AI Use Cases In Law Hypothesis 1 - Successful deployment of (Al-based) law tech is associated with assembly of multidisciplinary teams (MDTs) Organizational Complements Professional Partnership Company Decentralized, consensus- Centralized, managerial based Ownership Partners (lawyers) Outside investors and employees Recruitment, retention and Works well for lawyers Works well for motivation multidisciplinary teams Outside finance Debt only Debt and Equity Decision-making Case Study Evidence Case Study 1: Law Firm A - Deploys Al in due diligence for M&A transactions • Licenses Al platform from vendor: capital costs minimized • A's personnel train the Al models: legal human capital • Non-legal human capital for MDT is largely sourced outside the organization (from the vendor) - Recruitment, retention and motivation of non- lawyers within law firm org structure is problematic • MDT deployment requires coordination between lawyers employed by law firm and technical staff employed by vendor. Case Study 2: Law Company B - Deploys Al and other technologies in providing legal operations support to law firms and corporate clients • Licenses technology platforms from vendors but employs all relevant nonlegal human capital for deployment • Assembles teams to work for clients, all personnel employed by B (lawyers moved from client to B) - Recruitment, retention and motivation of non- lawyers within corporate org structure • B raises outside capital and commits to invest in technology • Employees offered equity in B Case Study 3: Corporate C - Deploys Al and other technologies in providing legal operations support to own inhouse team • Licenses technology platforms from vendors but employs all relevant nonlegal human capital for deployment • - All relevant personnel employed by C Recruitment, retention and motivation of non- lawyers within corporate org structure • C raises outside capital and commits to invest in technology • Employees offered equity in C • But legal is a cost center, so management are not as responsive as for activities that affect revenues directly Hypothesis 2 - Successful deployment of MDTs is associated with use of corporate, rather than partnership, form. Hypotheses - H1: Successful deployment of (Al-based) law tech is associated with assembly of multi-disciplinary teams (MDTs) - H2: Successful deployment of MDTs is associated with use of corporate, rather than partnership, form. Univariate Results Control Variables - Age of respondent (proxied by years since qualification) - Use of non-Al law tech by respondent - Law tech training received by respondent in previous 3 years Interpretation - Results are consistent with H1 and H2 - NB limitations of data do not permit causal interpretation Law Firms Implications For Law Firms - Evidence suggests traditional (partnership) law firms may be at a disadvantage in implementing Al-based law tech - So what? • Clients likely to find it cheaper to do own Al-based law tech analysis or purchase from legal operations company • Law firms likely to cede "auto Mable" work • No need to implement Al-based law tech in a law firm: can be purchased as an input to traditional (bespoke) legal advisory work Case Study 4: Law Firm D - Has undergone an IPO, law firm (D LLP) is now subsidiary of public company (D plc) - Deploys Al and other technologies in providing legal operations support to corporate clients and other law firms • D plc licenses technology platforms from vendors but employs all relevant non-legal human capital for deployment - • Assembles teams to work for clients • D LLP lawyers do advisory work for clients Recruitment, retention and motivation of non-lawyers within corporate org structure • D plc raises outside capital and commits to invest in technology • Employees of D plc offered equity in the company Implications For Law Firms - Evidence suggests legal human capital augments the development and deployment of Al-based law tech, but - • Does not look like traditional "lawyering" and • Happens outside traditional "law firms" Will such professionals be seen as "lawyers" or something else? Where is the boundary of the profession?