How The Legal Industry is Changing

But what is legal innovation? © Littler Mendelson, P.C. | 2018

The Evolution of Legal Innovation

But why does innovation matter? © Littler Mendelson, P.C. | 2018

Here’s a Thought! © Littler Mendelson, P.C. | 2018

© Littler Mendelson, P.C. | 2018

© Littler Mendelson, P.C. | 2018

Innovation has changed every other industry? Accounting, Journalism, Finance, Medicine, Insurance Every other knowledge-based profession has been transformed by the digital revolution Travel, Banking, Real Estate, Retail, Hospitality Every service industry has been impacted

Innovation has changed every other industry?

Is law somehow different? © Littler Mendelson, P.C. | 2018

No. We are driven by the same forces: Client Demand & Opportunity! © Littler Mendelson, P.C. | 2018

Clients Have Options Now Clients are moving more work to legal process outsourcers software products software & services providers consulting companies LPO / managed services providers captive LPOs insourcing companies low-end legal staffing companies key players Thomson Reuters, 2016

Clients Are Bringing More Work In-house GCs have moved $4B in legal spend in-house in past year BTI Litigation Outlook 2017, BTI Consulting Group 68% of law firms report losing business to corporate legal departments 2016 Law Firms in Transition, Altman Weil

Clients are Building In-House Legal Operations Teams Vendor Management:  Create a vendor management program to insure quality outside counsel support at the right rates and under optimal fee arrangements. Hold regular business reviews.  Negotiate fee agreements.  Drive governance of billing guidelines. In CLOC’s view, we are now just “vendors”

The “Big 4” are Entering the Legal Market “Big League” Accounting/Consulting firms have moved beyond tax, targeting transaction work including employment, benefits and immigration “Lawyers often say that accountants will never compete for ‘bet the company’ work. Accounting firms don’t want ‘bet the company work. They want ‘run the company work.’ ” Lawyers: Accountants are Eating your Lunch Jordan Furlong, Law21

Clients are moving more work to legal technology providers

Clients Are “Doing Less Law” “There are no legal problems; there are only business problems.” Mark Chandler, GC, Cisco Systems Law firms regard legal problems as part of their inventory, providing solutions on an hourly basis. Corporations view legal problems as an obstacle to business continuity and corporate profit – i.e., something to be minimized and eliminated.

This is Why We Innovate!

This is Why We Innovate!

Officeless Law Firms Are Expanding Their Markets © Littler Mendelson, P.C. | 2018

Also Artificial Intelligence Will Dramatically Impact Many of the Tasks Currently Performed By Attorneys Legal Research Verifying litigation strategy using data analytics Drafting basic pleadings, discovery requests and responses Reviewing court filings for accuracy, persuasiveness of arguments, likelihood of prevailing before a specific judge Answering basic questions Drafting transactional documents (employment agreements, offer letters, HR policies) Delivering our SME expertise in new ways

But Artificial Intelligence Will Dramatically Impact Many of the Tasks Currently Performed By Attorneys AI-based legal research tools will enable us to: Perform legal research more effectively Using advanced algorithms to identify relevant case law Rapidly review filings and briefs to assess: Accuracy of case citations Omitted case citations that could bolster legal arguments Best winning arguments before specific judges

But Artificial Intelligence Will Dramatically Impact Many of the Tasks Currently Performed By Attorneys Answering litigation strategy questions using data analytics: How courts or judges have: Ruled on specific motions Awarded damages Ruled for/against opposing counsel

But Artificial Intelligence Will Dramatically Impact Many of the Tasks Currently Performed By Attorneys Drafting basic pleadings, discovery requests, responses AI can analyze complaints to provide the first drafts of: Answers including applicable affirmative defenses Requests for production Standard interrogatories

But Artificial Intelligence Will Dramatically Impact Many of the Tasks Currently Performed By Attorneys Drafting Transactional Documents AI can enable customizable templates that allow clients to generate agreements, forms, and policies that meet their specific needs.

But Artificial Intelligence Will Dramatically Impact Many of the Tasks Currently Performed By Attorneys Answering basic legal questions AI chatbots and robotic software can search the Internet, accessible databases and other systems to respond to common inquiries Think Siri, Alexa,

But Artificial Intelligence Will Dramatically Impact Many of the Tasks Currently Performed By Attorneys Delivering our SME expertise in new ways Expert Advisor Systems Embed the knowledge and experience of our SMEs into client-facing software “Sticky” Web Portals