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Legaltech Due Diligence: Evaluating Cloud and AI Software

Stacked3Here is my recent Daily Record column. My past Daily Record articles can be accessed here.


Legaltech Due Diligence: Evaluating Cloud and AI Software

Technology is evolving at a pace never before seen. While it can often feel overwhelming, there’s no better time to embrace change by incorporating emerging tools like cloud-based software and artificial intelligence (AI) into your law firm. Given the rapid pace of change, your best option is to do all you can to avoid falling behind.

Of course, whenever you consider implementing new cloud-based technology, including AI software, into your law firm, it’s essential to thoroughly understand the implications of technology adoption and fully vet all software providers that will handle your firm’s data. Your ethical obligation is to take reasonable steps to ensure that all confidential information will be properly protected and securely maintained.   

One of the first things you can do to ensure your firm’s data security is to use legal technology tools rather than consumer-grade software. Legal technology providers understand the needs and ethical obligations of legal professionals and are thus better equipped to meet your needs. But even when using legal software, you still required to understand how your firm’s data will be handled and protected. 

If you’re not sure where to start, I’ve got you covered. Below you’ll find a partial list of questions to ask cloud and AI companies. The comprehensive list of questions can be accessed online here:

These questions will help you vet legal software providers, including 1) who will have access to it and under what conditions; 2) what steps will be taken to secure the data, 3) what types of data backup procedures are in place, 4) whether the accuracy and reliability of the output are sufficient for your needs, and 5) how you can export your data should you decide to switch providers.

Partial List of Questions to Ask AI Providers 

  • What is your AI’s core technology and architecture?
  • What data does your AI require for training?
  • How do you ensure your AI model’s accuracy?
  • How does your AI handle bias and fairness?
  • How is your AI model updated and improved over time?
  • What is your AI’s interpretability and transparency like?
  • What is your model’s performance in real-time applications?
  • Can your AI model be customized to our specific needs?
  • What kind of support and training do you provide?
  • How do you ensure confidentiality, data security, and privacy?

Partial List of Questions to Ask Cloud Providers

  • How long has the company been around?
  • What type of facility will host your law firm's data?
  • Who else has access to the cloud facility, the servers, and the data?
  • How does the vendor screen its employees?
  • Is the data accessible by the vendor’s employees limited to only those situations where you request assistance?
  • If there are integrations with the company's product, how does the company screen the security processes of the other vendors?
  • If there is a problem with a product that integrates with the vendor's software, which company will be responsible for addressing the issue?
  • Does the contract with the vendor address confidentiality?
  • How often are backups performed?
  • What types of encryption methods are used?

Keeping up with change isn’t always easy, but it’s essential in today’s fast-paced environment. Staying up-to-date and carefully vetting the companies that will provide technology solutions for your firm will lay the groundwork for future success. Your diligent efforts will pay off in the long run by enabling your law firm to thrive by leveraging technology that will level the playing field and allow you to compete in innovative ways never before imagined. 

Nicole Black is a Rochester, New York attorney, author, journalist, and the Head of SME and External Education at MyCase legal practice management software, an AffiniPay company. She is the nationally-recognized author of "Cloud Computing for Lawyers" (2012) and co-authors "Social Media for Lawyers: The Next Frontier" (2010), both published by the American Bar Association. She also co-authors "Criminal Law in New York," a Thomson Reuters treatise. She writes regular columns for Above the Law, ABA Journal, and The Daily Record, has authored hundreds of articles for other publications, and regularly speaks at conferences regarding the intersection of law and emerging technologies. She is an ABA Legal Rebel, and is listed on the Fastcase 50 and ABA LTRC Women in Legal Tech. She can be contacted at [email protected].