Law360 Pulse: A Model for Optimal Legal Tech Investment Strategy
This article originally appeared on Law360 Pulse on February 21, 2024. View the original article here. In a 2023 survey,[1] litigation support company U.S. Legal Support asked lawyers and legal professionals what legal tech trends emerged during the year and how they expect their use of technology to change in 2024. Predictably, the survey noted significant growth in the use of generative artificial intelligence tools within the legal industry, predicting further expansion this year. Legal organizations are being challenged by the pace of change, struggling to work out the right investment strategy. The answer to this challenge is to get back to basic principles. The model for optimal legal department efficiency is not difficult to articulate. It is based on an understanding of where workloads belong, according to the basic functions and priorities of a corporate legal team. The model does not depend on generative AI, nor indeed on any particular technology or tool. Generative AI offers the exciting prospect of helping to shift some types of work from one part of the model to another — but without changing the basic construction of the model. Let’s call this model, which categorizes workloads, the Matrix.[2] No-Touch No-touch workloads are fully automated: They do not require any handling by legal professionals. The classic example is purchase order processing on standard terms. A less dated example would be the chatbot. Properly designed, an AI-powered chatbot can automate a huge range of activities that traditionally required a live interface between business client and legal professional. Scenarios include the selection of a standard legal document for a particular transaction, and user Q&A resulting in the delivery to a client of a FAQs sheet on a given legal topic. The power of the generative AI tool is to make the client engagement experience natural and intuitive. Low-Touch According to the Matrix, low-touch workloads are of low to mid complexity and either semi-automated or outsourced. Outsourcing means shifting the workload as efficiently as possible away from the corporate legal department. Traditionally, the work might have been outsourced to a law firm, but because law firms offer specialist expertise on tap, that would be the most expensive form of legal support. Low-touch work should be in the least expensive category. Historically, this is the category where we have seen the biggest concentration of corporate inefficiency. Until the emergence of alternative legal service providers, or ALSPs, low-touch work was either outsourced to a law firm, sucked up by the in-house team or staffed by the department, hiring more employees or using interim contractors. ALSPs emerged to provide a more cost-efficient model for this category of workload, offering process simplification and standardization coupled with tight management of a frequently offshored team of legal professionals. Depending on the type of work involved, technology has become an increasing feature of the ALSP value proposition — think e-discovery, for example. I’m going to say something controversial: Generative AI is introducing confusion into the marketplace. Legal departments are reading and hearing that the technology can drive radical levels of automation, scale and speed into workloads that previously demanded in-house or external resources. The idea is that the technology can take over work that people were handling, so the race is on to invest in use-case development to operationalize this capability. The point of confusion is that many corporate legal teams believe that they should be licensing the generative AI tools and working on the design and build of the solutions. If they are doing that for low-touch work, they are making a mistake. Building a generative AI solution for low-touch work is not a one-time event. The tool will require ongoing quality control, for starters. But there is another big issue to consider. The industry is just at the beginning of the generative AI revolution. There are so many tech vendors to choose from, and indeed the optimal design features of the tools are still taking shape — for example, with selections being made about the best large language model menu options that should be used to provide the foundations of the solution. So here is the point: Law departments building their own solutions are being asked to place a bet on the right technology, and then to make the necessary resourcing investments for the ongoing process management and continuous improvement. These commitments might make sense for high-value workloads, but not for low-touch matters. For low-touch workloads, in-house teams should rely heavily on their technology and service partners to bring generative AI to the table and ensure that the work is managed to high standards, low prices, maximum efficiency and continuing improvement. Why? Because then the legal department can start focusing on fully automated solutions — no-touch work — and on how to innovate around its core activity. This is the paradox. By being drawn into investments of time, money and energy focused on building generative AI use cases for low-touch work, legal departments are actually diverting attention away from the areas where they should really be innovating. Core The Matrix describes the core workload as being the principal focus of the in-house team. There are two perspectives to consider: the company itself, and the lawyers who make up the department. From the company’s point of view, a legal department is worth having if the business requires similar types of legal support on a sufficiently frequent basis to warrant employing its own lawyers rather than instructing external counsel. The advantages of the in-house team go beyond simply saving money, though, because the employee can build relationships internally and develop institutional and industrial knowledge that may be hard for the external lawyer to match. And from the perspective of the lawyer, a major attraction of an in-house role is precisely that ability to build deep connections with the business client and establish levels of commercial influence that few external advisers could aspire to. So we can develop our definition of core workload along the following lines. The type of work should: Be valuable to the business
Blueprint for Successful Second Request Document Review
The question, “Have you worked on a second request?” is often met by a sigh or a knowing glance and accompanied by a story that shows herculean strength or the agony of defeat. Or both. Because of the sheer number of documents that require review in a short period to an exacting standard, everyone who has worked to support law firms on a second request, as a matter manager on the client side, as a project manager for data or review vendor or as a reviewer has a story. Crucially, for corporate clients and their legal teams, the outcome carries significant repercussions and, therefore, requires a high degree of expertise and precision in effectively responding to the Federal Trade Commission (FTC) or the Antitrust division of the Department of Justice (DOJ). What is a second request? When a company is going through a merger or an acquisition, the FTC or the antitrust division of the DOJ, depending on who has jurisdiction over the matter, goes through a very detailed and thorough review to make sure that there are no antitrust concerns. The first step is producing a limited number of relevant documents, often called a first request. From there, the government will assess whether it will approve or disapprove the merger or acquisition or needs more information. If it requests additional information, this is called “the second request.” A corporation usually has two months to respond to and produce accompanying evidence for the second request, which means a large volume of emails and other documents generated by the business have to be reviewed and categorized for production – quickly. Navigating the intricacies of Second Request Document Review is a crucial competency for corporate legal departments, law firms, and litigation attorneys. This process calls for a meticulous approach to prevent costly legal pitfalls and ensure compliance with antitrust laws. This blog will provide a blueprint for a Second Request Document Review by outlining the essentials and actionable best practices. The Blueprint 1. Preparation Preparation is critical for a successful Second Request Document Review. Highly orchestrated planning supports complying with requests while maintaining the transaction’s momentum. Data Collection The client and counsel will work together to structure and organize the information needed to respond to the second request. Once they know where the information is, they will work with their collections vendor to collect data from various custodians. Define review population Once the data collection is complete (or complete enough), the data vendor defines the appropriate review population by working with counsel and the client on early case assessment activities and search term checks. Because of the time constraints, it may be necessary to start a review of some of the documents before all collections are complete. Protocol From there, counsel should create a document review protocol to train the document review team. The document review team will reference the protocol, accompanying queries, and calibration logs for guidance during the review. Depending on how the review is structured, there may be a need to have several document review protocols based on the timeframe, custodians’ seniority, and other essential factors. Time management A considerable part of the success of a second request project is time management. A best practice is having a timeline with built-in buffers. 2. The Team The ability of a document review provider to quickly assemble the right size team with the ability to scale as needed is critical. Additionally, an internal management structure that divides the team into small groups led by an experienced team lead allows for accountability and agility. Moreover, to ensure an efficient review process, the project manager must have up-to-date information about the status of the various workflows at any given time. That is why the lead project manager must delineate the roles and responsibilities of the project team from the outset. Finally, having an offshore review team that can provide round-the-clock resources allows for maximum efficiency and cost savings. Read Case Study » 3. Tech Tools Analytics and artificial intelligence (AI) are essential to ensure the document review is as efficient as possible. Using these tools reduces the number of documents that attorney teams look at and could include the following. Propagation of coding to duplicate documents and lesser included email threads Predictive coding methods such as Technology Assisted Review (TAR), Continuous Active Learning (CAL) Generative AI for privilege logs and to summarize documents 4. Workflows Paying close attention to workflow and process is critical once you have the people and technology in place. The project team needs the agility to deploy different workflows using the tools for different stages of the review as required. Here are just some questions that are relevant as the team considers workflow. Which teams are working on the first-level review? Where are they located? Are there documents that do not need review? A less-than-thorough review can jeopardize the entire process, so it is essential to establish cross-checks and validation steps. What types of QC checks are there? How much QC is counsel going to do? Will we use statistically significant sampling methods to ensure the review is on the right track? Ensuring the confidentiality of sensitive documents is paramount. Robust protocols must be in place to guard against exposure. Are we able to use AI to identify HIPAA and PII? Are there redaction propagation tools for HIPAA and privilege redaction that ensure consistency? Ensure that privilege logs are deduped in the first instance to ensure consistency. Do we need to generate an accompanying names list? Do we need to have titles for the individuals that are listed? Could we limit the titles to just those working for the client? Is there going to be one production or many rolling productions? How often? 5. Communication and Collaboration Win the Day While it may seem obvious, the element that ties together these best practices is the imperative of consistent communication. The dynamics between corporate legal departments, law firms, and litigation attorneys are to be nurtured, as clarity in
Integreon Launches New Online Resource, Integreon.ai to Provide Generative AI Insights and Solutions for Legal, Creative, and Business Professionals
February 14, 2024 (AUSTIN, TX AND LONDON) – Integreon, a global leader in outsourced legal, creative, and business solutions, today announced the launch of its new online resource, Integreon.ai showcasing it’s suite of artificial intelligence (AI)- enabled tools. The launch marks a significant milestone in Integreon’s 25-year history of innovation, underscoring its commitment to integrating AI and large and small language models (LLM / SLM) to better serve its clients and transform the delivery of legal, creative, and business services. Integreon.ai offers a view into Integreon’s structured approach to curating technology solutions that also balances the fast pace of innovation with effective risk mitigation. This long-held approach supports Integreon’s position as an industry leader in AI-enabled solutions, supporting both the delivery of services and efficiency within the organization. “Integreon is not just introducing new tool sets; we are redefining the possibilities for efficiency and insights across our client base and for the industries we serve,” said Subroto Mukerji, CEO of Integreon. “Our 25+ years commitment to staying ahead of rapid technological advancements ensures that we provide clients with access to best and right-fit solutions.” Integreon’s strategic and client-centric approach to AI adoption has been a cornerstone of its operations. The company has consistently prioritized client needs, leveraging AI and LLMs to redefine innovation in its service offerings. Through meticulous listening, analyzing, testing, and selecting processes, Integreon has identified both strategic partnerships and development opportunities that can be tailored to meet the evolving needs of clients and the organization. Integreon’s suite of AI tools demonstrates Integreon’s capability to augment human intelligence, enabling businesses to automate tasks, make informed decisions, and enhance productivity. Among the innovative solutions featured are: Leah by ContractPodAi: The groundbreaking partnership with ContractPodAi positions Integreon as the first gen-AI-led legal services provider, offering advanced AI capabilities for a range of legal and business services. CyberHawk-AI: This proprietary tool is the first machine learning (ML) based cyber incident response platform automating first pass review to dramatically speed up turnaround times and ensure review accuracy to meet compliance timeframes. Creo: Integreon’s proprietary presentation tool that automates tasks associated with presentation material creation, including formatting, design editing, and image enhancement. Integreon invites businesses to explore how its AI-enabled solutions can transform their performance and set a new standard in their respective organizations. For more information, please visit www.Integreon.ai. About Integreon For 25 years, Integreon has been the trusted, global provider of legal, creative and business outsourced services to corporations and law firms seeking to expand their capabilities and transform their performance. The company’s 3,500+ professionals provide round-the-clock support across a range of managed services—from legal and compliance to creative design, content delivery and administrative support—via global delivery centers on three continents. The company is recognized for technology innovation, including industry-first applications of AI-enabled solutions. Integreon is deeply committed to client success, consistently delivering innovative, tech-enabled solutions that improve agility and efficiency to drive business performance. Integreon is owned by EagleTree Capital, a leading New York-based, middle-market private equity firm with over $5 billion of assets under management. For more information about Integreon’s range of services, email [email protected], visit www.integreon.com and follow Integreon at LinkedIn, Twitter and Facebook
ALM Webinar: The Value of ALSPs for Optimum Results and Maximum Efficiency in a Dynamic eDiscovery Landscape
A challenging but exciting change is fast approaching in the world of eDiscovery. For all legal professionals, it’s critical that they leverage the benefits of technology for efficiency and early insights into data while also maintaining robust and defensible data management. Learn more about the pivotal shift in the eDiscovery landscape during an exclusive webcast on the transformative role of Alternative Legal Service Providers (ALSPs). Join industry experts as they unravel the evolving significance of ALSPs, moving beyond conventional notions of cost efficiency and scalability. Key Highlights: The New eDiscovery Landscape: Dive into the dynamic changes driven by AI evolution and the emergence of complex data types. Learn how these factors are shaping the future of eDiscovery. Strategic Value of ALSPs: Understand how ALSPs bring not just cost efficiency and scale, but invaluable expertise crucial to the current legal landscape, ensuring attorneys can focus on the advice and case management their clients/organizations expect. Lessons from the UK and US: Explore recent failures in eDiscovery processes and extract valuable insights for navigating pitfalls. End-to-End vs. Best-in-Breed: Delve into the debate of choosing between comprehensive eDiscovery partners and specialized best-in-breed options. Q&A Session: Engage with panelists as they address your queries on the evolving eDiscovery landscape. Register for free here: Register Here
3 Challenges that Prevent CLM Implementations from Achieving Peak Performance (and How to Overcome Them)
After investing in a contract lifecycle management (CLM) system, many organizations realize that getting a return on investment can be challenging, or worse, never realized. The most common mistake is thinking that all it takes is putting the system in place. That is not the reality. Gaining desired results from your CLM platform is a continuous process that requires resources and expertise to help organizations streamline all elements of your contracting process. No matter where you are on your CLM journey, post-implementation care and feeding is vital to ensure that the processes, tools, systems, and people you have in place work smoothly leveraging established best practices and a cycle of continuous improvement. With proper training and expertise, an effective CLM can drive efficiencies and improved outcomes across a number of key functional areas. How to Overcome 3 Common CLM Challenges Some firms choose to establish outside of their headquarters or main locations, their own There are numerous potential challenges companies encounter that can lead to a CLM project not delivering its intended value. This blog will explore three common roadblocks that can hamper CLM performance and efficacy but can also be resolved with the right tools and support. Challenge #1: Burdening In-house teams with CLM admin activities Your in-house team most likely has their hands full already with day-to-day responsibilities and adding CLM admin duties to the list takes time away from more strategic tasks that rely on these resources. These menial but necessary admin activities range from configuring templates and keeping clause libraries updated to chasing signatures and uploading signed agreements. The most time-consuming admin process is the managing, testing, and training that comes with each new vendor system release. Solution: Partner with a service provider that enables cost-effective scalability to lighten the load. External support can relieve the burden of CLM admin work, whether your contracts department needs a few extra hands or a significant extension of capacity to manage whole categories of transactions. Alternative legal service providers are well positioned to help organizations manage their CLM platforms via resources with legal and specific contracts expertise. These trained professionals act as an extension of your team, helping to manage admin duties and keeping in-house teams up to date with vendor changes. Download fact sheet » Challenge #2: Accessing key information and metrics to make informed decisions. Access to metrics and other reporting is crucial for legal leadership to help them report on department performance, improve internal and external relationships, and ensure data hygiene, which is essential to your CLM platform. Without the requisite experience, including the right enabling technology, in-house teams may not be able to employ the best practices and processes to make building and accessing dashboards and reports quick and seamless. Solution: Make data hygiene a key tenant for peak-performing CLM. There are always opportunities to optimize CLM platform process and content. Organizations should break down existing processes, workflows, and their current technology environment to identify gaps and apply data science and process engineering to streamline the system. Take it one step further and harness robotic process automation (RPA), artificial intelligence (AI), and workflow technologies to accelerate processes and alleviate manual labor. Challenge #3: Struggling with system adoption and change management Not all organizations are equipped to handle change management and can struggle with system adoption for several reasons, such as a lack of tracking system usage, user reluctance, and lack of support. Teams tasked with using CLM software also need to be sufficiently trained and, if not, may experience frequent issues as users, resulting in frustration and the inability to maximize the system’s capabilities. Solution: Enlist help from industry veterans. Engage with a respected service provider with a track record of providing change management support and training and is able to work with most major CLM platforms. Best-in-class service providers can also employ a mix of lawyers, paralegals, process engineers, technologists, and data managers to ensure that a team with the right skills and expertise can tailor-fit their services to your organizational needs. One of the most desirable aspects of working with a service provider is having a dedicated help desk. This service ensures seamless assistance for users worldwide, guiding them on the optimal use of the CLM platform, tracking knowledge dissemination, and making necessary adjustments in real-time. The help desk support service is instrumental in troubleshooting contracting process issues, ensuring uninterrupted operations, and maximizing the platform’s utility.
Webinar: Managing Large-Scale Review Efficiently
It started as a routine internal audit, but evolved quickly into a formidable challenge of processing, hosting and reviewing a vast volume of data with a tight timeframe. The successful collaboration between West Technology Group, CloudNine and Integreon, resulted in a remarkably efficient process. The lessons learned underscore the ongoing challenges of data management in the contemporary global business environment. You will learn… How to tackle large scale review with fine-tuned workflows What criteria to look for in having the right people and technology in place to handle a complex review What are secrets to a successful project when dealing with multiple teams How all data, even the hard-to-manage chat apps, social media and text data, to be a part of the audit/investigation, needs consideration Watch the recording today and be prepared for when a large-scale review comes your way.
Cyber Risk & Insurance Innovation Europe
Join Integreon at Cyber Risk & Insurance Innovation Europe! Integreon will be at the Cyber Risk & Insurance Innovation Europe February 8th. While cybersecurity attacks continue to surge, premiums are increasing, capacity is being reduced, and coverage restricted. As the market needs to find a balance between buyers’ demand for affordable cyber cover and insurers protecting themselves from systemic losses, what steps can the industry take to create a sustainable, resilient, and affordable marketing for all? This event will provide key stakeholder insights into the current state of the cyber insurance market, and address major concerns with regard to cybersecurity risk, assessment, and underwriting challenges, and growth opportunities. Connect with Integreon Integreon will be on site all week and would welcome the opportunity to connect. Reach out to our cyber experts ahead of the event to set up a meeting or stop by our table and connect with us in person. To set up a meeting, please reach out to Jonathan Taylor SCHEDULE A MEETING LEARN MORE
Managed Document Review Case Study: Global Financial Services Client
Leveraging technology and expert resources to cost-effectively handle a large document review. Client Global Financial Services Client Challenge The client was party to a major international litigation related to the manipulation of the foreign exchange market. The starting volume for review was around 1.3 million documents with a 6-month deadline for completion. Solution Integreon assembled a team of document review experts that after an initial data analysis provided a recommendation for a right-fit technology-assisted review workflow that would cull the review population to save time and cost. The client accepted the team’s recommendation and moved to a Relativity-based continuous active learning workflow. Through the Integreon QA process, the review team believed that there were documents included in the review set that should have fallen outside of the search parameters. Integreon’s experts investigated and determined that key metadata fields were missing and, therefore, exclusion searches had not worked properly. Working closely with our technology partner, we added approximately three million documents to the search criteria. This resulted in several hundred thousand documents being added to the review set right before the substantial completion deadline. Results By utilizing seed sets and CAL models, the Integreon team was able to meet the deadline, despite the additional documents. The client was able to produce documents on a rolling basis to help meet the aggressive timeline. The recommended technology-assisted review resulted in a 54% reduction in volume for review. Out of a starting volume of 1,361,983 documents, 632,593 documents were reviewed. The Integreon document review team’s recommended workflow enabled the client and its legal team to comfortably and confidently focus on more critical strategic areas of the litigation.