JOURNEY IN THE 2010’S
223. THIS WAS SORT OF FIRST WAVE OF IMPOSING SOME LEVEL OF OPERATIONAL DISCIPLINE
224. AND WRESTLING CONTROL OF THE SUPPLY CHAIN AWAY FROM THE TRADITIONAL PROVIDERS
226. OVERALL IN THE 2010’S
227. IT IS FAIR TO SAY THAT THE LEGAL SUPPLY CHAIN WAS FINALLY DISRUPTED
228. MANY MORE PLAYERS ENTER THE MARKET …
229. WHAT WAS ONCE LARGELY A DECISION OF LAW FIRM A LAW FIRM B
230. GIVES WAY TO A SERIES OF PLAYERS … LAW FIRM BIG 4 LAW COMPANIES LEGALTECH INSOURCING
231. WHETHER DIRECTED INTERNALLY BY CORPORATE COUNSEL, LEGAL OPS OR EVEN PROCUREMENT …
232. OR ASSEMBLED BY OUTSIDE FIRMS AND/OR VENDORS
233. WE ARE ALL TRYING TO BECOME LAW COMPANIES
234. WE ARE ALL TRYING TO BUILD OPTIMAL {PRODUCT, SERVICE} BUNDLES FOR VARIOUS LEGAL / BUSINESS PROBLEMS
236. AND ONE OF THOSE WAYS TO SUPPORT THE OPTIMIZATION IS BY THREADING THE {PRODUCT, SERVICE} TOGETHER WITH A PROCESS MAP
237. WE SAW #LPM #LPI BEGIN TO MAKE INROADS IN THE 2010’S
238. LEAN, SIX SIGMA AND OTHER PROCESS IMPROVEMENT METHODOLOGIES
239. WITH RESPECT TO A GIVEN LEGAL PROCESS THERE IS OFTEN A SIGNIFICANT SPREAD
240. THE PROCESS MAP
241. http:// www.seyfarth.com/ dir_docs/ publications/ LITDecJan2014LeanS ixSigma.pdf
244. I HAVE LEARNED A TREMENDOUS AMOUNT FROM OUR COURSE ON LEGAL PROCESS IMPROVEMENT LEGAL PROJECT IMPROVEMENT
245. THANKS TO OUR COLLEAGUES FROM SEYFARTH !
247. WHAT ABOUT THE FINANCIAL SIDE OF LEGAL INNOVATION?
248. IN THE 2010’S LAW FIRMS INCREASING TRIED TO FIGURE OUT (SLOWLY) HOW TO TRANSITION THEIR BUSINESS MODEL
249. IN THE 2020’S SOME OF THE FIRMS ARE ACTUALLY GOING TO GET REALLY GOOD AT THE {PRODUCT, SERVICE} BUNDLE
250. I THINK THIS WILL LEAD TO A PUSH FOR CAPITAL …
251. AND BE THE DRIVER FOR MORE AND MORE FIRMS TO DO SOME FORM OF PUBLIC (AIM) LISTING
253. 2018 Revenue of £236m and a Valuation of £366m = ~1.6x times Revenue MARCH 2019
254. COMING SOON ?
256. SPEAKING OF FINANCIALIZATION THERE WERE MANY EFFORTS IN THE 2010’S WHICH TREATED
257. LAW AS FINANCE ( insurance as well )
258. https://www.ozy.com/the-new-and-the-next/why- artificial-intelligence-might-replace-your-lawyer/75435/
259. LAW AS INSURANCE
260. https://www.wsj.com/articles/hidden- in-plain-sight-a-powerful-way-to- beat-the-market-1497367597 FT Big Read Feb 7, 2019
261. LITIGATION FUNDING
262. LITIGATION FUNDING (SIGNIFICANT RETURNS NOTWITHSTANDING THE MUDDY WATERS SHORT ATTACK)
263. https://computationallegalstudies.com/ 2017/10/24/10-legal-tech-lessons-dollars- doughnuts-fin-legal-tech-via-aba-journal/ https://www.youtube.com/watch? v=nBeL6MBzSY8 Fin Legal Tech Lecture Bucerius Law School 2017 2018 Fin Legal Tech Conference Illinois Tech - Chicago Kent Law School
265. Law.edu (slowly) tries to adapt ?
266. I SPEND MUCH OF MY TIME IN LAW.EDU WHICH HAS ALL OF THE HEADWINDS OF CHANGE WE SEE IN THE REST OF LAW
267. BUT ALSO
268. ACTUAL LIFETIME TENURE … IN THE HANDS OF THE DECISION MAKERS
269. OBVIOUSLY THAT IS NOT A RECIPE FOR RAPID INNOVATION
270. IF WE COULD ONLY START OVER … https://www.slideshare.net/Danielkatz/the-mit- school-of-law-presentation-version-102-101411 Daniel Martin Katz, The MIT School of Law? A Perspective on Legal Education in the 21st Century, 2014 Illinois Law Review 1431 (2014)
271. NOTWITHSTANDING
272. THERE HAVE BEEN SOME NOTABLE EFFORTS TO INJECT LEGAL INNOVATION INTO LEGAL EDUCATION
273. HERE ARE JUST A FEW IN WHICH I AM INVOLVED…
274. POLYTECHNIC LEGAL EDUCATION
277. SUMMARY OF THE PRE-COVID ERA
278. THESE ARE JUST SOME OF THE ASSOCIATED EFFORTS TO #MAKELAWBETTER OVER THE 2010’S
279. I JUST WANT TO REMIND EVERYONE IF I TOLD THEM IN 2010 BY THE END OF THE DECADE …
280. WE WOULD HAVE ~2000 LEGAL TECH COMPANIES ACROSS THE WORLD A BUNCH OF LAW FIRMS WOULD HAVE TECH INCUBATORS LEGAL OPS WOULD GROW EXPONENTIALLY TOP 25 BRITISH LAW FIRM WOULD BE LISTED A NUMBER OF LAW SCHOOLS WOULD HAVE PROGRAMS, CERTIFICATES AND DEGREES IN LEGAL INNOVATION
281. ALMOST NO ONE WOULD HAVE BELIEVED EVEN ONE OF THESE THINGS WOULD OCCUR …
282. AND THEY ALL HAPPENED ….
284. THE LEGAL INNOVATION AGENDA THE COVID ERA
286. THE LEGAL INNOVATION AGENDA WAS COOKING …
287. PROGRESS WAS SLOWLY BUT SURELY BEING MADE …
288. AND THEN THE WORLD SHUT DOWN …
290. CHINA
291. ITALY
292. NYC
293. EVERYWHERE BY MARCH 2020
294. SOME COUNTRIES WERE EARLY TO SHUT DOWN https://www.weforum.org/ agenda/2020/03/singapore- response-contained- coronavirus-covid19-outbreak AND SOME UNFORTUNATELY WAITED TOO LONG
296. AND IN EVEN DISCUSSING THIS I WANT TO ACKNOWLEDGE
297. THAT MANY FOLKS AROUND THE WORLD LOST FRIENDS AND FAMILY MEMBERS IN THIS CRISIS …
298. AND IT IS NOT OVER YET …
300. BUT PANDEMICS DO EVENTUALLY END … https://www.bbc.co.uk/news/resources/idt-876f42ae-5e44-41c0-ba2d-d6fd537aadfe
301. AND EVEN IF THERE ARE ADDITIONAL CHAPTERS TO THE STORY
302. THIS TOO SHALL PASS …
303. THE QUESTION AT HAND IS TO THINK ABOUT THE WORLD AS IT WILL BE THEREAFTER …
304. AND TO SUPPORT THAT I WOULD LIKE TO SUMMARIZE SOME OF THE THEMES THAT APPEAR TO BE EMERGING …
306. SHORT TERM VS MEDIUM TERM IN DISCUSSING THE COVID ERA, LETS CONSIDER …
307. EARLY DAYS OF THE COVID ERA (SHORT TERM)
308. SHORT TERM MARKET CHAOS OIL FUTURES TURN NEGATIVE STOCK MARKET CIRCUIT BREAKERS ARE TRIPPED S&P GOES UNDER 2300
309. CORPORATIONS HOARD CASH SHORT TERM CORPORATE LEGAL FACES BUDGET CUTS
310. LAW FIRMS CUT STAFF, ROLL BACK SALARIES, IMPOSE HIRING FREEZES AND HOARD CASH SHORT TERM
311. WHILE NOT TYPICALLY REPORTED IN THE LEGAL MEDIA SHORT TERM MANY LEGAL TECH STARTUPS ARE UNDER EXTREME PRESSURE AS CASH TIGHTENS
313. FOR MANY LAWYERS, THE EARLY DAYS OF THE PANDEMIC
314. WERE AN EXERCISE IN CRISIS LAWYERING …
315. FORCE MAJEURE
316. POLICY/PROCEDURES FOR WORK AT HOME
317. OVERNIGHT WE MOVED TO ONLINE COURTS
318. MANY INDIVIDUALS AND ORGANIZATIONS STRUGGLED TO TRANSITION TO WORK AT HOME (ON THE FUNNY SIDE )
319. ON THE SERIOUS SIDE, MANY INDIVIDUALS AND ORGANIZATIONS STRUGGLED TO TRANSITION TO WORK AT HOME
321. MEDIUM TERM THEMES IN THE COVID ERA
322. MEDIUM TERM FISCAL STIMULUS QUANTITATIVE EASING == QE INFINITY ? FED FUNDS RATE IS NEARLY ZERO CENTRAL BANKS TAKE ACTION S&P 4600+ 103% INCREASE FROM 03.20.20
323. MEDIUM TERM THE K SHAPED ECONOMIC RECOVERY
324. BIG LAW ULTIMATELY THRIVES IN THE COVID CRISIS MEDIUM TERM
325. RECORD FUNDING IPOS, PE, ETC. MEDIUM TERM
327. THE FINAL HISTORY OF LEGAL INNOVATION IN THE COVID ERA IS YET TO BE DRAFTED …
328. THINGS DO NOT ALWAYS WORK OUT QUITE AS INITIALLY EXPECTED
330. WORK AT HOME ? LEGALTECH CONSOLIDATION LAW FIRMS AS PORTFOLIOS THREE THOUGHTS
331. LAW FIRMS AS PORTFOLIOS
332. “I THINK THERE WAS A LOT OF DOOM AND GLOOM—FIRM CHAIRS SPEAKING TO PARTNERS AND TELLING THEM TO EXPECT 15% TO 25% DECLINES IN PROFITS. AND LO AND BEHOLD, THE YEAR DIDN’T PLAY OUT THAT WAY …”
333. WHAT IS IT ABOUT BIG LAW WHICH ALLOWS MANY TO THRIVE DURING THE PANDEMIC ?
334. A LARGE LAW FIRM IS LIKE A STOCK PORTFOLIO …
335. https://www.thelawlabchannel.com/tim-mohan-a- portfolio-theory-of-law-firm-success DISCUSSING LAW FIRMS AS STOCK PORTFOLIOS
336. AND WHAT DOES YOUR BROKER TELL YOU ?
337. DIVERSIFY YOUR ASSETS (BIG LAW IS PRETTY DIVERSIFIED)
338. ALIGN OR ROTATE YOUR PORTFOLIO TOWARD AREAS THAT ARE GROWING …
339. IN THE EARLY PANDEMIC, PRACTICE AREAS SUCH AS BANKRUPTCY / RESTRUCTURING WORK WERE HOT https://www.mckinsey.com/industries/financial-services/our- insights/covid-19-implications-for-law-firms
340. AFTER THE FISCAL POLICY OF ~0% GLOBAL INTEREST RATES AND MASSIVE STIMULUS …
341. EVERYONE IS OUT THERE CHASING A RETURN … (ASPIRATIONAL INVESTING ? )
342. CAPITAL MARKETS PRACTICE BONANZA … SPAC FRENZY MASSIVE AMOUNTS OF M&A ACTIVITY
343. https://today.westlaw.com/Document/ I3e58e58035b811eb833efae3e6dfd874/View/FullText.html “BOTH THE WELLS FARGO AND CITI REPORTS FOUND THAT THE LARGEST LAW FIRMS ARE SEEING REVENUES RISE FASTER THAN THEIR SMALLER AND MORE REGIONAL COUNTERPARTS” ECONOMIC SUCCESS WAS NOT EVENLY DISTRIBUTED
344. IN THE END, THE BIGGEST OF BIG LAW SEEM TO HAVE WON THE COVID ERA (AT LEAST SO FAR)
346. LEGALTECH CONSOLIDATION AND FOMO INVESTING
347. LEGAL TECH BUBBLE? (OR THE LOGICAL CONSEQUENCE OF CURRENT MONETARY POLICY?)
348. EVEN PRIOR TO THE COVID CRISIS …
349. CAPITAL MARKETS (VC AND PE) IN PARTICULAR HAVE BEEN PRETTY LOOSE
350. WE SAW MONEY POURING INTO #LEGALTECH
351. https://abovethelaw.com/2019/11/is-there-a-legaltech-vc-bubble/
352. ME IN NOVEMBER 2019
354. NOW ADD TRILLIONS OF DOLLARS TO THE CAPITAL MARKETS AND WATCH INTEREST RATES GO TO ~0%
355. AND WE SEE LOTS OF MONEY CHASING A FINITE NUMBER OF DEALS
356. AND WE SEE SOME EYE POPPING VALUATIONS
357. NOTHING WRONG WITH THE COMPANY … JUST THE VALUATION ~50 BILLION MKT CAP ~1.5 BILLION REVENUE $0 EARNINGS PER SHARE 35X REVENUE
358. BUT WE ALSO SEE THESE SORT OF EYE POPPING NUMBER IN THE VC SIDE OF THIS
359. I AM *NOT* GOING TO NAME INDIVIDUAL COMPANIES …
360. BUT SILICON VALLEY 101 == DONT TAKE TOO MUCH MONEY… #DOWNROUND #LOSSOFCONTROL
361. MOST OF THE VC’S WHO HAVE INVESTED IN LEGALTECH DO NOT HAVE DEEP EXPERIENCE IN THE DOMAIN
362. FOMO LEGAL TECH? https://blog.mobilehelix.com/2021/11/06/we- have-fomo-in-legal-tech-%f0%9f%a6%84/
364. I DO NOT THINK THAT THE AGGREGATE INVESTMENT IS OUT OF LINE
365. BUT I DO HAVE SOME QUESTIONS FOR THE VALUATIONS OF THE INDIVIDUAL COMPANIES
366. MONEY IS GOING TO (EVENTUALLY) GET TIGHT
367. (WHICH IS FINE BY ME BECAUSE IT WILL LEAD TO GREATER DISCIPLINE)
368. STAY TUNED!
370. IN THE MEANTIME, MONEY IS FLOWING AND ACQUISITIONS ARE HAPPENING AT A VERY RAPID PACE …
371. AND THE ROLLUP AND CONSOLIDATION IS GOING TO CONTINUE …
377. ALSP
378. AND OF COURSE NO ONE HAS HAD MORE DEAL FLOW THAN LITERA …
379. POWERED BY PRIVATE EQUITY FIRM HG CAPITAL
380. FOUNDATION SOFTWARE GROUP ALLEGORY DOCSCORP DOXLY BESTPRACTIX KIRA SYSTEMS CONCEP WORKSHARE OBJECTIVE MANAGER CLOCKTIMIZER +1-2 MORE 10+ ACQUISITIONS IN PAST FEW YEARS
381. WE WILL ALL BE WORKING FOR LITERA SOON ;)
383. WORK AT HOME
384. ALMOST OVERNIGHT MOST ORGANIZATIONS (LEGAL OR OTHERWISE)
385. BECAME REMOTE WORK ORGANIZATIONS …
386. AS NOTED EARLIER THE TRANSITION WAS NOT EXACTLY SEAMLESS …
387. BUT AS TIME MOVED FORWARD …
388. FOLKS BEGAN TO FIND THEIR WAY …
389. THE PANDEMIC REVEALED THE ART OF THE POSSIBLE …
391. THE PANDEMIC HAS REFLECTED A HARD RESET IN LIVES OF MANY AT THE PERSONAL LEVEL
392. WHETHER THEY WANTED IT OR NOT - MANY HAD THE OPPORTUNITY TO EXPLORE ANOTHER WAY OF LIVING AND WORKING
393. AND IN THE END IT SEEMS LIKE MANY FOLKS DID LIKE IT …
394. LIFE IS SHORT https://www.2civility.org/the-aba-profile-of-the-legal- profession-explores-covid-19s-lasting-impact/ Some responses from senior lawyers included: “The pandemic ‘made me realize life is short, perhaps I should pull the plug while I can.’” “Because it became more apparent that I could work remotely, I think it has made me more likely to just slow down a bit rather than retire.”
395. AND JUST ABOUT WHEN THERE WAS MAYBE (PERHAPS?) GOING TO BE A ‘RETURN TO OFFICE’
396. MANY ORGS HAD TO EXTEND WORK FROM HOME … (PRECISE DELTA TIMELINE PLAYED OUT DIFFERENTLY ACROSS THE GLOBE …)
398. SO IT SEEMS LIKE THIS IS GOING TO BE DIVIDING POINT IN THE CULTURE OF LAW
401. https://news.bloomberglaw.com/business-and-practice/big- laws-great-resignation-why-i-dont-believe-the-hype
402. https://www.wsj.com/articles/covid-19-law-firm-work-from-home-11628254526
403. VS THE GREAT RESIGNATION AND THE WAR FOR TALENT RETURN TO NORMAL
404. “There is a war for talent and attorneys have more leverage than ever. For most attorneys I speak with, being allowed to work remotely has become critical and, for many, their employer’s impending return-to-office policy is motivating them to make a move. That said, with client demands at an all-time high, law firms have been creative and aggressive when it comes to creating incentives to attract and retain talent (e.g. compensation increases, significant bonuses, and long-term flexible working arrangements).” https://www.natlawreview.com/article/changes-law-firms- are-adopting-amid-covid-19-trends-remote-work-litigation Michelle Fivel, Major, Lindsey, & Africa (A Leading Legal Recruiting Firm)
405. SO THAT BRINGS US AROUND … TO NOW LOOK INTO THE FUTURE
407. THE LEGAL INNOVATION AGENDA THE ‘NEXT’ NORMAL
408. FIVE THEMES FOR THE POST COVID ERA
409. HYBRID ORGANIZATIONS? THE MARCH OF LEGAL COMPLEXITY FROM POINT SOLUTIONS TO ENTERPRISE LEGAL MANAGEMENT PLATFORMS DIGITAL TRANSFORMATION / 4TH INDUSTRIAL REVOLUTION THE FRONTIER IN A.I. / SOFTWARE ECONOMICS ARE CHANGING
411. HYBRID ORGANIZATIONS ? < 1 >
412. AS THE GREAT RESIGNATION GIVES WAY TO MORE STABLE LABOR MARKETS …
413. WHAT WILL BE THE STRUCTURE OF LEGAL LABOR MARKETS ?
414. WHERE WILL THAT WORK TAKE PLACE ?
415. AS LEAST AS OF TODAY … IF IT WERE UP TO INDIVIDUAL LAWYERS …
416. https://news.bloomberglaw.com/bloomberg- law-analysis/analysis-rto-or-work-from- home-surveyed-lawyers-weigh-in
417. I GUESS THE QUESTION IS IF YOU ARE COMPETING FOR TALENT …
418. AND FLEX IS WHAT TALENT WANTS …
419. SOUNDS LIKE YOU BETTER EXPLORE HOW TO MAKE IT HAPPEN …
420. THERE IS THE BUSINESS OPPORTUNITY HERE …
421. PERHAPS IT WILL OR WILL NOT BE IN THE METAVERSE* *NOTE THE METAVERSE IS WIDER SET OF IDEAS THAN JUST THE ONE OFFERED BY FACEBOOK (META)
422. OR MAYBE IN DECENTERLAND …
424. IN THE PRECOVID WORLD, ALSP / LPO / LAW COMPANIES TOOK ADVANTAGE OF THE LACK OF FLEX WITHIN THE BROADER LEGAL INDUSTRY …
425. BUT NOW MANY OTHER ORGS NOW HAVE HAD TO OFFER FLEX … (SOUNDS LIKE ALSP/LPO NEED ANOTHER DIMENSION OF COMPETITION)
426. https://www.mckinsey.com/featured-insights/future-of- work/the-future-of-work-after-covid-19
428. SO HOW TO BUILD OR CONVERT ORGANIZATIONS TO THRIVE IN A WORLD OF INCREASING HYBRID OR REMOTE WORK
429. I BELIEVE COLLABORATION TECHNOLOGIES WILL IMPROVE AS A FUNCTION OF POST COVID INVESTMENTS IN THAT SPACE #COLLABORATIONTECH (MANY OF WHICH HAVE NOT COME TO FRUITION) (AS THE TIME FROM INVESTMENT TO COMMERCIAL LAUNCH TYPICALLY TAKES SEVERAL YEARS - PARTICULARLY IN LARGE ENTERPRISES )
430. TAKE THAT TECH TOGETHER WITH A ECONOMIC MODEL WHICH WOULD ALLOW FOR FLEX WORK ON AT LEAST A HYBRID BASIS …
431. ORGS NEED TO CLEARLY IDENTIFY THE VALUE ASSOCIATED WITH PARTICULAR TASKS BEING CONDUCTED IN PHYSICAL OFFICES …
432. AND MAKE SURE THIS IS ACTUAL USE OF THOSE HOURS / TIMES IN THE OFFICE
433. FOCUS ON BETTER MEASURES OF QUALITY AND PRODUCTIVITY TO HELP …
434. SOLVE FOR THE CONCERNS EXPRESSED BY THOSE WHO SUPPORT FULL TIME IN PERSON …
436. THE MARCH OF LEGAL COMPLEXITY < 2 >
437. I HAVE SPENT LOTS OF TIME STUDYING LEGAL COMPLEXITY
438. THERE IS LITTLE REASON TO BELIEVE THAT MARCH OF LEGAL COMPLEXITY WILL NOT CONTINUE
440. THIS IS GOING TO LEAD TO AN ONGOING NEED TO BUILD {PRODUCT, SERVICE} BUNDLES
441. ARE ECONOMIC SUBSTITUTES FOR LABOR TECHNOLOGY PROCESS IMPROVEMENT BECAUSE IN CRAFTING SOLUTIONS
442. WE WILL CONTINUE TO SEE MORE PROCESS ENGINEERING AND PROJECT MANAGEMENT
443. TO HELP MANAGE LEGAL COMPLEXITY
444. BTW THESE PROCESS MAPS ARE KEY INPUTS IN SOFTWARE DEVELOPMENT
445. CONSULTANTS LITERALLY GO OUT AND DO ‘REQUIREMENTS GATHERING’
446. AND PART OF THAT OUTPUT IS OFTEN SOMETHING AKIN TO A PROCESS MAP …
447. SO I EXPECT A CONVERGENCE BETWEEN #LPM #LPI TALENT AND LEGALTECH TALENT …
448. BTW … SPEAKING OF SOFTWARE
450. THE SHIFTING ECONOMICS OF A.I. / SOFTWARE < 3 >
451. AS A LAW PROFESSOR, I HAVE MET MANY A LAWYER …
452. WHO THINKS THAT THEY HAVE DRAFTED — SAY THE GREATEST CONTRACT KNOWN TO MANKIND
453. AS A TECHNOLOGIST, I HAVE ENCOUNTERED MANY A PROGRAMMER
454. WHO THINKS THAT THEY HAVE DRAFTED — SAY THE GREATEST CODEBASE KNOWN TO MANKIND
456. THERE ARE ECONOMIC CHANGES UNFOLDING IN #AI #ML #TECH
457. HANDCRAFTED CODE VS STANDARDIZED PARTS
458. MACHINE LEARNING AS A SERVICE
459. MACHINE LEARNING AS A SERVICE PAINT BY NUMBERS A.I. ?
460. MACHINE LEARNING AS A SERVICE #MLAAS + ENTERPRISE OPEN SOURCE MOVEMENT #OPENSOURCE
461. ENTERPRISE OPEN SOURCE MOVEMENT WHICH IS A PRE COVID TREND WHICH IS CONTINUING TO MARCH
462. https://techcrunch.com/2019/01/12/how- open-source-software-took-over-the-world/ https://devops.com/how-open-source-software- powers-digital-innovation/
463. Historically one needed to build the full stack (i.e end to end) for an application
464. Unique Domain Specific Offering Off the Shelf #MLaaS, etc. (perhaps with some configuration and/or customization)
465. NOW WHAT ABOUT ON THE TALENT / LABOR SIDE OF THE EQUATION …
466. PAIR PROGRAMMING IS COMMON AMONG DEVELOPERS …
467. WHAT IF YOUR PAIR PROGRAMMER WAS NOT A PERSON ? https://www.linkedin.com/posts/bommarito_statistics- datascience-copilot-activity-6861302897796284416-yzfZ
468. AS THE 2020’S ROLL ON THE ECONOMICS OF CUSTOM CODE WILL CONTINUE TO CHANGE …
469. AND THOSE CHANGES WILL FAVOR CERTAIN TYPES OF TEAMS AND TALENT …
470. AND IT MEANS THAT LEGALTECH IS GOING TO BECOME CHEAPER TO PRODUCE …
471. MY BET IS THAT THE REAL COMPETITION WILL BE ON TEACHING MACHINES THE LEGAL LANGUAGE OF LAW …
472. BECAUSE LAW IS SO LANGUAGE / DOCUMENT CENTRIC
473. WORKED ON THIS BOTH COMMERCIALLY BOMMARITO II, MICHAEL J., DANIEL MARTIN KATZ, AND ERIC M. DETTERMAN, "LEXNLP: NATURAL LANGUAGE PROCESSING AND INFORMATION EXTRACTION FOR LEGAL AND REGULATORY TEXTS." RESEARCH HANDBOOK ON BIG DATA LAW. EDWARD ELGAR PUBLISHING, 2021.
474. AND IN MY ACADEMIC LIFE ILIAS CHALKIDIS, ABHIK JANA, DIRK HARTUNG, MICHAEL BOMMARITO, ION ANDROUTSOPOULOS, DANIEL MARTIN KATZ & NIKOLAOS ALETRAS, LEXGLUE: A BENCHMARK DATASET FOR LEGAL LANGUAGE UNDERSTANDING IN ENGLISH
475. WE ARE ALL WORKING TO TRY BREAK THE LEGAL LANGUAGE BARRIER … :)
477. DIGITAL TRANSFORMATION / 4TH INDUSTRIAL REVOLUTION < 4 >
478. THE WORLD ECONOMIC FORUM CALLS THIS THE ‘FOURTH INDUSTRIAL REVOLUTION’
480. WE WOULD CALL IT THE COMPUTATIONAL AGE …
481. IN OTHER WORDS, THIS IS NO LONGER THE DIGITAL AGE BUT RATHER THE EARLY COMPUTATIONAL AGE
482. TELEGRAPH TELEPHONES INTERNET LONG TAIL COMMERCE (MERCHANT LAW TAKE 2) CRYPTO INFRASTRUCTURE ANALOG ERA DIGITAL ERA COMPUTATIONAL ERA INTERNET OF THINGS FIAT CURRENCY EARLY COMPUTERS GLOBALIZATION PERSONAL COMPUTERS ARTIFICAL INTELLIGENCE AUTOMOBILE CREDIT CARDS CHARGE CARDS
483. INDEED HERE IS THE KATZ, BOMMARITO + ZELNER BLOG WHICH HAS BEEN RUN SINCE 2009 (FEEL FREE TO SET THIS AS YOUR HOMEPAGE) HTTPS://COMPUTATIONALLEGALSTUDIES.COM/
485. THERE IS A THEORETICAL IDEA OF LAW AS CODE
486. EVEN MORE COMPELLING IS CODE AS LAW https://www.slideshare.net/mjbommar/university- of-houston-law-and-computation-workshop #COMPUTATIONALLAW #IMPLEMENTATION #ENGINEERING (PRIVATE LAW OR PUBLIC LAW) A 2011 Talk by Mike Bommarito
487. OR AT A MINIMUM WHAT LAW CAN LEARN FROM COMPUTER SCIENCE ? https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3943378
488. STILL EARLY DAYS BUT COMPUTATIONAL LAW IS GETTING SOME TRACTION https://www.thelawlabchannel.com/eric- wood-contracts-code-and-automation ERIC WOOD CHAPMAN AND CUTLER
489. https://law.stanford.edu/codex-the-stanford-center-for-legal-informatics/
490. https://www.globallegalpost.com/news/singapore- government-commits-11m-to-fund-legal-tech-research- programme-77990850 https://github.com/smucclaw
492. SOME OF THE INGREDIENTS OF THE COMPUTATIONAL ERA …
493. CRYPTO INFRASTRUCTURE INTERNET OF THINGS ARTIFICIAL INTELLIGENCE + + ETC. + { }
494. ANALOG DIGITAL COMPUTATIONAL
495. THESE PHASES MAP REASONABLY WELL ON TO WHAT WE HAVE SEEN (AND WILL LIKELY SOON SEE) IN THE FIELD OF LEGAL INNOVATION
496. COMPUTATIONAL Chaos + Complexity Process + Predictability Reinvention + Value Creation ANALOG DIGITAL
497. CONTRACTS / TRANSACTIONS
498. CHAOS + COMPLEXITY
499. CHAOS + COMPLEXITY PROCESS + PREDICTABILITY
500. Contract Management Dashboard Open Contracts for Review 150 11.7% compared to 170 this time last year Contracts by Type NDA’s Master Service Agreements Contracts Reviewed (YTD) 1798 9.3.% compared to 1983 this time last year Inputed Risk Mitigated $6.4M 30.0% compared to $5M this time last year Average Cycle Time (YTD) 19 days 26.7% compared to 15 days last year Total Value of All Contracts $600.2M 29.6% compared to $500M this time last year Software Licenses Sales Agreements 602 426 246 312 Global Filters from 01/01/2017 Status to 12/31/2017 Practice Matter Type 0 7 13 20 26 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Average Contract Cycle Time Agreement Name Agreement Type Days Since Receipt Division Contracts by Complexity Low Medium High 48% 37% 15% Contracts Awaiting Review NDA Software License NDA Sales Agreement MSA John Smith HR Packet MS Jane Jones HR Packet Widget Agreement Acme Services HR IT HR Sales Team IT 3 29 8 37 56
501. WHILE THIS IS A HELPFUL STEP IT IS NOT REINVENTION
502. AN EXAMPLE OF REINVENTION
503. https://medium.com/aigang-network/the-synergy- between-insurance-and-blockchain-77da2849c211
504. “WEATHER INDEXED INSURANCE IS BASED ON LOCAL WEATHER INDICES. PAYOUTS ARE TRIGGERED BY THE SPECIFIED COMPONENTS OF THE INDEX RATHER THAN CROP YIELDS” https://wrma.org/weather-risk-by-application/agriculture/
505. INSURANCE CONTRACT CONTINGENCY STORED ON BLOCKCHAIN RAW SENSOR DATA (PRIVATE OR PUBLIC) PREPROCESSED AND SERVED UP AI BOT REGULARLY CHECK FOR CONTINGENCY SATISFACTION IF CONTINGENCY IS SATISFIED INITIATE PAYMENT OR START AUDIT PROTOCOL OR PROCEED TO FINAL HUMAN APPROVAL
507. THERE IS A BROADER WAVE OF DIGITAL TRANSFORMATION COMING TO BUSINESS
508. THIS WILL IMPACT THE WORLD’S LARGEST LAW DEPARTMENTS (AND THEN EVERYONE ELSE)
509. I THINK CONTRACTS IN PARTICULAR ARE GOING TO HAVE A SPECIAL PLACE
510. BECAUSE EVEN TODAY THEY ARE ANALOG OBJECTS STORED IN A DIGITAL MEDIUM
512. CONTRACTS
513. CONTRACTS FEATURE DATA, RULES, COMPUTATIONS, OBLIGATIONS …
514. https://www.sec.gov/Archives/edgar/data/1599947/000156761917002200/s001920x1_ex10-1.htm
515. https://www.bls.gov/cpi/ The explicit rules are the computations called for in the text The implicit rules are the ones that the human reasoner used to ‘entail’ or link the passages of text (internal to document) as well as recognize that the CPI was a ‘named entity’ external to the document
516. CONTRACTS WANT TO BE COMPUTABLE …
517. CONTRACTS WANT TO BE ABLE TO PUSH AND PULL DATA …. stored legal work product
518. IF CONTRACTS WERE STRUCTURED DATA OBJECTS THEN THINGS LIKE THIS WOULD NOT BE SO DIFFICULT …
519. r-bank%Offered%Rate%is%the% st%rates%es9mated%by%each% nks%in%London%that%it%would% it%to%borrow%from%other% y%abbreviated%to%LIBOR,%or% %ICE%LIBOR%(for% Exchange%Libor).”% t%is%LIBOR?%
521. FROM POINT SOLUTIONS TO ENTERPRISE LEGAL MANAGEMENT PLATFORMS < 5 >
522. SO ALTHOUGH ‘DIGITAL TRANSFORMATION’ IS THE BUZZWORD DU JOUR IN LEGAL CONSULTING …
523. THERE IS NO DIGITAL TRANSFORMATION WITHOUT DATA …
524. THERE IS NO DIGITAL TRANSFORMATION WITHOUT A MORE HARMONIOUS I.T. ENVIRONMENT
525. IT IS NOT GOING TO BROUGHT TO LIFE WITHOUT A FOCUS ON I.T. ARCHITECTURE (I.E. MAKE SURE YOUR ‘DIGITAL TRANSFORMATION’ EXPERT HAS ACTUAL SOFTWARE ENGINEERING / I.T. ARCHITECTURE EXPERIENCE)
527. SO GLOBALLY WE HAVE HAD 2000+ POINTS SOLUTIONS BLOOM …
528. EVEN THOUGH MANY CALL THEMSELVES PRODUCTS OR PLATFORMS …
529. THE VAST MAJORITY OF THESE OFFERINGS ARE POINT SOLUTIONS DESIGNED TO SOLVE RELATIVELY NARROW PROBLEMS
530. https://www.pcmag.com/encyclopedia/term/49447/point-solution
531. AND AS NOTED … THERE IS UNDOUBTABLY GOING TO CONTINUE TO BE A ROLLUP …
532. ACQUISITIONS BANKRUPTCIES PLATFORM ECONOMICS
534. ONE BIG DRIVER TOWARD PLATFORMS …
535. INFOSEC AND ASSOCIATED PROCUREMENT ISSUES ARE A HUGE BARRIER TO THE COST OF SALE
538. APP STORE FOR LEGAL?
540. ANOTHER DRIVER TOWARD PLATFORMS
541. IS THE ABILITY TO OVERCOME SOME MAJOR I.T. HURDLES WHICH FRUSTRATE THOSE WHO WANT TO LEVERAGE LEGAL DATA
542. AS A FIELD WE DO NOT HAVE COMMON DATA MODEL OR DATA STANDARDS …
543. MAKE THE MARGINAL COST OF EACH EFFORT MUCH HIGHER THAN IT WOULD OTHERWISE NEED TO BE …
544. DATA IS LAW LIVES IN MANY INDEPENDENT AND SILOED I.T. SYSTEMS
545. SO WHEN PEOPLE WANT TO “LEVERAGE A.I.”
546. THEY BECOME FRUSTRATED WITH THE I.T. SOUP
547. NECESSARY TO ANSWER RELATIVELY STRAIGHT FORWARD QUESTIONS …
548. THREE MAJOR I.T. ISSUES INTEROPERABILITY COMMON DATA MODEL EXTENSIBILITY
549. THE CONSOLIDATION WILL CONTINUE FROM POINT SOLUTIONS TO PLATFORMS
550. HELPS SOLVE ORGS WITH THEIR DATA PROBLEM EASIER TO BUY AS BUYER THAN ONE MODULE AT A TIME
551. THIS WAS ALWAYS GOING TO END IN A PLATFORM PLAY …
553. CLOSING STATEMENT
554. SO THAT IS A JOURNEY ACROSS THE WORLD OF LEGAL INNOVATION …
555. I AM VERY BULLISH ON THE FUTURE …
556. AS WE WORK COLLECTIVELY TO SUPPORT …
557. A PRODUCTIVITY REVOLUTION IN LAW !
559. @computational professor daniel martin katz danielmartinkatz.com computationallegalstudies.com https://bit.ly/3yxhY2e illinois tech - chicago kent law P R E & P O ST COV I D T H E L E G A L I N N OVAT I O N AG E N DA