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Dave Block's avatar

What methodology do users of legal AI use to catch hallucinations before they wreak havoc?

Harshith Viswanath's avatar

Hi Damien! I hope you're doing well. I think you're opinion on AI-Native Law Firms is spot-on. This is something that I've been tracking as well. There is no definition of an AI-Native Law Firm. AI being embedded as part of core workflows is vague since you don't know what constitutes "core". Furthermore, there's an entire unresolved debated on the billable vs fixed-price model. The definition is something that we'll find out with time. BigLaw will be able to out compete AI-Native Law Firms because clients chose BigLaw because of reputation, brand image and trust with over years of track records closing transactions.

One of the areas in India where I see AI-Native Law Firms capturing value could be MSMEs because BigLaw has ignored businesses like export businesses, textiles, fisheries etc. These businesses have been traditionally underrepresented. However, with AI tools more value can be captured as these businesses do not have intensive legal work. Firms can make recurring revenue as these businesses tend to be stickier to law firms (loyalty) as they grow. AI-Native Law Firms could extend legal services to a set of the population that did not have access to legal services. Would love to get your thoughts on this! (It has the potential to do so)

I write a blog in substack titled "The LegalTech Thesis" where I analyze all things LegalTech. One of my posts analyzes how AI-driven due diligence tools are transforming M&A workflows. Would love to get your thoughts on this as well!

https://harshithviswanath.substack.com/p/ai-driven-legal-due-diligence-the

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