06 JUN 2014

Interview: What’s happening at Intapp?

CRM: Outsource your data capture

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2 | LEGAL IT TODAY CONTENTS

From the editor 5

Process mapping through Glass 26 6 12

What’s happening at Intapp? CRM: Outsource your data capture – to your contacts

18 22 28

Judgment Day? Can AI take over the legal State of the art: Legal technology Internet of Things: it’s not science fiction world? education

Sam Mardon is a London-based photographer and film maker. This photograph was taken in London’s Canary Wharf.

32

Big data and legal: from first date to newlyweds!

LEGAL IT TODAY

Legal IT Today is published by: Contributors: Asfour in cooperation with Legal IT Professionals Neil Cameron, David Halliwell, Ted Theodoropoulos, Anthony Waller, Jobst Elster Editor: Joanna Goodman - [email protected] Design: De Reclamestudio & TotaMedia ISSN: 2214-2355 Advertising information: Rob Ameerun - [email protected]

LEGAL IT TODAY | 3 4 | LEGAL IT TODAY From the editor

Welcome to issue 6 of Legal IT Today! This issue looks at the evolution of the legal sector, which is at least partially technology driven.

Whereas 2013 seemed to be the year of the futurist, 2014 And after all, we already have the Internet of Things (IoT). I seems to be the year where some predictions become reality. met Olswang partner and technology co-head Tony Waller on There is less talk of game changing disruptive technology as twitter when I was looking for insights for a presentation. Tony the industry recognises that it has already been disrupted and advises on the legal aspects of developing new, cutting edge the game is rapidly changing. This is borne out by the fact that technology, and how machines communicate with each other in a recovering global economy, the legal sector continues to to make our lives easier. consolidate and as well as ongoing M&A activity among law firms, vendors and legal publishers (notably the recent sale of Wearable tech is 2014’s hot topic and I thought to follow up ALM Media) we are seeing casualties as well as success stories my Google Glass interview at the South West Legal IT Forum. among the market disrupters: for example, in the UK, the Ted Theodoropoulos of Acrowire in the US has purchased Stobart Group is no longer providing legal advice to the public, Glass and has written a practical opinion piece on where it and in the US Clearspire closed its virtual law firm operations. fits into the legal sector, with a particular focus (sorry) on process management. Our vendor profile is John Hall, CEO of Intapp which hit the legal IT news with its recent purchase of The Frayman Group. Legal IT education has only recently hit the mainstream, Intapp has developed several of the industry’s most popular with 13 US law schools offering legal technology courses. products and is worth watching as it always seems on trend. I interviewed Professor Andrew Perlman who heads up the It was great to get John’s insights on applying Silicon Valley Legal Technology and Innovation department at Suffolk Law principles to the global marketplace. It was a telephone School in Boston and who is working with Casey Flaherty of interview and for the first time in my career my interviewee Kia Motors on automating his legal technology audit for use declined to provide a photograph. But we do have Blake by general counsel and by law firms. Professor Perlman is Tucker’s arty photograph of Intapp’s wine bottle display at also a Glass Explorer, so he is literally looking at new ways of ILTA last year. delivering legal services – and legal education.

The combination of a rising economy and intense competition Finally, ABA Big Data committee member Jobst Elster of has put CRM firmly back on the legal IT agenda. Top UK InsideLegal tracks the legal sector’s deepening relationship consultant Neil Cameron suggests that firms should engage with big data and highlights the start of an era of data-driven their contacts in updating their own data thereby ensuring innovation in legal. sufficient accuracy and granularity to facilitate engaging, personalised client communication. Ironically, as I was Our cover image by London-based photographer and film subbing this article, I received a golfing invitation, which maker Sam Mardon depicts Canary Wharf in London where perfectly illustrated Neil’s point about the value of finding out I recently attended Ark Group’s KM Legal conference and more about your contacts so that you send them relevant enjoyed excellent presentations by LITT contributors to previous information and invite them to the right events as although issues and, hopefully, future issues too. this was clearly a generous thought, it was not for me. However, a random invitation sometimes hits the spot – the I hope you enjoy Legal IT Today. As ever, we aim to share Nimble Storage for the X-Men: Days of Future Past screening ideas and opinions across the global legal IT community and was great fun! stimulate discussion. Please don’t hesitate to get in touch with feedback and suggestions for topics, features, and images. It is Just a couple of weeks ago we saw an artificial intelligence always good to hear from you. milestone when a computer became first to pass the Turing Test which requires that computers are indistinguishable from humans – Eugene Goostman managed to dupe 30% of human Joanna Goodman MBA interrogators in five-minute text conversations. David Halliwell, Editor Director of Knowledge, Risk and Legal Services at Pinsent [email protected] Masons wonders why AI has been slow to take off in the legal http://uk.linkedin.com/in/joannagoodman sector. Certain sophisticated eDiscovery predictive engines @JoannaMG22 suggest that this may not be too far away.

LEGAL IT TODAY | 5 What’s happening at Intapp?

BY JOANNA GOODMAN

Intapp is one of the most popular software suppliers to law firms on both sides of the Atlantic. And it is expanding, with the recent acquisition of The Frayman Group. Legal IT Today editor Joanna Goodman interviews Intapp’s CEO John Hall who explains how the company is successfully applying Silicon Valley principles to legal IT. In May 2014 Intapp moved to new offices in the City of London.

How did Intapp get into the some 500 large law firms use Intapp firms have to compete for business. The legal sector? platforms, including 87% of US AmLaw soul of the law firm is consistent – a Intapp is a Silicon Valley technology 500 and three magic circle firms. group of highly educated professionals company. The original founders were selling knowledge and expertise – but doing technology consulting and they Law firms are giant storehouses of their its service offering is changing from developed their own data integration clients’ most sensitive information. The the billable hour concept to a more software to help large companies discipline of data management, quality, complex set of agreements around the integrate their financial systems with governance and security is central to style of engagement that corporate their e-commerce systems. They went their operations. clients expect from the firm that wins to get a patent on this new product and their business. The resulting price when the patent lawyer had filled in What current challenges are you competition puts pressure on firms’ the requisite forms, he asked to buy the looking at in legal? revenue and profitability. product for his law firm. So the patent The legal sector is entering a new era lawyer became their first customer in and firms will have to change in order Market consolidation is continuing. legal! He found the product so useful to survive. The sector’s transformation The payoff for large international that he recommended it to other is underpinned by the evolving mergers is that merged firms have to law firms. We have always based our relationship between law firms and get lawyers productive and cross-selling product development strategy on finding their clients away from a sellers’ market to their expanded client base as quickly ways to help our customers. Now, to an aggressive buyers’ market where as possible.

6 | LEGAL IT TODAY Photography by Blake Tucker

Intapp’s data integration offering ‘The soul of the law firm is consistent – helps law firms design a true global information model that brings together a group of highly educated professionals the various systems in a way that can increase productivity quickly. For some selling knowledge and expertise, but its very large firms we have built a global service offering is changing from the billable conflicts database that lets partners ensure they are taking on business hour concept to a more complex set of correctly. We have done master data management projects. We have agreements around the style of engagement experts in the company that come from the big data, data analytics and that corporate clients expect from the firm master data management world – that wins their business.’ – John Hall from companies like Oracle – who are working with IT departments and data architects to design next-generation confidentiality is a growing issue for In the case of data integration and information management platforms large global firms, driven by international ethical walls software, do you think for these large merged firms. regulation around data privacy and the it was fortuitous or strategic that changing conflicts regimes, particularly your clients were early to encounter Was Intapp a first mover in legal in the UK with the new SRA rules. This issues that soon became common to risk management and ethical walls confluence of factors created a surge in most law firms? software? How did that come about? demand from law firms seeking better It was both. We continue the Silicon We were first to market with our ability to document the commitments Valley approach by looking to innovate confidentiality and ethical walls they were making to their clients and in areas where law firms do not have solution. We initially built our client regulators about how they were going great technology, but experience real acceptance system to help a large firm to manage sensitive client information. pain points. We have established good that was going through an international We created an original innovative relationships with our clients where merger. It turned out to be fortuitous system that changed the way firms they feel they are talking to people because client information security and managed confidentiality. who can address some of the complex

LEGAL IT TODAY | 7 technology issues they are facing. Do you plan to integrate The or a month. Our system means they Our reputation has been built on our Frayman Group and Intapp products? don’t have to remember everything. position of a Silicon Valley innovative We are calling it TFG and managing it Now, however, as firms shift away technology supplier. as a subsidiary. We are bringing over from the billable hour, you might think some of the capabilities of The Frayman that lawyers don’t need to record time What was the rationale behind The Group technology to make Intapp Open anymore. But even though they may Frayman Group acquisition? and Wall Builder the best offering in the not be billing by the hour, the law firm That acquisition puts us in the position marketplace. management need to know how long of being the largest risk management people are spending on each matter systems supplier for large law firms. You say firms are moving away from because they need to figure out how Our position around new business the billable hour. But time capture to operate more efficiently. This gets intake and conflict gives firms more and billing products are based on back to the growing importance of visibility into the kind of business they the billable hour – or at least on management information. Increasingly are running. It’s important for these measuring by time. Where do they firms don’t record time for billing processes to include as much high- fit into the Intapp equation? purposes, but they need to know how quality information as you can and to Intapp’s time management platform long it takes lawyers to get various be as efficient as possible because you includes various different capabilities. matter types done for different clients want to help lawyers get through that Automated time capture software keeps and measure the value of their IT decision-making process, take on the track of lawyers’ activities on multiple investments. For example, if a firm right matters and get to work quickly. devices and brings them into the time invests in a workflow product or Law firms are selling matters rather than entry system. In the traditional billable practice automation system, are matters hours, nowadays, and the critical step hour model, lawyers have to keep track now being completed more efficiently? in law firm transformation is for them of every six-minute interval during the to get a closer handle on what matters day. If they were really busy and forgot Some CIOs have said that partners they are taking on and the promises to write it down, they would have to sit are reluctant to invest in expensive they are making their clients and there at the end of the day and try to technology that eats into their profit managing those as a business rather reconstruct their day. It would be really margins. What is your approach to than focusing on the billable hour. tough to do that at the end of a week selling into the partnership model?

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8 | LEGAL IT TODAY ‘Silicon Valley has shaped our structure and our teams. The idea is not to push a product that may or may not have relevance. We start out with people who understand the issues, the politics and the business and technology problems inside the firms, and that drives our product development CIOs have an opportunity to help acquisition. This makes us one of the firm’s partners understand how the largest suppliers to the legal and investment technology can improve efficiency in sector and we are entering into more strategy. It all starts a meaningful way, but they have to strategic agreements with firms to translate this into how does that help help them look at the big picture of with the people.’ – win business. Technologists need to their IT operation. Our Silicon Valley build up the language to translate entrepreneurial culture has enabled us John Hall the excitement, the potential and the to develop products to address firms’ vision of new technology to how it most pressing issues. can help grow the business, or make Silicon Valley has shaped our structure it more profitable. David Maister We have a unique company strategy. and our teams. We recruit our categorises IT as an overhead expense We work in practice groups that serve technologists and marketers from like rent or copier costs, rather than different buyers and departments Silicon Valley companies and our a strategic investment for law firms. inside law firms. Our risk management customer facing team includes people Law firm CIOs have done a great job practice group focuses on business from software companies such as to help firms become operationally intake, conflicts and general counsel. Thomson Reuters Elite, Aderant and successful, but they also need to Our time practice group focuses on Opentext who use their experience develop an IT strategy that is aligned time keeping and time recording for with law firm software to create great with the firm’s competitive strategy. finance and also for practice group models and people from global intake If you look at other industries the leaders and lawyers themselves. Our and conflicts departments in big law percentage of revenue spent on IT data integration group works with the IT firms. We also have lawyers working increases in a competitive marketplace. department. We try to bring in the best with us on our product strategy. The real challenge for CIOs is having and the brightest in each of those areas What sets us apart is our cutting a potentially difficult conversation to give us a better understanding of the edge technology and entrepreneurial with senior management saying that business issues that each department culture but this has derived from a although it may not be obvious to the is facing, to understand the trends in big investment in expertise and our partners, IT can improve efficiency and the marketplace and to incorporate practice group structure. The idea is help the firm become more competitive our customers’ needs into our product not to push a product that may or by enabling it to offer the same service roadmaps and product design. So may not have relevance. We start at lower prices and you will win more there’s a more holistic approach rather out with people who understand the business as a result. This is often than just a product approach. Our issues, the politics and the business challenging in the legal community. practice groups include consulting and technology problems inside the capability to help our customers get the firms, and that drives our product What are your plans going forward? most value out of the software that they development and investment strategy. Our big news is The Frayman Group buy from us. It all starts with the people

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10 | LEGAL IT TODAY LEGAL IT TODAY | 11 CRM: Outsource your data capture – to your contacts

BY NEIL CAMERON

The combination of a highly competitive business environment and the latest practice management systems have brought the focus of legal IT back to client relationship management (CRM). One of the main challenges is keeping client data up to date and relevant. Here leading consultant Neil Cameron suggests a different approach where the contacts themselves ensure the accuracy and granularity of their data, facilitating personalised and engaging client communication.

Which professional service organisation’s with organisations and individuals. some extent; they keep their ears to data-set is most key to the firm’s Your mistakes are obvious, and when the ground and often notice changing business, fastest changing, most you get it wrong your contacts find contact details – especially if clients embarrassing to get wrong and the it mildly annoying, infuriating or inform their lawyers that they are most expensive to keep up to date? downright offensive. moving offices, for example.

For me, it is CRM data – the key It is the most expensive to keep up to Except that – unless your processes information relating to clients, contacts date because commercially available and procedures have been well defined and other important entities. information will take you only so far; and implemented, what can happen in to keep getting it right you need such situations, is that the next person It is key because it is an invaluable constant attention to obtaining and who sees the new information says to mechanism in building strong client updating the data. themselves, “I know that client, that relationships and winning new clients. address isn’t right”, and changes it back Theoretically, firms keep the basic to what it used to be. It is fast changing as a large group contact information about clients and of people change their jobs, roles, other contacts current because lawyers CRM data: business relationships employers, interests and market needs pass on any changes as they hear What information are we actually at an astonishing rate. about them. But even as I write this, talking about? Well, following the it seems unrealistic to rely on lawyers fundamental relational database It is embarrassing to get CRM data to do anything that’s not lawyering. principle means that we will seek to wrong as you rely on it to communicate Secretaries can bridge the gap to distinguish between individual entities

12 | LEGAL IT TODAY (or people as we used to call them) Corporate and individual employed by one (or more) and have and organisations. information non-exec roles at several others. Even What information do we want to the job title needs analysis: the role We want to be able to create data maintain about these entities? Well, of description ‘Finance Director’ at one for both types of entity, and relate to course for the organisation we want organisation could be ‘Head of Finance’, them in a variety of ways. The obvious their basic contact details; main address, ‘CFO’ or ‘Head of Admin & Finance’ relationship is that of employer and billing address, phone numbers, web at others. So you also need a primary employee – but there are many other site, D&B number, company registration job function described in a standard potential relationships. Here are just number, stock symbol etc – but we also classification so you can search, find, a few: want information to enable us to meet list and further manipulate all finance their legal needs more effectively, and directors whatever they are called. You Organisation to organisation – to be frank – sell them more services. may also need multiple job functions • law firm to This kind of data includes: –a ‘Director of Finance & IT’ should be • banker to • industry codes recorded both as finance director and as • investment adviser to • other professional advisers IT director in your taxonomy. • subsidiary of • legal services utilised • potential other services Even something as simple as the name Individual to organisation has potential complexities. What • employee It would also be useful to know roughly is their title? If it is ‘Professor’ you • ex-employee their annual spend on legal services, in also need to note their gender. You • alumni which areas, and what proportion of may need different forms of address • client of that spend comes to our firm. When depending where within the firm each • banker of it comes to undertaking basic research communication originates. One partner before a client service review, or a may address a contact as ‘Dear Mr Individual to individual pitch for further work we also want Jones’, another who know knows him • knows a detailed analysis of the work we better may address him ‘Dear Gerry’, • likes have undertaken for them and current while another – who went to school • partner of information so we can demonstrate with him – calls him ‘Dear Squiffy’. • does not get on with that we care about, and understand • ex-wife of their business. Such background would Then it starts – potentially – to get really include recent news stories about the complicated. The last two are real instances that a company and share price movements. client of mine had to deal with after a Accuracy and granularity disastrous marketing event when they I know of one recent encounter with a Apart from how to communicate managed to invite two particular clients, potential new client for a panel of law with people, you really want to store one of whom was married to the other’s firms in the US, where the first question information about why you should be ex-wife. It didn’t go well. My client from the client was “What is our share communicating with them – and for wanted a mechanism to make sure that price this morning?” Other factors what purpose. these people were never again invited must, of course, have come into play to the same event. – but is so happened that the firm that This means maintaining information won the work was the only one that about their professional and personal knew the answer to that question. interests – with a sufficient degree of granularity and accuracy so that when ‘It is embarrassing Get personal – and relevant you communicate with them you do This is all well and good, but you can’t not end up annoying them. Following to get CRM data invite a corporation to a golf day – that a client interviews on behalf of a law wrong... Your kind of marketing activity requires firm, I asked my usual final question on information about actual people and whether they was anything that wanted mistakes are obvious, whether they like golf. to add. The client’s expression turned down as he reached into his waste and when you get it The basic contact information is – of basket and fished out a fancy glossy course –name, address, telephone, brochure that the law firm had sent him. wrong your contacts email – with a link to their employing organisation and their job title. Each of “I deal with patent issues, as the firm find it mildly these has elements of complexity. They well knows, yet they send me this may be both a personal and corporate general brochure on IP, most of which annoying, infuriating client, and need addresses for both, is copyright law that has no bearing on or downright with further exceptions – like where to what I do. I have asked them repeatedly post the draft divorce petition. not to send me this expensive, generic offensive.’ brochure most of which is irrelevant to They may have relations with more than me,” he said. – Neil Cameron one corporate entity; they could be

LEGAL IT TODAY | 13 14 | LEGAL IT TODAY I gulped. He paused, and then reached ‘People realise that the more accurate the down into the waste basket again, adding, “And, each time they send me information you hold on them, the more you two of them.” will let them know about stuff that they are The firm had been to a lot of trouble interested in, and invite them to events that and expense to prepare this brochure and identify who to send it to, and the they want to join. It is in their over-riding only effect it had on this client was to interest to make sure that your information annoy the hell out of him. about them is accurate, and granular.’ So accuracy and granularity are absolutely key. Perhaps something – Neil Cameron combining this client’s practice area (patent) and industry (pharmaceutical) easily have a saved query that regularly when they would really love to go to would have been better. The more sends a unique combination of all the the opera instead. Why not maintain a specific you can be, the more of their relevant information (and only the reference to their drink preferences? Do attention you will grab, and the more relevant information) to each of your they prefer wine to G&T, white to red, grateful they will be. contacts – in electronic format. Burgundy to Beaujolais?

Classified data and electronic Then there are business marketing You might want to know even more communication functions – seminars and executive personal and changeable information The key is a series of taxonomies (area briefings; and social marketing functions about individual clients, such as their of law, transaction type, geography, – golf days, rugby, Henley, Wimbledon, current marital status, how many industry etc) that matches your work the opera, and so on. children they have and their ages etc. types, your markets, your department structure and your knowledge. A few Accurate invitations to business Why not make a virtue out of a clicks on each of these in combination, functions flow from the taxonomies necessity? If you hold this kind of and you have your granularity – you already mentioned. When it comes information, you have a lot of DPA just have to make sure it accurately to social functions you have to know compliance to consider – as well as reflects their interests – that is the main what people are really interested in. communication preferences and so on. thesis of this article, and we will come How to gather that? It is not easy: back to that later. invite them to a variety of events until Let your contacts maintain their data they say yes, record that you met So – why not outsource your client/ And why send paper? If you make sure them at the rugby match, ask the firm contact data maintenance – to your that your public relations, knowledge contacts – it’s a bit hit and miss. Again, clients and contacts. You have a perfect nuggets, blogs and market updates are I have known key clients bemoan that excuse to email them once or twice a all accurately classified, then you can they are always invited to the golf day, year to tell them that you hold personal

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16 | LEGAL IT TODAY information about them on your Such a client/contact initiative as I am relevant meetings, as well as current system, and to ask them to confirm suggesting will go some way towards work, recent billings, unpaid bills and permission to hold such data, and dealing with the initial objection, profitability, client chare price, latest their communication preferences. This especially in tandem with the other news stories etc. presents them with a secure link to an steps I propose to deal with the extranet from which you invite them to other objections. The other obstacles to adoption can review and edit a key subset of all the be dealt with by change management, information you hold on them. training and easy to use software. ‘Lawyers are like Change management, by the way, is Let them tell you that their job title or not a fancy term for executive training. phone number has changed, but also intelligent less-cuddly It has nothing to do with how to let them uncheck ‘Golf’, and instead white laboratory rats: use CRM technology; it is all about click on ‘Opera’. Let them tell you what getting across the potential benefits particular legal issues interest them, explain to them why to the firm in adopting better business and uncheck the ones that do not; let it will benefit them, development and client relationship them tell you which other services you practices and so on. offer they might want to hear about, train them well, and which they would not. Let them Lawyers are like intelligent less-cuddly tell you their drink preferences. institute KPIs that white laboratory rats: explain to them measure compliance why it will benefit them, train them With the right interface, it can be easy well, institute KPIs that measure and quick. and their hearts compliance and their hearts and minds will eventually follow. In proposing this to law firms I get the and minds will same regular objections: eventually follow.’ Neil Cameron is a leading law firm • the contacts do not want to do this technology consultant. Originally a • they cannot be bothered to do it – Neil Cameron barrister he worked for LexisNexis and • they will refuse to answer detailed Allen & Overy before joining KPMG queries and just tick ‘None’ Implementing bi-directional integration Management Consulting in 1986. In • they will not give accurate between all contact information that 1994 he set up his own independent information you hold and Outlook contacts so consultancy which now has a team of that subsets can be populated on four legal IT professionals. Neil and his In practice, although there will be smartphones means that people will team advise law firms about technology exceptions, these objections generally live with the data and thus derive projects including IT strategies and fall down in execution. benefits from it and have an interest reviews, and systems procurement in its accuracy. Such integration will and implementation. He writes regular People are getting used to such data also mean that – if people use Outlook articles and blogs on his website requests; they realise that the more calendar invitations properly – you www.nccg.it and for legal journals; accurate the information you hold on will have an auditable and searchable and for over 25 years has been a them, the more you will let them know record of all meetings between your frequent speaker at conferences and about stuff that they are interested lawyers and contacts. This means that seminars. He can be contacted in, and invite them to events that your attorney ‘Taxi Report’ can list all at [email protected] they want to join. It is in their over- riding interest to make sure that your information about them is accurate, and granular. And then when they arrive at the evening seminar, there will be a glass of white Burgundy waiting for them…

Getting lawyers to use CRM technology A key issue with the adoption of CRM technology, within the law firm, is that of getting the lawyers and staff to use it. The reasons they do not include: • the information is inaccurate/is out of date • it does not integrate with Outlook or my smartphone • it is too difficult

LEGAL IT TODAY | 17 Judgment Day? Can AI take over the legal world?

BY DAVID HALLIWELL

The law is about applying a set of rules to particular circumstances – and so is computing. It is only a matter of time – and inclination – before artificial intelligence (AI) takes over the legal world, says David Halliwell, Director of Knowledge, Risk and Legal Services at Pinsent Masons. But who will lead the way?

I always had a soft spot for Ronald How far away are we from a virtual, • learning from experience is where Dworkin when I was studying artificially intelligent Hercules? That it gets really interesting, so that the jurisprudence, the theory of law. His depends on your definition of artificial system itself can change its model, imaginary judge, Hercules, left his mark intelligence (AI), so let’s start with depending on the reaction to its on me. His model was of a judge who some concepts: previous predictions. knew all the law there was to know, and who decided cases by matching • artificial intelligence is a general Now, look back at how I described the facts of a case before him with term covering the ability of machines what Hercules did: ‘matching’, ‘facts’, those features relevant for particular or software to function with human- ‘patterns’ – it’s just the space AI could legal outcomes. He differed from real like intelligence; be operating in. judges in that he really did know it • a key element of a functioning AI all, and that he was able to discern system is the ability to perceive the AI is all around us, every day. From patterns in the law as it had developed, environment, and to react accordingly; SwiftKey, which learns how and what allowing him to seamlessly and • recognising patterns has long you type on your Android phone, consistently extend the law to been a core concept of all computing through the online dispute resolution cover any novel factual situation – intuitively extending the pattern to process that eBay uses, to the Google presented to him. apply to a novel set of circumstances is cars that have been on the streets of the where AI comes in; USA for the last few years, machines are

18 | LEGAL IT TODAY The other area Watson has been set to pitched against a panel of experts. The work on is finance. Investment decisions statistical model only operated on six – and in particular the precise timing variables, based on observed behaviour of them – have been made by machine in prior cases. The expert panel applied for a while. Some may welcome the relevant law and their understanding supposed cool rationalism of computers of the preferences of judges. The running finance, but can you replicate model got it right 75% of the time; the the innate moral code that prevents ‘experts’ less than 60%. And that was the majority of financiers from being based on only six variables. governed by a raw desire simply to maximise profit? A now famous study of parole board decisions in Israel by the US National The human factor Academy of Sciences found that That human, moral element is the other applicants were far more likely to have reason why I don’t think AI and law their parole request granted if their case are making a lot of progress together. was heard by a judge sitting soon after There is an intuitive sense that although a food break. If the judge was getting we’d be happy to allow a machine to hungry later in the day, the request was tell us what our symptoms mean, or far less likely to be granted. which stock to pick, we need a human to dispense justice. There is a sense that Who will lead the way? it takes a human to tell if someone is So, for me, the interesting question is speaking the truth, pulling together the not whether AI is coming to law, but myriad of inputs from facial expressions, rather how is it going to get here? to speech patterns, to logic of argument. Who is going to make the investment But if a pretty basic camera can now needed to leverage the benefits AI can tell when someone is smiling and take bring? Most of the AI innovation in law the photo at that precise moment, a is coming from small start-ups, but as generally accepted lie detector can’t Rocket Lawyer and LegalZoom have be that far away. The ‘Silent Talker’ shown, start-ups and well-funded ABSs project is getting close – will this sort of may be able to develop the heft to start technology make decisions on who is to make some major investments soon telling the truth better, as unconscious (both Rocket Lawyer and LegalZoom biases get weeded out? still rely on live lawyers, who are still probably the costliest elements of their business models). The bigger players getting good at taking decisions for us. ‘Since that’s all in the game are getting active in this And since that’s all lawyers do for their space too. HP Autonomy’s Compass clients – advise them on the application lawyers do for their project is looking specifically at how of a set of rules to some facts, and clients – advise them AI can start to tailor suggested search make recommendations on what results for lawyers based on observed decision the client should take – why on the application individual user behaviour. hasn’t AI taken over the legal world? Why haven’t all lawyers and judges of a set of rules to The legal publishers have a vested stake been replaced by Hercules? in this: how can they make their content some facts, and make more accessible? Indeed, their content I believe there are two interrelated recommendations is pretty close to the core rule set that reasons. First, the global legal market our Hercules would end up relying on, is too small and diversified to make it on what decision the and so they might be the logical place worthwhile. When IBM decided to find to start. Their model could end up being a practical application for Watson – its client should take – based on disintermediation, going famous computer that won the US direct to the ultimate consumer of legal quiz show Jeopardy! – it first went to why hasn’t AI taken advice and cutting out the lawyers, with medicine rather than law. Why? Sure, over the legal world?’ intelligence engines applying the rules there’s a more immediately satisfying to the fact set and giving the advice. return in saving lives than resolving – David Halliwell LexisNexis’s recent acquisition of an ABS disputes; but the global market for licence is a fascinating and potentially medical diagnosis support is based on In any case, is human justice is really any far-reaching development. the same underlying sets of rules – how better? Two studies in the US suggest humans work – and is vast. Law is just that computers already have the edge. Or will individual law firms soon too diversified in different countries to In one, a statistical model for forecasting be able to make the investment justify the investment for now. US Supreme Court decisions was themselves? Despite the predicted

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1716 Limetime Advert AW6.indd 1 29/05/2014 10:32 impending end of Moore’s law will be watching developments (because the laws of physics mean that ‘Law firms may carefully. They might start to recruit there is an irreducible minimum size for end up marketing people with AI backgrounds. They transistors, shrinking transistors in chips might dip their toe in the water further will cease to make economic themselves not on through mainstream applications, sense), the computers behind Watson such as Microsoft’s Oslo and start to have shrunk from the size of a large their partners’ CVs, learn how standard AI engines can be bedroom to just three stacked pizza tailored or refined for their use. boxes in only three years. Although or the quality of their that might make the technology canapés, but on the Law firm leaders and GCs have a range affordable for law firms, firms will have of challenges ahead of them; you don’t to invest in converting the datasets size of their datasets need to be Hercules to work out that that represent their prior learning getting this one right could make the (consisting largely of unstructured and the quality of biggest difference to success or failure information in their document over the next five to ten years. management system) into something their algorithms.’ meaningful that can be leveraged for – David Halliwell David Halliwell is Director of client services. Knowledge, Risk and Legal Services at Pinsent Masons. He helps Pinsent But imagine what that could look themselves not on their partners’ CVs, Masons and its clients manage business like: a firm with a track record in a or the quality of their canapés, but risk. David qualified and practised specialist area of law is able to gain on the size of their datasets and the as a litigation lawyer before moving a competitive edge through mining quality of their algorithms. into law firm knowledge and risk its data in that area to predict legal management at a number of national outcomes better than its competitors For now, the most forward thinking law and international law firms. can. Law firms may end up marketing firms and in-house legal departments

LEGAL IT TODAY | 21 State of the art: Legal technology education

BY JOANNA GOODMAN

Legal technology education is now finding its way onto the curriculum at several leading law schools. Legal IT Today editor Joanna Goodman interviews Professor Andrew Perlman who heads up the Institute on Law Practice Technology and Innovation at Suffolk University Law School in Boston.

A recent legal IT opinion piece observed Suffolk University Law School in initially developed as part of Kia Motors’ that when it comes to using technology Boston is one of those schools, where external counsel selection process. to deliver legal services, most law Professor Andrew Perlman heads up the schools have barely scratched the Institute on Law Practice Technology What were the drivers for creating surface. But it now seems that things and Innovation, which has introduced the Institute on Law Practice are changing – and fast. Richard several modules designed to integrate Technology and Innovation, Granat’s eLawyering Blog highlighted legal education with new insights into and more specifically the formal the eLawyering Task Force’s Top Legal the delivery of legal services. Professor concentrations on legal technology? Practice Technology Schools Project Perlman, who is a technology enthusiast How popular are these options? which is reviewing top law schools and Google Glass explorer, is working We saw the trends in the legal market teaching legal technology modules. As with Casey Flaherty, corporate counsel place and recognised that we needed to of May 2014, the project had identified at Kia Motors, and e-learning providers shift gears. There are fewer traditional 13 top law schools offering relevant Capensys and TutorPro to automate legal jobs available for graduates, but legal technology education. the legal technology audit that Flaherty other parts of the industry are growing.

22 | LEGAL IT TODAY So it made sense to train our students for a different marketplace, applying ‘There are fewer traditional legal Richard Susskind’s use of the Wayne jobs available for graduates, but Gretzky analogy-- looking at where the puck is going rather than where it is. other parts of the industry are

As chief reporter for the American growing. So it made sense to Bar Association’s Commission on Ethics 20/20, I learned a lot about train our students for a different how globalisation and technology are marketplace.’ – Andrew Perlman changing law practice from an ethical perspective. My experience with the commission and as an educator who is looking at job placement statistics led management and process improvement. where lawyers are looking to innovate. me to get more involved with this work Students then have elective options, It is interesting to see how our courses at my law school. Fortunately, Suffolk’s including courses in entrepreneurship are translating into a variety of different Dean – Camille Nelson – gets it, and I at Suffolk’s Sawyer Business School. We roles and creating interesting new gladly accepted her offer to direct the cap it off with an externship experience, opportunities for our students. institute she created. where students can apply what they’ve learned in a ‘New Law’ context. We’re Process automation and The institute was launched in March hopeful that this collection of courses expert systems are often quite 2013. Late last year, the law school’s and experiences will give our students straightforward to use. What do the faculty unanimously adopted a legal a leg up in the market place compared concentrations offer over and above technology concentration –a kind of with traditional law graduates. the training offered by law firms law school major – that I proposed in and other legal services providers? this area. There is significant interest So it’s good news for the institute We want our graduates to know these among students, and an affiliated and also good news for future tools and be comfortable using them. student group called the Legal law firms? But we are also looking to train our Innovation and Technology Student Yes. It is good news for traditional students to design and build them. Association has been formed. Some industry players, like law firms, as well Marc’s course is part of that training. courses, such as Lawyering in an Age as market entrants and other industry of Smart Machines, taught by Marc players who are seeking law graduates I understand you are working with Lauritsen, are already oversubscribed. with the right skillset. Casey Flaherty’s legal technology audit. How is that project going? The concentration’s curriculum was The advisory board comprises mostly It’s going well. We’re working with Casey developed with the input of the of corporate counsel, vendors and Flaherty on two projects – one for law institute’s advisory board, which is co- educators. Do you have enough schools and one for practicing lawyers chaired by Marc Lauritsen and Jordan representatives of law firms, given and other timekeepers. Each audit Furlong. The board helped us think that many students may still want to covers a slightly different skill set, but through the kinds of courses that would start their careers in private practice? both are designed to ensure that basic put our students in the best position Some members of the advisory board, law practice technologies, such as word to succeed in a rapidly changing such as Jordan Furlong, consult for law processing and spreadsheets, are used marketplace. We quickly concluded firms and have a good appreciation for as efficiently and effectively as possible. that our students need to understand the challenges they face. We are also The law school version is already in beta how to deliver legal services more collaborating with large law firms on and is being tested with law students efficiently and effectively. In light of a number of projects, which we hope this summer. We are just wrapping up that objective, Lawyering in an Age of to get off the ground later this year. the pilot of the other version and plan Smart Machines teaches students how Innovative large law firms are hiring to move to the next stage at the end to use automated document assembly, new kinds of lawyers, like legal project of the summer. We will post additional expert systems, and related tools. managers and legal technologists, and information in the near future. Jordan Furlong’s 21st Century Lawyering we think our graduates will be perfect course teaches students to analyse the for those jobs. So we certainly haven’t The majority of law firms still marketplace, figure out what needs given up on BigLaw. measure – and charge – by time exist, how to develop services that rather than by output or results. meet those need and market those What organizations in addition to Do you think that law firms will have services effectively. My course focuses law firms are interesting to students to learn how to measure differently on the ethics issues involved in ‘New in terms of internships? in order to realise the efficiencies Law’ and requires students to work There are a range of new industry produced by leveraging technology? in virtual law firms using Clio as their players, such as eDiscovery providers, The billable hour is part of the problem law practice management tool to solve legal process outsourcers, automated in that it creates a disincentive for real-world ethical problems. Catherine document assembly and expert systems lawyers to work in the most efficient MacDonagh’s course covers legal project companies, and in-house positions way possible. Although we work in

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24 | LEGAL IT TODAY accelerate change, because it will force I’ve been a Glass Explorer for just ‘The movement lawyers to think more critically about over a year. One possible use of Glass away from the how they work and how they use is depositions. Instead of sending a available tools. whole team of lawyers to a deposition, billable hour will you could send one and have the Have you been inspired by any others or the client sitting remotely facilitate and other other schools mentioned by and suggesting possible questions the eLawyering Task Force? to the lawyer in the room. Another accelerate change, Absolutely. We’re not doing this alone. possibility—one that a US law firm because it will I drew inspiration from Michigan State’s recently employed – is to give Glass to ReInvent Law program, Vermont Law, jurors during a mock trial to see where force lawyers to and a few other schools. About a jurors are looking and when they lose dozen schools have been doing great interest or become distracted. I do not think more critically work in legal tech and innovation, think Glass will transform the legal but as there are over 200 accredited industry, but it has potential uses. about how they law schools in the US, it’s a small work and how they percentage. It shows how little work How do you use Glass to support is being done in this area that we can your work? use available tools.’ create an institute just over a year My concept is Glass in Class, which ago and already be one of the top ten allows students to engage with me – Andrew Perlman schools in the country. in a new way. They can send me text messages during class, and I can see an industry dominated by the billable I saw on the Suffolk website that the questions in my display and respond hour, there is some movement towards you are a Glass explorer. Do you at an appropriate point during the alterative fee arrangements (AFAs). have any suggestions for how class. It hasn’t stopped traditional oral I believe the movement away from Google Glass can be applied to questions, but it has brought more the billable hour will facilitate and legal practice? people into the conversation.

LEGAL IT TODAY | 25 Process mapping through Glass

BY TED THEODOROPOULOS

IT consultant Ted Theodoropoulos purchased Google Glass as soon as it was publicly available. Here he looks at its application in the legal sector with particular focus on process mapping.

Google Glass has been making Apps add value available. However, in the early days of headlines since well before its public Critics question the usefulness of Glass the iPad many could not understand release on April 15th, 2014. This and remain unconvinced of its longevity how the device could be useful. wearable technology has the ability to in the technology world. It should capture the first-person perspective with be noted, however, that this same Existing apps for Glass run the a camera device built into the eyewear, scepticism was present when the iPad gamut of personal and business use. leaving the Glass user completely hands was first introduced. The creation of Consumers benefit from apps for free. Just as Apple disrupted markets third party apps tend to ease scepticism navigation, perfecting a golf swing or with the iPhone and iPad, Google is over time as they deliver more value even shooting a firearm. As a Glass targeting the wearable technology and acceptance for the product – just Explorer, I can surf the web with simple market with Glass. The device presents as the iPad experienced. The iPad was voice commands, snap photographs new opportunities and use cases for released in the spring of 2010 and has and best of all, capture video of my both consumers and businesses needing since sold over 170m devices as of last son coming down the slide while I access to hands-free computing. year with over 475,000 native apps have both hands free ready to catch him. From a business perspective, Glass also raises issues. Privacy is a international business travellers are major concern as there are no visual able to translate street signs instantly cues indicating whether the device ‘The future of Glass with apps like Word Lens. The is recording. Just the presence of healthcare industry instantly found Glass can create angst for bystanders remains to be seen; value in the hands free component of particularly if they don’t understand the however, the future of Glass by training surgeons during real product. A common misconception is medical procedures. Attorneys have that Glass is always on and capturing wearable technology been using Glass for digital dictation everything in its surroundings through and juror selection. The law firm video – much like a surveillance device. appears promising.’ Fennemore Craig lends clients Glass to Glass has even been accused of show jurors first-hand what life is like bringing an end to privacy. – Ted Theodoropoulos for personal injury plaintiffs.

26 | LEGAL IT TODAY Process mapping through Glass of the Hawthorne effect on the data. Looking ahead How else is Glass adding value in the The Hawthorne effect is a phenomenon Technology’s role in legal services Process mapping legal industry? Attorney and friend, in which subjects in behavioural studies is becoming increasingly prevalent. Nicole Black from MyCase, predicts that change their performance in response Innovation has been shown to add value Glass adoption will accelerate in 2016. to being observed. The Hawthorne and gives firms that are open to new Black’s timeline parallels the adoption effect study suggested that the novelty ways of operating a competitive edge. through Glass rate that iPads experienced in legal. of having research conducted and the However, that doesn’t mean that Glass It took a couple years for apps like increased attention from it could lead will be infiltrating firms tomorrow. With TrialPad, iJuror and Dragon Dictation to to temporary increases in productivity. the steep cost of $1,500 and much enter the market and give the iPad real For example, a study conducted by ambiguity around app development uses in a legal setting. While existing researchers at Newcastle University and its overall usefulness in the legal Glass apps demonstrate little relevancy revealed that by simply placing images industry, firms are not likely to blindly for legal, the hands free component of the human eye throughout a spend the cash without a concrete use coupled with the camera can still add cafeteria, people were twice as likely case that derives significant value. This is tremendous value – Glass can be a to clean up after themselves. The prudent and not at all surprising. game changer for process mapping. study demonstrated with statistical significance that ‘the physical presence Using Glass for personal injury cases, A process map is a pictorial of other people in the room or other juror selection or process mapping may representation of a sequence of actions non-verbal cues of proximity or visibility’ or may not be the use case for your that comprise a process. Process maps changes behaviour. firm. The future of Glass remains to be are used to describe, document and understand the work we do. They can ‘Attorneys have been using Glass for digital either be used to simply document a given process to hand off to a new dictation and juror selection. The law firm hire or they can be created to identify areas of complexity and re-work. Often Fennemore Craig lends clients Glass to show times, process maps will reveal hidden factories allowing us to eliminate non jurors first-hand what life is like for personal value-add activities. With alternative injury plaintiffs’ – Ted Theodoropoulos fee arrangements on the rise, firms are being forced to be more efficient and process mapping can be just the tool to We have all been exposed to the seen; however, the future of wearable streamline inefficient processes. Hawthorne effect, whether or not we technology appears promising. realize it. When being observed, we Google’s introduction of Glass has Using Glass challenges the status quo tend to ‘be better’ or do things ‘the led to a conservative forecast of the for process mapping. Traditional process right way’. You may run a little bit faster wearable technology market to exceed mapping exercises consist of observers when passing your neighbour during $6B by 2016. Of course, this forecast looking over the shoulder of workers your jog or even decide to recycle an is a consumer-driven phenomenon as they perform tasks. This method of old document if you know someone is but like any other consumer-driven collecting information is time-consuming watching you, even if you typically do device, the popular ones always and results in a small number of not recycle. In the context of process make their way into the business observations. Glass could be leveraged in mapping, an associate may document a world eventually. Once the price has process mapping by having the associate client request as soon as it is received if dropped, more legal-specific apps are wear the device continuously throughout they know someone is watching them; created and overall familiarity and the day until enough information is whereas generally, documentation acceptance increases that comes with collected and an adequate sample size is may not actually occur until after the time, Glass will become more relevant gathered. Doing so would create a first- meeting has been scheduled. Using in the legal industry and will provide hand perspective of the tasks performed, Glass can help prevent these fallacies different benefits to different law firms potentially uncovering additional steps and help produce raw, unfiltered results. depending on their needs. or exposing re-work. If an observer were to shadow an associate, this may last Of course, using Glass for process Ted Theodoropoulos is the President for several hours at most. If an associate mapping does not come without of Acrowire, an IT consulting firm were to wear Glass, data could be some risk of the Hawthorne effect. specializing in technology solutions for collected for a longer period of time, Associates may act slightly different legal services. Ted helps firms increase such as a week, which would result in a during the first several hours of productivity and eliminate inefficiencies, larger sample size of the tasks performed wearing the device. However, the ultimately accelerating growth through ultimately providing more data for better impact should be less significant than SharePoint development, software decision making. a person standing over one’s shoulder development, business process and provides a larger sample size to be improvement and cloud services. He can The Hawthorne effect collected. Wearing Glass feels similar be contacted at [email protected] Wearing Glass versus hiring an observer to a bulky pair of eyeglasses so the would also likely reduce the influence transition is fairly seamless.

LEGAL IT TODAY | 27 Internet of Things: it’s not science fiction

BY ANTHONY WALLER

Olswang partner and technology practice co-head Anthony Waller, whose clients include high-growth technology companies and investors, offers some insights into the Internet of Things and connected living and the legal challenges and opportunities presented by this rapidly growing market.

Growing up in the 1980s, I was a commentary has looked a lot like The with the world around us and the way regular reader of seminal British weekly World of Tomorrow – more like fun we do business. Paradoxically, I strongly comic Eagle. In between stories of Dan fiction than reality. That, however, is suspect that in ten years’ time very few Dare chasing the evil Mekon around the about to change. people will talk about the Internet of galaxy, Doomlord, The Thirteenth Floor Things. IoT will have become so integral and much other fun nonsense there The connected fridge to our everyday lives that it will just be was often a feature called The World of The poster-child of IoT has for several the way things work. Tomorrow. The World of Tomorrow was years now been the ‘connected fridge’. a window into the future predicting If you look it up on the internet you will So what is this revolutionary concept gadgets, gizmos and ways in which our find page after page of search results and why can I be so confident about lives would change come our time to including analysis and commentary about its potential impact? The Internet be grown-ups. Back then The World this as yet unrealised dream. Stories of of Things is a catch-all term for the of Tomorrow looked pretty promising. fridges that will automatically order your technology that connects objects to the Disappointingly, however, I am still food for you when you run out and help internet and allows those objects to not commuting to work strapped to you explore new recipes based on your work together on a system. We have all a jet-pack, nor do I live in an tastes and preferences abound. The got used to connected devices on our underwater city and drive my family cynics will no doubt be raising a gentle desks and in our pockets, but IoT allows around in a submarine. sneer at this idea, which has become those devices to interact with smart a bit of a gimmick. In some senses the objects and appliances. IoT is often Over the past few years a huge amount focus on intelligent white goods has mentioned in the same breath as M2M has been written about the advent detracted from the true potential for the or machine-to-machine communication. of the Internet of Things or IoT as underlying technology. IoT is another M2M is the technology that makes IoT it is commonly known as (#IoT for revolution in the making. It will change work; it allows the connection between the Twitterati). To date, most of the the world we live in, the way we interact devices and the network over which

28 | LEGAL IT TODAY one machine can talk to another. It is sometimes described as the plumbing of IoT.

Looking a little further at the technical chain involved in IoT it can be broken down in to a number of layers and at each layer there are separate businesses providing services and deriving value from those services. Much of what has been written about in IoT has focused on the objects and devices collating the data. These devices range from smart energy meters in our homes to the alluring world of wearable technology such as the plethora of fitness-bands (Fuel, Jawbone etc) now available and the range of smart watches already on the market. These high-profile bespoke products are likely to be subsumed into our everyday lives in the very near future. Just as smart-meters will track your energy usage and switch off lights when they are not needed, watches will track your heart rate and alert your doctor if there is a problem. As silicon becomes ever thinner there reason to think that any object can be connected right down to the pipes, wires and fabric that make up the world around us.

$14.4 trillion of value across all industry ‘The Internet of Things is a catch-all term for sectors by 2022. The potential for the the technology that connects objects to the industry is validated by Google’s $3.2bn acquisition of NEST, the connected internet and allows those objects to work thermostat that learns your energy consumption patterns and adapts to together on a system. We have all got used your way of life. The industries most likely to see significant changes driven to connected devices on our desks and in by IoT in the short to medium term are healthcare, automotive, logistics and our pockets. The IoT allows those devices to energy but IoT is also already having an impact in a wider range of sectors interact with smart objects and appliances.’ such as agriculture, education and – Anthony Waller infrastructure. It is not a significant leap to see how it will also have an impact on the service industries, including the IoT enthusiasts envisage an environment there are the ever-important telecoms legal profession – where efficiency, cost where everything around us will network and services businesses savings and new business opportunities be sending data all day, every day. controlling the transmission and routing are paramount. IoT will help law firms Businesses are creating applications that of digital signals between applications to manage their resources in a more store this ever increasing array of digital and devices and transporting those efficient and effective way, whether signals sent by connected objects. Those signals between devices and platforms. that be in the buildings we work in or applications store and then process that the people we work with. An article I data to form a value-add service to a A growing market read recently, with its tongue firmly in business or a consumer and accessed Much as this might sound like science its in cheek, envisaged a world in which by businesses and consumers using a fiction, this technology is already at lawyers will be fitted with connected proliferation of platforms have sprung-up our fingertips and is having an impact bands that track daily movement, help across different sectors. The applications today. Analysts expect the number of automate the recording of time and are making the world around us safer, connected objects to reach around monitor when you are dozing off in more efficient and more relevant to us 24bn by 2020 and Cisco recently important meetings, sending you a as individuals. Finally, in the background, predicted that IoT would be driving little buzz to keep you awake! A little

LEGAL IT TODAY | 29 Better together

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30 | LEGAL IT TODAY Better together

far-fetched perhaps, but somewhere Much of the immediate concern encryption and device authentication in this rather dystopian vision there’s a however is around what this are key, as is the challenge of providing good idea trying to get out. proliferation of data will mean for us an adequate protection against all and for our security and our privacy. false requests for information and Legal challenges – and opportunities The mass of data created by IoT will unauthenticated commands. In the EU More importantly and immediately significantly increase the locations there is no consensus on whether the for law firms, with technological and jurisdictions where our personal current Data Protection Framework change comes both challenges and data resides. As our watches, cars and is sufficient for IoT and M2M. What opportunities, all of which drive a thermostats all start to collect and is currently at stake is the right to need for legal services throughout push critical data about our health, our be invisible within the concept of the IoT ecosystem. Whether we are location and our interests into the ether, ‘connected living’, how to guarantee helping businesses to protect the concerns about who, if anybody, owns that the explicit consent, purpose intellectual property underpinning that data, what it can be used for and and proportionality principles, data this new technology, advising on the what our rights are to retain control anonymisation and privacy by default consolidation of IoT businesses through over it will come to the fore. Data are feasible and practical. mergers and acquisitions or supporting the commercial arrangements across the By delving too deeply into the legal entire IoT value chain, legal services are ‘As our watches, cars risks around IoT, however, we risk losing an essential ingredient to helping this and thermostats start sight of the prize. Not all the data made technology thrive and develop. Despite available by IoT is personal data and a critical study on the governance to collect and push much of it will simply be about ensuring of IoT carried out by the European that the objects around us talk to each Commission, and high-level discussions critical data about our other and to the devices in our pockets All the tools you need to manage your Document collation taking place on both sides of the Atlantic and on our wrists in an intelligent way, business-critical documents from a single on the topic, including for example health, our location to help us access a level of information Metadata cleaning technology partner. at BEREC (the European regulatory and our interests into never before possible. My jet-pack may Comparison body for electronic communications) remain a pipe-dream but I am confident DocsCorp’s integrated document productivity and at the Federal Trade Commission the ether, concerns that IoT will play an important part in Bundling suite is simple, intuitive, seamless. in Washington DC, regulation has ensuring that our World of Tomorrow is a yet to catch up with the fast-paced about who, if better, more efficient, safer place to live. Document processing Request a 30-day trial now! development of IoT. To date – other than anybody, owns that A world, you might say, that just works. Redact regulatory driven numbering allocations – there is nothing legally tailor made for data, what it can be Anthony Waller is a partner and the Co- Mark Up it. The challenge for lawyers therefore is Head of Technology at Olswang LLP. As to advise clients as to how they fit into, used for and what our well as advising established international OCR and take best advantage of, the existing rights are to retain companies in the technology sector on Annotate Your documents. Integrated. regulatory environment of electronic M&A transactions and public company communication networks and services. issues, Anthony is a leading member [email protected] control over it will Review Creating or amending relevant and of the team acting for high-growth www.docscorp.com/bettertogether effective regulation to support this come to the fore.’ technology companies and investors new market is rapidly rising up the into the sector. Anthony tweets about political agenda. – Anthony Waller technology @anthonyewaller

LEGAL IT TODAY | 31 Big data and legal: from first date to newlyweds!

BY JOBST ELSTER

The legal sector’s affair with big data is evolving into a serious, committed relationship. InsideLegal’s Jobst Elster, who is a member of the ABA’s Big Data Committee, follows its progress from obscure conference keynote to this year’s buzzword and the driver of numerous innovative ways of delivering legal services.

32 | LEGAL IT TODAY Back in January, I was asked by a US- ‘2014 is the year law operations. UK IT Journalist Adrian based legal publication what might Bridgwater, who I have collaborated with lie ahead for big data in the legal firms, legal vendors on big data content and predictions, community. At the time, I thought correctly points out that probably the the dating analogy was very fitting and corporate legal best way for us to appreciate that 2014 to describe the different stages of really is the year that big data takes hold, engagement we (the legal community) will seek a serious big grows up and becomes an integral part had with our potential big data love data relationship of our modern IT landscape is to look interest. So while 2012-13 was what at those areas where we ourselves are I consider the equivalent of legal big and maybe even contributing to the big data mountain, data’s first date—‘Who are you? Do I such as eCommerce, internet of things like you? Will I see you again?’—2014 ‘pop the question’ (IoT) and Fitbit. He refers to “big data by is the year law firms, legal vendors the people, of the people and if executed and corporate legal will seek a serious if things are really at the right level of analytics, big data for big data relationship and maybe even humming along.’ the people”. Our increased awareness ‘pop the question’ if things are really of how big data is affecting everyday humming along. – Jobst Elster life (and we have not even talked about IBM’s Watson yet!) will sooner or later The argument whether big data has translate to our work environment and a place in the legal profession is now folks who are dealing with the ethics help us imagine how we can carry big moot. A growing number of law firms and information governance aspects data over to our day jobs. will initiate big data projects, most of of big data. In terms of the big data them focused on business analytics and rubber hitting the road, I have talked Matchmaking angels predicting future growth/revenue, some to fellow big data observers including An increasingly accurate indicator of of them launched on the practice side to Manzama’s Peter Ozolin and PinHawk’s the realness factor regarding big data is help increase lawyer ‘win rates’. While a Bill Lipner who feel strongly that big data investment in technologies and services handful of firms have branded big data can serve a key role in helping firms to that aim to meet increasing demand. information security and privacy practice identify where their clients are at risk Enter the ‘matchmaking angels’. groups, many others will join the fray, in as well as which markets hold promise. large part due to an alarming increase Furthermore, we all agree that big data AngelList, a platform and inventor- of ‘Target data breach’ scenarios, and will help predict trends and produce to-investor collaboration space for recruiting for top big data legal talent big dividends, especially in the context startups, is fertile ground for not only will heat up. My recent participation in of demand generation and business legal ventures but especially big Atlanta’s Big Data Week drove home the extent of the data science talent pool dearth … as every company I talked to was hiring data experts and analysts.

Beginning this year, firms will have three to five years to leverage big data as a game changer for valuing their work, Big data and legal: better serving clients, and drastically reducing the risk related to bet-the- firm decisions. Come 2020, big data will be commoditized to the extent from first date to newlyweds! that information access, modelling and analytics are assumed assets. Moving forward, the only thing that matters is how to use it to best serve and retain your clients.

The big data dating game So as part of my ongoing quest to round out the legal big data story, I have been chatting up the legal community to get to the bottom of where we are in the big data dating game. My involvement with the ABA’s Section of Science and Technology Law Big Data Committee has given me access to a broader group of experts including data scientists, technologists and lawyers and corporate

LEGAL IT TODAY | 33 data-type bootstrappers. At last glance, Moneyballing legal inroads and getting the attention of the the AngelList included 500 legal vertical Let’s get back to the ‘moneyball’ value VC community. Other more established startups with an average valuation proposition – levelling and redefining contenders like Lex Machina (moneyball of $4.3m and 725 companies in the the legal playing field with metrics, for IP), Sky Analytics (Legal spend) broader big data analytics space. visual analytics and predictive patterns and Manzama (big data for listening According to Matt Turk, a partner at based on past legal outcomes and trial platforms and content aggregation) FirstMark Capital and the organizer scenarios. Startups like Judicata (legal are serious business. of the wildly popular Data Driven research via big data); Ravel, Picture It NYC events, analytics has been a Settled, Juristat and Jurispect (visualising Other technology segments to look out particularly active segment of the big big data for predictive case and trial for include big data applications, big data data ecosystem spanning spreadsheet- outcomes); MineCRM (big data contacts powered marketing, CRM tools, or fraud type interfaces to timeline animations and context), and Counselytics (legal detection solutions as well as legal spend and 3D visualizations. In legal, much agreements via big data) are making analytic apps that help law departments of the early activity, starting with determine proper legal spend strategies. how we initially frame the big data Another way law firms will start to access conversation, has been focused on ‘An increasingly external data is through data-as-a-service analytics, predicting future outcomes accurate indicator of providers, data aggregators that not and business changes based on data. only collect high velocity, high volume the realness factor data from various sources, but also While the aforementioned legal startup attach metadata to it in order to support phenomena and related potential (and regarding big data filtering and sub selection. The likes of ‘legal saviour’ personification) has been Manzama and Lex Machina are already well documented, the startups focused is investment in doing this as are companies outside the on big data-type data and visual technologies and legal sector like Relationship Science analytics, legal spend, research, and who provide a ‘LinkedIn on steroids’ various ‘moneyball’ scenarios are for the services that aim offering that pulls in millions of external most part still flying under the radar. data points to enhance users’ business And to be honest, with most law firms to meet increasing development contacts and the value of looking across the street to see what these connections. their rivals are doing, keeping potentially demand. Enter the game changing big data technology matchmaking angels.’ So when reflecting on my original point or predictive analytics approach under that legal is engaging in a more serious wraps, is understandable. – Jobst Elster big data relationship, I encourage you to be on the lookout for anything from serious hand holding to extremely sappy romantic interactions. Also, before you turn your head in disgust at the extreme public display of affection (PDA) take a closer look and envision yourself in a similar scenario ... either a brand new relationship with major promise or an established one that will blossom thanks to the big data flame.

Jobst Elster is InsideLegal’s head of content and legal market strategy. He brings extensive experience in market analysis, market research, public relations and product marketing to the legal industry. He has served as a legal market strategist for the last 15 years, advising companies entering the legal market, involved in mergers and acquisitions, and expanding operations overseas. Jobst regularly writes and speaks on legal technology, technology innovations and futures, legal marketing and big data. He is a member of the ABA’s Big Data Committee and its newsletter editor. He can be reached at [email protected] or via Twitter @InsideLegal

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