Lawyer Monthly Magazine - July 2019 Edition

Despite these developments, client expectations for law firms to achieve better and more cost-effective results through artificial intelligence, machine learning, and new applications are often too high. Regardless of the hype and the enthusiastic press coverage of Legal Tech start-ups, there are only a few AI applications within the law profession currently available that actually deliver results. Most of the so-called “digital solutions” are still simple algorithms that have nothing to do with machine learning; they just lead to greater efficiencies and manage repetitive work. Effective AI solutions must be developed on the basis of large and reliable pools of data, something which is difficult to gather in a fragmented market. English-speaking jurisdictions have a great advantage in this regard, as well as common law jurisdictions, with their tradition of thorough legal databases, compared to civil law jurisdictions. In the US, where litigation is more common than in Europe, software analyzing the history of previous cases to predict legal outcomes of litigation can be more easily developed for the benefit of clients. Independently of jurisdictions, AI technology is increasingly being used for document review, including summarising and analysing documents, such as in large M&A transactions. This technology allows for efficiency and productivity gains: gains which free up lawyers to invest the time in thinking about the right questions to ask and the right approach to take. Further, this technology can prove far more accurate than a human lawyer could ever be. However, as the first analysis of the Boeing 737 MAX catastrophe seems to underline, one cannot risk leaving the human out of the equation. An unparalleled gentler reminder of that is the Sorcerer’s Apprentice in Walt Disney’s 1940 movie “Fantasia”. The current Legal Tech hype is beginning to stir client expectations despite a significant lack of successful examples of AI implementation. Undoubtedly, it will take time to develop effective and reliable tools, contrary to some of the press coverage of the scene. Nevertheless, the start- up activities are great news for a slightly faster evolving legal ABOUT GEORG C. UMBRICHT Georg C. Umbricht advises international companies and individuals with com- plex financial circumstanc- es in Corporate, Banking and Tax Law matters. In addition, he is regularly en- gaged as Counsel and Ar- bitrator in International Ar- bitration Proceedings (ICC, Swiss Rules, ad hoc) and as Commercial Mediator. FIRM PROFILE Globalaw aims to provide an effective platform to seamlessly address and meet global client needs thanks to a personal and collaborative relationship among selected and high quality firms throughout the world. market, and especially for an otherwise sometimes sluggish European economy. It is inherent in the term ‘start-up’ that only a small fraction of them will succeed over time. However, as law firms are looking to adopt the offerings of successful start- ups, the changes are welcome and the awareness of their potential has never been higher. Ultimately, clients and law firms are set to will profit from these technological advances. LM “Historically law firms have never been known as being early adopters of new technologies. However, client demand is the best driver for adoption.” 33 Globalaw JUL 2019 www. lawyer-monthly .com