1. How The Legal Industry is Changing

2. But what is legal innovation?
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3. The Evolution of Legal Innovation

4. But why does innovation matter?
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5. Here’s a Thought!
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6. © Littler Mendelson, P.C. | 2018

7. © Littler Mendelson, P.C. | 2018

8. 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

9. Innovation has changed every other industry?

10. Is law somehow different?
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11. No. We are driven by the same forces:
Client Demand & Opportunity!
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12. 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

13. 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

14. 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”

15. 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

16. Clients are moving more work to legal technology providers

17. 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.

18. This is Why We Innovate!

19. This is Why We Innovate!

20. Officeless Law Firms Are Expanding Their Markets
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21. 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

22. 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

23. 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

24. 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

25. 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.

26. 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,

27. 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