What Happens When Robots Join Law Firms

Joshua Lenon Lawyer-in-Residence

Clio

JUDGMENT DAY

The robot takeover has already happened.

Computer Prices 2005+

0.0#

20.0#

40.0#

60.0#

80.0#

100.0#

120.0#

140.0#

160.0#

180.0#

2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#

From#the#Bureau#of#Labor#Sta;s;cs’#Consumer#Price#Index#–#pulled#03/11/2014#

Legal Service Prices 2005+

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2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#

From#the#Bureau#of#Labor#Sta;s;cs’#Producer#Price#Index#J#Legal#Services#–#pulled#03/11/2014#

Compared Prices 2005+

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50.0#

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2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#

Computer#

Legal#

From#the#Bureau#of#Labor#Sta;s;cs##–#pulled#03/11/2014#

It is now cheaper to program a computer

than hire a professional lawyer.

Why does this matter?

Constant Information Growth

•  Number of Treaties on File with the UN: 550 •  Number of Pages in the U.S.C.A: 200,000 •  Number of Federal Court Civil Cases Filed

Last Year: 271,950 •  Number of Federal Court Civil Cases

Terminated: 254,619.

Constant Information Change

J20%#

J15%#

J10%#

J5%#

0%#

5%#

10%#

15%#

20%#

25%#

60000#

65000#

70000#

75000#

80000#

85000#

2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012#

FR#Pages# %#Increase#

Source:#Federal#Register#Pages#Published#1936J2012#

Rapid changes in law affect every part

of our lives.

It has become impossible for legal professionals to know

every relevant aspect of the law

It is possible for computers to know every

relevant aspect of the law

THE FIRST SHOT

Legal is not the only knowledge sector

growing.

Medical Information is Exploding

•  Journal articles published last year: 1,113,989

•  Pharmaceutical trials undergone: 162,866 •  Malpractice cases payouts 2012: 12,142

IBM Watson

Mines: •  patient data •  treatment

guidelines •  Eletronic

medical data •  Doctor’s notes •  Clinical

studies

Medical’s Solution

Leveraging Increasing Powerful, Increasing Cheap

Computer Processing Power

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2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#

Technology allows medicine to predict and react from an

informed position.

ROBOT INVASION

Technology should allow lawyers to predict and react from an informed position.

Personal Processing Power Cannot Compete on Price or Power

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2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014#

CPU#

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From#the#Bureau#of#Labor#Sta;s;cs##–#pulled#03/11/2014#

Technology to React

•  Many services already issue alerts to changes in law, like Fastcase’s Bad Law Bot

Fewer robotic services exist that predict legal outcomes from the basis of expansive

information.

Predictive robotic services require construction by

specialized professionals

Robot Invasion •  Expert Trusted

Advisor •  Enhanced

Practitioner •  Legal

Knowledge Engineer

•  Legal Process Analyst

•  Legal Risk Manager

Some predictive legal robots are already emerging.

Predict Rather Than React

Source:#Neota#Logic#

Neota Logic’s Family & Medical Leave Robot

•  Rules: – Family Medical Leave Act – State Law

•  Factual Variations: 15m •  Questions Asked: 16-25 •  Time: 2-6 minutes

User: Corporate Managers

Source:#Neota#Logic#

Neota Logic’s EU Collateral Directive Robot

•  Rules: – 21 jurisdictions – 93 types of financial

obligations – 10 forms of agreement – 4 types of collateral – 11 types of counterparties – 16 types of financial

institutions •  Factual Variations: 13m •  Questions Asked: 8-12 •  Time: 1 minute

User: Lawyers

Source:#Neota#Logic#

Using Robots Saves Firms Money

Embracing technology has reduced the costs of producing bound volumes by 60% and time to dispatch by 80%.

Source:#Applying#Con;nuous#Improvement#to#highJend#legal#services,#Clifford#Chance#2014#

POST-INVASION

It is cheaper to program a computer than to hire a lawyer

Because of this, many changes are happening

in the legal sphere

Reduced Territory

Since 2010, more than 20 law firms in Washington, DC have reduced their office space. •  Contracted 270,000 Square Feet •  Backend operations moved out of town

Source:#Washington#Post,#March#11,#2014#

Reduced Population

Applications to law school have dropped 20% since 2008 Of those students completing law school in 2012, only 56% had long-term, full-time jobs that required Bar passage – i.e. lawyers Law firms are shedding non-professional staff

Source:#American#Bar#Assoc.#Sec;on#of#Legal#Educa;on#2012#Law#Graduate#Employment#Data#

Reduced Trade

•  Business steering work away from law firms –  In-house legal departments hiring technology

vendors over law firms for discovery

•  Consumers unable to afford traditional legal services – Average person must work 7-10 hours to pay for

1 hour of lawyer’s time

Source:#Gartner#Legal#IT#2020#Scenario###

CONCLUSION

Robots will not replace Lawyers

Robots WILL do the work of many traditional lawyer duties, like e-discovery & compliance, taking some business and driving efficiencies Law firms that embrace robot colleagues will have a competitive advantage Lawyers that can build robots will be in demand

Thank You

Joshua Lenon joshua@goclio.com @JoshuaLenon Linkedin.com/in/joshualenon

Image#by#Richard#Stevens,#creator#of#Diesel#Swee;es,#used#without#permission.##