There is unique paranoia in the legal marketplace that does not exist in other sectors.
It stems from the fact that conflict rules and direct ownership structures keep the legal industry fragmented. Unlike, say, accountancy, where a few large institutions have essentially taken control of the market, a large number of law firms are credible candidates to win market share.
This is good for proponents of capitalism and competition but problematic for law firm leaders because it means they have to constantly watch each other to stay abreast of developments or risk being left behind.
A perfect example of this is currently taking place with the buzz surrounding ChatGPT and generative AI. When the technology grabbed the attention of the wider public late last year, law firms understandably started to think about how they could take advantage of it. When Allen & Overy unveiled AI platform ‘Harvey’ in February, the need for other firms to show they were doing something themselves intensified. Now it is difficult to talk to any law firm leader without the topic coming up.
The problem is that few law firms know exactly how they will use technology such as language learning models at the moment. AI is going to keep developing for a few years to come so it is difficult for them to predict where it will end up. A study last week concluded that only niche legal AI products will impact the industry, not ChatGPT. No one really knows.
So why all the investment right now? Why not wait a few years until the benefits and the best products become more apparent?
This is where herd mentality comes in...
