When you’ve been taking note of authorized tech bulletins currently, you’ve in all probability observed a sample: the authorized tech business is experiencing an unprecedented wave of consolidation. LexisNexis and Harvey lately announced a strategic alliance that may let Harvey and LexisNexis customers have the advantages of each platforms. The follow administration behemoth Clio final month announced the acquisition of the authorized analysis platform vLex. After which simply final week, the premier doc administration system supplier NetDocuments announced partnerships with Harvey and Legora. NetDocuments additionally introduced a better integration with Microsoft.
Buyer Needs and Expectations
Why all these mixtures now? I believe they’re all pushed by AI. Certainly, if you take a look at what these distributors are doing and saying, it’s all about increasing AI capabilities for purchasers.
So why all this exercise? Fairly merely, it’s as a result of prospects need this expanded functionality. Folks expertise the convenience and time financial savings of AI one place and wish it each place.
However right here’s the opposite factor prospects need: simplicity. The less instruments and platforms they’ve to make use of to get issues achieved, the higher. They need their AI instruments to work seamlessly as in the event that they have been all from the identical supplier. And at last, significantly within the authorized setting, they want assurance that their work might be achieved securely.
However Why Mix?
However that doesn’t essentially clarify what we’re seeing within the latest mixtures and acquisitions. These occasions are pushed by two causes. Authorized tech distributors have to mix: they will’t do it alone and solely different authorized tech distributors can supply the requisite safety.
Construct v. Purchase?
First, offering AI all over the place on a regular basis ain’t simple. It’s significantly troublesome if what you are promoting mannequin relies on supplying good however restricted merchandise which nearly each tech product maker does. NetDocuments is kind of restricted to offering a superb doc administration system. vLex is restricted to authorized analysis. Even Clio, giant as it’s, is primarily a follow administration system supplier.
So it’s a traditional construct versus purchase determination. It could be powerful for a doc administration system supplier like NetDocuments to turn out to be an AI-based authorized analysis supplier. Or for Clio to develop an AI system just like what vLex has. Harvey began as a authorized drafting device. Whereas it has expanded its set of instruments, it could be powerful for it to develop its personal authorized analysis device to compete with LexisNexis. Or a doc administration system to compete with NetDocuments. vLex is a superb authorized analysis device however for it to develop a follow administration system to compete with Clio could be well-nigh unattainable.
And even when these firms might develop their very own techniques, by the point they acquired there, their rivals could be manner forward.
However the different choice to satisfy AI demand is to amass or mix with those that can present what you may’t or can’t present very nicely. Therefore, we see these mixtures: Harvey’s strategic alliance with LexisNexis to combine the LexisNexis authorized analysis and writing capabilities. Clio’s acquisition of vLex which provides each platforms one thing the opposite one lacks. And now the NetDocuments alliance to carry Harvey’s drafting capabilities and instruments to NetDocuments prospects. It’s all about expanded AI capabilities for purchasers.
What About Safety?
The second purpose for the latest exercise is the necessity to higher guarantee legal professionals and authorized professionals that their work will likely be safe in order to satisfy moral necessities. By necessity, authorized tech firms have to mix with different authorized tech firms who perceive the necessity for this type of safety and might present it. An integration with a publicly dealing with firm like ChatGPT would possibly present a device that might theoretically do what prospects need nevertheless it couldn’t meet the safety necessities.
As Dan Hauck, Chief Product Officer of NetDocuments places it about ndConnect, the product that may combine with Harvey and Legora, “ndConnect extends our distinctive doc and AI capabilities to 3rd occasion AI vendor, whereas preserving the total safety, findability, and productiveness of their basis platform.”
The NetDocuments press launch reiterates this concept, “ndConnect is NetDocuments new interoperability program designed to securely and seamlessly combine third occasion AI options into their NetDocuments setting”.
By the best way, notice the idea implicit in what NetDocuments is saying. It’s not simply speaking about partnerships with Harvey and Legora – NetDocuments is speaking about mixtures with different third occasion distributors. In different phrases, we’ll possible see extra of this in future.
What Does the Future Maintain?
Definitely, economies of scale could also be a part of these strikes. However AI works most satisfactorily when it may be used all over the place for the whole lot. And used securely. That’s what’s essentially driving this wave of mixtures and why we’ll see extra sooner or later.
Regulation companies ought to concentrate on these mixtures and scrutinize the integrations that AI suppliers supply to ensure they work merely and securely.
Stephen Embry is a lawyer, speaker, blogger, and author. He publishes TechLaw Crossroads, a weblog dedicated to the examination of the strain between expertise, the legislation, and the follow of legislation.
