Lexpert Magazine

September/October 2018

Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.

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48 LEXPERT MAGAZINE | SEPTEMBER / OCTOBER 2018 | ARTIFICIAL INTELLIGENCE | views also revealed that: Very few GCs were testing or implement- ing AI systems; Many GCs pursued new technology cau- tiously absent demonstrable and tangible benefit to their departments' operation and efficiency; e use of technology was uneven across organizations, varying between jurisdic- tions and departments; Because law departments don't generate revenue, new IT investment could be hard to justify; And, GCs are divided as to the long-term practical benefits of AI. e overall impression is that many GCs are sitting back and waiting for their external counsel to take the initiative. In- deed, interviewers found that GCs would like "a more proactive stance from law firms in sharing the potential benefits of AI — through testing, implementation and cost saving." According to Mark Rigotti, CEO of in- ternational law firm Herbert Smith Free- hills, writing in a firm publication entitled Artificial Intelligence: e client perspective, clients have "strong and varied views on why their private practice firms need to respond to new and potentially disruptive technologies." Not only do clients believe that AI will enhance efficiency, they be- lieve that it will encourage "an enhanced engagement" with their law firms: "Clients want their law firms to move beyond tradi- tional transactional lead delivery to a new, more collaborative relationship model." e upshot is that even as the clients $150,000 at some form of soware and treating it like it's a legal tech solution just so they can say they're innovative," he says. "at approach borders on disingenuous and serves to point out that the biggest challenge facing legal tech is that it is being used as a band-aid instead of improving the nuts and bolts of law firm processes." Sukesh Kamra, a lawyer and the Toron- to-based National Director, Knowledge Management, at Norton Rose Fulbright Canada LLP, agrees that progress is un- even. "What we're seeing is a true monu- mental disruption, where a culture based on precedent and conservative attitudes has had to open up and embrace change on many fronts, including legal tech, pricing, staffing and compensation," he says. "It's a complete revolution for which some firms are more ready than others." Norton Rose Fulbright appears to be in the ready group. e firm recently launched "Parker," an interactive chat- bot that will guide clients in determin- ing their exposure and obligations under mandatary Canadian data breach laws and new regulations that will come into effect on Nov. 1 under the Personal In- formation Protection and Electronic Docu- ments Act (PIPEDA). "Parker is a tool built on the IBM Watson platform that helps organizations understand whether they are subject to certain privacy laws," says Ryan Berger, the Vancouver-based based co-chair of Norton Rose Fullbright's data and privacy group. e Canadian release follows on the success of Parker in Australia, where the program originated, and its subsequent modification to answer questions about the new European data protection law, the General Data Protection Regulation (GDPR), which came into effect on May 25, 2018. Parker's GDPR version, devel- oped by Norton Rose's Australian arm, is primarily aimed at multinational business- es that need to determine whether and how the new law applies to them. If the Australian and GDPR versions are any indication, Parker will be an unquali- fied success in Canada. e first 24 hours of Parker Australia's December 2017 launch drew more than 1,000 conversations to the chatbot, with the number rising to 5,976 over the next six months. For its part, GDPR Parker rang up 3,826 conversations drive the bus from the back seat, they ex- pect law firms to steer the course and keep the tank full. Whether or not clients' laid- back tendencies will impair the voyage re- mains to be seen. What seems indisputable, however, is that there is no sense sending an e-mail to someone without a computer, or a spreadsheet to someone who can't navigate Excel. All the more so in the case of AI, whose "machine learning" capabilities are oen rooted in continuing input from as many stakeholders as possible. Still, the fact remains that clients drive the bus. To their credit, some firms have responded to clients' demands for innova- tion by exploring the possibilities of tech- nology aggressively. Yet Chris Bentley, Managing Director of the Legal Innovation Zone and Law Practice program at Ryerson University in Toronto, is concerned about the pace of adoption. "ere's certainly more and more discussion, feelers and entreaties re- lated to legal tech, and there are some real leaders in the profession," he says. "But while there are islands of progress within the established law firm legal community and corporate legal departments, on the whole lawyers aren't proceeding at the pace or urgency that is required." Matthew Peters, the Vancouver-based National Leader, Markets at McCarthy Tétrault LLP, says that the pressure on law firms to innovate may be creating the im- pression that individual firms are further along the tech curve than they assert they are. "ere are people who are throwing – MATTHEW PETERS MCCARTHY TÉTRAULT LLP "There are people who are throwing $150,000 at some form of software and treating it like it's a legal tech solution just so they can say they're innovative. That approach borders on disingenuous…"

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