Sui Generis--a New York law blog

Legaltech Due Diligence: Evaluating Cloud and AI Software

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

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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: https://www.lawtechtalk.com/questions-to-ask-cloud-providers.html.

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].

Surf Smarter: 10 Extensions to Upgrade Your Web Browser

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

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Surf Smarter: 10 Extensions to Upgrade Your Web Browser

Like it or not, you probably spend several hours each day online. Nowadays, the internet serves as our lifeline, offering immediate access to whatever we need, whenever we need it. Whether on your smartphone, tablet, laptop, or desktop, the online world offers a window into the world of limitless information.

We've come to rely on—and often take for granted—the tool that grants us instant access to cyberspace: the web browser. While not necessarily an exciting piece of technology, it’s nevertheless a reliable workhorse that we use daily. Browsers are highly functional on their own, but adding browser extensions can make your online experience both more productive and secure.

Browser extensions are typically available regardless of the tool you’re using, and many are accessible across multiple platforms. To add them to your browser you need to locate the extension “store,” usually located within your browser’s settings. The store includes categorized add-ons, and you can also search for specific ones. 

I take advantage of a host of different extensions that enhance and improve my online experience and regularly add new ones as I discover them. Below you’ll find my top ten most-used extensions, along with an explanation of how each one adds to my daily workflow.

AdBlock: This browser extension serves as a digital shield, filtering out intrusive advertisements from web pages and enhancing your experience by reducing page load times and conserving bandwidth.

ChatGPT for Google: This add-on integrates GPT-based conversational AI into Google search, providing you with enhanced search capabilities, contextual assistance, and even real-time language translation, making Google's ecosystem more interactive and intuitive.

Consent-o-Matic: This extension automates the often cumbersome process of managing GDPR cookie consent forms across various websites, and streamlines your navigation by automatically selecting or declining cookies based on your preferences.

DuckDuckGo: More than just a search engine, this extension offers a comprehensive privacy solution by blocking third-party trackers, encrypting connections, and providing a private search functionality that doesn't store your data.

Grammarly: Grammarly is a comprehensive writing assistant that scrutinizes your text for grammatical errors, offers stylistic improvements, and even employs algorithms to detect the tone and suggest revisions to enhance the readability of your writing.

PayPal Honey: This shopping assistant extension goes beyond finding and applying coupon codes at checkout; it's integrated with PayPal to offer a seamless transaction experience, and even provides price tracking and alerts.

PrintFriendly: This extension transforms cluttered web pages into clean, print-ready versions by stripping away ads, navigation bars, and other non-essential elements, making it easier to print the page or save it as a PDF.

Search the current site: This browser extension streamlines your web navigation by enabling focused, site-specific search queries directly from your browser's toolbar, eliminating the need to navigate through a website's own (often cumbersome) search function or manually search a page by entering site:URL into a search engine.

Trim: This extension enriches your streaming experience by embedding IMDb, Rotten Tomatoes, and Metacritic ratings directly into Netflix, Amazon Prime Video, and other streaming services, enabling you to make informed choices about what to watch next.

WOT (Web of Trust): This extension serves as a real-time sentinel by evaluating the reputation of websites you visit and warning you about potential security risks, scams, or phishing attempts, based on community reviews and machine learning algorithms.

Install any or all of these extensions and reap the rewards of a more streamlined, ad-free, and data-rich browsing experience. Gone are the days of unsafe websites, paying full price, or blindly choosing movies. Instead, you’ll be armed with grammatically correct documents, instantaneous ChatGPT search results, and the best online deals in town. What more could a sophisticated internet traveler ask for?

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].

Sharing space, not secrets: Office sharing insights from ABA Formal Opinion 507

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

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Sharing space, not secrets: Office sharing insights from ABA Formal Opinion 507

The landscape of our lives looks very different now than it did before the pandemic struck. Nowhere is this more apparent than in the workplace. Remote work is more common than ever and increased technology usage has enabled more flexible and creative work arrangements. Because five-day in-office work weeks are less common, office-sharing arrangements have become more palatable for lawyers. Less office space is required due to hybrid work schedules, thus allowing more people to work from one office and divide rental costs while also sharing resources. 

However, with more office-sharing by attorneys comes the need to carefully balance the convenience with the potential risks this type of arrangement can pose. Fortunately, there is guidance available in the form of a recently released ethics opinion, ABA Formal Opinion 507.

Handed down in July, this opinion addresses the ethical issues that arise when lawyers participate in office-sharing arrangements. The Standing Committee on Ethics and Responsibility concluded that it is generally permissible for lawyers to share offices with others, but when doing so there are a number of ethical issues to keep top of mind.

First, the Committee cautioned that it’s essential to take steps to protect client confidentiality. Lawyers must ensure that the physical arrangement of the shared office space does not expose client information to other office-sharing lawyers or their staff. Safeguards that should be considered include maintaining separate waiting areas, installing privacy screens, and using technology to provide secure storage for client files 

The Committee discussed the importance of using separate telephone lines and computer systems, along with providing staff training to protect client information: "(L)awyers can also restrict access to client-related information by securing physical client files in locked cabinets or offices and using separate telephone lines and computer systems. Lawyers, however, may overcome confidentiality concerns with shared telephone and computer systems with appropriate security measures, staff training, and client disclosures." 

While keeping client information secure is paramount, it's not the only ethical obligation lawyers need to consider. Clear communication was also emphasized. According to the Committee, lawyers have an ethical obligation to clearly communicate the nature of their relationship to the public and clients to avoid misleading impressions. There are a number of ways that lawyers sharing office space can ensure compliance, including using separate business cards, letterheads, and directory listings.

The Committee also opined on the importance of taking steps to avoid conflicts of interest, explaining that attorneys “should pay particular attention to (1) avoiding the imputation of conflicts of interest, (2) taking on potential new matters that are adverse to clients represented by other office sharing lawyers, and (3) consulting with fellow office sharing lawyers.” 

Another area to approach with caution is when sharing staff with other lawyers. 

If lawyers decide to share support staff, they must instruct all employees regarding their confidentiality obligations and should take steps to supervise them appropriately. 

Finally, the Committee addressed issues that arise when lawyers who share office space consult with one another about their cases. According to the Commitee, lawyers should avoid disclosing client-identifying or privileged information during informal consultations, and discussing issues through hypotheticals is recommended. Notably, these consultations can sometimes lead to unexpected conflicts of interest that could limit a lawyer's ability to represent current or future clients. Therefore, a standard conflict check should be conducted before any informal consultation discussion in order to mitigate this risk.

The pandemic and technological changes have upended traditional legal practices. As a result, we now have an unprecedented array of options for how and where to conduct our work. But as this opinion reminds us, with this newfound flexibility comes a heightened ethical burden. In a landscape that's shifting almost as quickly as technology itself, this opinion provides much-needed guidance for lawyers seeking to take advantage of the many benefits offered by hybrid work arrangements like office-sharing.

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].

Never fear, AI guidance for lawyers is near

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

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Never Fear, AI Guidance for Lawyers is Near

You may have noticed that generative AI tools like ChatGPT are making waves lately. However, in their current iteration, when these tools are used by legal professionals, it’s not necessarily smooth sailing.

If you’re worried about ethics and security, rest assured you're not alone. The promised efficiencies of these tools are tempered by genuine concerns about the accuracy of results, confidentiality, and ethical compliance. Since this technology is both new and rapidly changing, implementation in law firms is a challenging task, and innovative lawyers are forced to navigate the uncharted waters of generative AI in the absence of clear guidance.

Fortunately, help is on the way. In a number of different jurisdictions, plans have been announced that are designed to address many of the thorny issues presented by generative AI, either through the issuance of ethics opinions or the formation of committees dedicated to tackling these challenges.

For example, in July the New York State Bar Association announced that it was forming a task force to address emerging issues related to artificial intelligence. The Bar explained that the task force would “address the benefits and potential dangers surrounding artificial intelligence and make regulatory recommendations for this powerful and fast-developing technology.” The task force plans to “develop policies for bar association adoption and suggest legislation to govern effective and responsible AI use.”

Similarly, a few weeks later, the Texas State Bar also announced the formation of a workgroup that would “examine the ethical pitfalls and practical uses of AI and report back within the year.” The ultimate goal is for the workgroup to provide recommendations on the policies related to AI that should be implemented by the state bar.

Finally, in May, the California Bar created a committee tasked with examining the impact of AI on the profession. The goal is to draft an advisory ethics opinion for release in November that would address the risks and benefits of using AI in legal practice and provide guidance on how to do so while complying with ethical obligations.

In the meantime, because generative AI technology is evolving so fast, you may as well learn as much as you can about it. That way, when the time comes, you’ll be able to make an informed decision about whether and how to use it in your law firm.

The guidance offered by the various state bars will help, but you’ll need to have a foundational knowledge of AI technology in order to make an educated choice that complies with the findings and determinations of the appropriate committee.

This course of action not only makes sense, it also ensures compliance with the duty of technology competence.

To get started, there are three sites with sections devoted to AI that will enable you to easily track the latest generative AI news: Above the Law, Legaltech News, and ABA Journal.

And if you’re really interested in a deep dive into ChatGPT and best practices for using this tool in your law practice, there’s a course available that is offered by New Orleans attorney and legal technology consultant, Ernie Evenson. It’s a free course called “Using ChatGPT in Modern Practice."

So whether you’re a legal tech geek or a curmudgeon, never fear: the technological and ethical assistance that the legal community has been seeking will arrive soon. While you’re waiting, embracing these changes and preparing for the new regulatory landscape is a great way to chart an innovative course while continuing to serve your clients effectively. The intersection of law and AI is a journey, and with the right roadmap, it’s one that promises to be both rewarding and impactful.

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].

Generative AI in Law: Resistance is Futile

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

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Generative AI in Law: Resistance is Futile

I started writing this column on legal technology in 2007, and over the years I’ve noticed a pattern. Time and time again, whenever a new technology comes along that impacts the practice of law, members of our profession tend to have a knee-jerk reaction to it. There’s talk of “bans,” declarations of significant consequences due to related ethical violations, and dire warnings that the sky is about to plummet to the earth.

First, it was blogging, followed by social media, mobile phones, tablets, cloud computing, and artificial intelligence. As each new technology emerged on the scene, there was collective outrage, disdain, and promises of imminent regulatory peril. Purported curmudgeonly experts - especially those whose job functions were imperiled by each new wave of technology - prophesied looming and significant threats to law licenses, client confidentiality, and the reputation of the profession as a whole. Each new technology was viewed as a threat to the very foundation of the practice of law. 

Of course, this pattern started long before I entered the world of legal technology. Lawyers have always been suspicious of technology. PCs, faxes, the internet, online legal research, and email were met with wariness, skepticism, and sometimes even outrage. 

Our profession is far more comfortable with precedent than radical evolution, but as we know, every time a new technology is introduced, it beings with it the promise of change. So of course it’s predictable that the now-familiar pattern of setting up roadblocks to adoption will occur in due haste whenever a cutting-edge technology intrudes on our change-resistant legal profession.

Examples of technology adoption hurdles often put in place by ethics committees and others when new technologies are adopted by lawyers include outright bans, requiring signed client consent or published disclaimers, and imposing obligations to notify or obtain permission from judges when using it. Eventually, however, as specific types of technology become more commonplace and familiar, these requirements are eased over time and eventually eradicated entirely. 

With the recent explosion of newly released generative artificial intelligence (AI) tools like ChatGPT and Google Bard and their rapid adoption by legal professionals, we’re seeing the same pattern of reticence emerge across the legal landscape, from the hallowed halls of law schools to our esteemed courtrooms.

The use of generative AI in litigation has been prohibited by some judges. In one instance, Judge Brantley D. Starr of the US District Court for the Northern District of Texas issued a standing order in April requiring lawyers to certify that generative AI tools were not used to assist with drafting any papers filed with the court. Similarly, U.S. Court of International Trade Judge Stephen Vaden likewise issued an order in June that required lawyers appearing in his court to certify that “any submission(s)...that contain…text drafted with the assistance of a generative artificial intelligence program…be accompanied by: (1) A disclosure notice that identifies the program used and the specific portions of text that have been so drafted; (2) A certification that the use of such program has not resulted in the disclosure of any confidential or business proprietary information to any unauthorized party…”

Law schools have also jumped onto the “ban ChatGPT” bandwagon. In April, Berkeley Law School was one of the first to impose restrictions on the use of generative AI by its students. The school released a policy that prohibited students from using it “on exams or to compose any submitted assignments,” and only permitted them to use it “to conduct research or correct grammar.”

More recently, generative AI use was targeted in law school applications. In mid-July, the University of Michigan law school announced that prospective law students were banned from using generative AI tools to assist with the preparation of personal statements.

Fortunately, there are some forward-thinking members of the legal profession who are accepting the inevitability of rapid technological change and are embracing rather than fighting the adoption of generative AI into our profession. In January, Dean Andrew Perlman of Suffolk University Law School suggested that law school students should be taught how to use generative AI as one of the many useful tools in their legal research and writing arsenal. 

In other words, he believes that law students (and lawyers) should learn about generative AI and make educated decisions about how to responsibly and ethically use it to streamline legal work and increase efficiencies. If you ask me, that sounds an awful lot like that pesky duty of technology competence, which is a key ethical obligation for lawyers practicing law in the digital age. Funny how that works, isn’t it?

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].

 

Ethical implications of charging credit card fees: Insights from the NYSBA

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

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The Ethical Implications of Charging Credit Card Fees: Insights from the NYSBA

As the legal profession adapts to the digital age, the types of payment methods accepted from clients have likewise evolved. Lawyers in 2023 accept many forms of payment from clients, including credit cards. In fact, accepting credit card payments for legal services has become increasingly commonplace.

However, that wasn’t always the case. When lawyers first proposed the idea of accepting credit cards for payment of legal fees, there was significant resistance. The concern was that legal clients who were facing the complexities of their cases would be further burdened by the additional costs associated with credit cards. This resistance was grounded in our profession's commitment to maintaining a fair and equitable relationship between lawyers and clients.

Over time, however, attitudes changed. Credit cards were viewed with less skepticism, and as a result, many lawyers now regularly accept credit cards from clients. By doing so, they increase access to justice by making it possible for potential clients to afford lawyers when they might otherwise have been unable to do so. In other words, when lawyers accept credit cards, they offer their clients much-needed flexibility and convenience.

However, with this ease of payment comes new ethical considerations. Credit cards are a unique form of payment and as is always the case when it comes to any type of legal fee arrangement, transparency and reasonableness are always essential, as recently explained by the New York State Bar Association in Ethics Opinion 1258 (Online: https://nysba.org/ethics-opinion-1258-credit-card-fees-as-an-expense/). 

At issue in this opinion was whether it is ethical for lawyers to pass credit card processing fees onto clients as an expense, and under what circumstances. 

In reaching its determination, the Committee on Professional Ethics first confirmed that lawyers in New York can ethically accept credit cards from clients to pay for legal services as long as the following conditions are met: 1) The legal fee charged is reasonable; 2) The attorney maintains the client's information in strict confidence; 3) The lawyer doesn't let the credit card company influence their independent professional judgment when representing the client; 4) The lawyer informs the client prior to processing the credit card charges, giving the client an opportunity to question any billing discrepancies; and 5) In case of any disagreements regarding the lawyer's fee, the lawyer seeks to obtain a peaceful and quick resolution, and if relevant, follows the fee dispute resolution program set forth in 22 N.Y.C.R.R. Part 137.

Next, the Committee turned to the issue of charging clients the cost of the merchant processing fee. According to the Committee, Rule 1.5(a) of the New York Rules of Professional Conduct, prohibits attorneys from imposing "an excessive fee or expense" on a client. The rule outlines a series of factors, although not exhaustive, to help determine if a fee or expense is too high. The Committee explained that when a lawyer wants to pass a merchant processing fee to a client who uses a credit card for payment of legal services, it is considered an "expense" under Rule 1.5(a), which mandates that an attorney provide written notification to the client about the "fees and expenses" for which they will be accountable.

The Committee concluded that because a merchant fee from a credit card transaction is an “expense,” New York lawyers are permitted to transfer the merchant processing fee to clients who use credit cards to pay for legal services, as long as both the lawyer's fee and the processing fee are reasonable, and the lawyer previously notified the client in writing and received their approval to proceed.

Protecting the interests of legal consumers is essential regardless of the payment method accepted. This opinion, and others like it, play a pivotal role in safeguarding the interests of legal clients. They ensure that regardless of the payment method, the ethical standards of the profession prioritize the rights and interests of clients, reinforcing the fundamental principles of fairness and integrity in legal practice. 

Of course, whether it’s good business to pass processing fees onto clients is a different issue. Just as you may avoid gas stations that charge more for gas, so too may a legal client avoid a law firm that abides by this practice. 

Another option would be that once your firm begins to accept credit cards, consider increasing hourly rates across the board to account for expected credit card processing charges. Either way, your firm gets paid the same amount, but the process is simplified and your client likely will feel less resentment. Ultimately, the choice is yours, and you should do what works best for your firm and its clients.

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].

Driving law firm efficiency: Proven productivity tips

Here is a recent Daily Record column. My past Daily Record articles can be accessed here.

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Driving Law Firm Efficiency: Proven Productivity Tips

In today’s ever-evolving world, technology has become a key differentiator for lawyers, driving productivity and profitability in a highly competitive market. According to a recent report, the correlation between technology adoption by law firms and increased efficiency is undeniable. There are proven productivity strategies that can streamline legal services and deliver measurable improvements in efficiency and profitability. Firms that take advantage of these tools can dramatically improve work processes and enhance the delivery of legal services.

In the MyCase + LawPay 2023 Benchmark Report Part 1, anonymized data was collected from law firm software users, with a focus on determining how work gets done in law firms. The data was analyzed to identify productivity gains and key performance indicators (KPIs) that would be useful as benchmarks for lawyers seeking to run their firms more effectively.

One notable finding from the report was that lawyers who used passive time-tracking tools captured significantly more time than lawyers who didn’t. If you’re unfamiliar with the concept, this timekeeping tool works in the background, passively tracking all activities done on a computer or in a software program.

The data collected and analyzed showed that if you assume a $350 per hour billing rate, lawyers who used a passive time tracking tool billed an extra 64 hours amounting to additional billable time worth $202,882,750 in 2022. This means that on average, lawyers who used this feature invoiced an additional $22,425 last year!

The report also included data on the realization rates of solo lawyers. Utilization rates measure the amount of time that lawyers spend on billable work or client-related activities compared to the total amount of available working hours. This performance indicator provides insights into how effectively lawyers are using their time and resources to generate revenue for the firm or organization.

One of the calculated KPIs was for solo law firm customers who had at least 5,000 time entries in 2022. The results showed that on average those customers billed 1,539 hours in 2022. The utilization rate for those customers is 76%, and those attorneys billed, on average, 6.1 hours per workday. This is a great data point to use to determine how your firm stacks up and whether there are inefficiencies in your workflows that are reducing productivity.

Another KPI covered in the report was the work-in-progress (WIP) rate, which compares the ratio of the total number of active matters to the total number of matters closed over a certain period of time. Bankruptcy matters had the highest WIP (10.9) in 2022, followed by immigration (10.3), personal injury (10.1), trusts and estates (8.2), and criminal law (8.1). Overall, eleven practice areas were analyzed, and you’ll find WIP rates for each one in the report.

The report also included data on hours billed per case by practice area in 2022, along with data on the number of online court date reminders sent in 2022 for a variety of different practice areas. In other words, it includes various types of productivity data that can help you determine your firm's efficiency strengths and weaknesses. From this information, you can make educated decisions about choosing new tools for your firm to systemize workflows, increase overall efficiency, and significantly improve profitability.

Nicole Black is a Rochester, New York attorney, author, journalist, and the head of SME and External Education at MyCase  law practice management software, an AffiniPay company. She is the author of the ABA book Cloud Computing for Lawyers, co-authors the ABA book Social Media for Lawyers: the Next Frontier, and co-authors Criminal Law in New York, a Thomson Reuters treatise. She writes legal technology columns for Above the Law and ABA Journal and speaks regularly at conferences regarding the intersection of law and technology. You can follow her on Twitter at @nikiblack or email her at [email protected].

LegalTech's AI Race: A Sign of What’s to Come

Here is a recent Daily Record column. My past Daily Record articles can be accessed here.

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LegalTech's AI Race: A Sign of What’s to Come

Last week, a generative AI acquisition in the legal technology space made news headlines.
Thomson Reuters announced that it had entered into an agreement to acquire Casetext, a legal research software company, for the notable price of $650 million.

For the past decade, Casetext has provided a legal research platform grounded in AI technology. The company consistently developed innovative features that utilized AI technology to streamline legal research and brief creation, most recently releasing CoCounsel, a generative AI legal assistant tool powered by GPT-4, which is the same technology that powers ChatGPT Plus.

In mid-2022, Casetext was one of the first companies to begin working with Open AI, the company behind GPT-4. That partnership allowed Casetext to access GPT-4 months before its public release, and use it to develop CoCounsel, a cutting-edge legal assistant chatbot that included a number of built-in functionalities such as review and summarize documents, deposition preparation, database search, legal research memos, and contract analysis.

This Casetext acquisition is significant and is a sign of the tremendous impact that generative AI will have on the practice of law. According to Steve Hasker, president and CEO of Thomson Reuters, this acquisition will enable Thomson Reuters to quickly roll out generative AI capabilities to its customers and will change the workflows of legal professionals: “The acquisition of Casetext…will accelerate and expand our market potential for these offerings - revolutionizing the way professionals work, and the work they do.”

This acquisition comes on the tail of an announcement last month from another legal tech giant, LexisNexis, which rolled out the beta version of Lexis+ AI, the company’s generative AI platform that includes conversational search, document summarization, and intelligent legal drafting capabilities.

In response to Thomson Reuter’s acquisition announcement, LexisNexis VP of Corporate Development Bill Mills said, “We are leading the market in applying artificial intelligence to the legal industry…(and) have built the AI capabilities needed internally, which is allowing us to move at speed, without being slowed down by an acquisition process and subsequent integration. We are now rapidly introducing generative AI solutions across our product suite, helping customers to deliver better work product, faster than ever before, and to realize cost savings using secure tools they can trust.”

In other words, the gauntlet has been thrown and the legal generative AI race is on! However, the race to the finish line will undoubtedly be fraught with uncertainties and hurdles. The stakes are high, as are the benefits and risks.

One of the greatest challenges is the hallucination problem that occurs when generative AI tools provide categorically false information without batting a metaphorical eye. This issue has not yet been solved, and until an answer is discovered, the utility of generative AI in the legal context is limited to tasks that involve administrative and creative activities as opposed to more analytical and strategic functions.

Despite this temporary drawback, this technology has incredible potential and is improving at an exponential rate. In this rapidly evolving landscape, the true winners of the race will be the lawyers who keep up with the pace of change and take steps to learn about and successfully leverage AI's benefits while taking advantage of the products released by legal tech companies that effectively mitigate its ethical and practical risks.

The Casetext acquisition, along with LexisNexis’ focused efforts to develop and quickly release its own generative AI platform, are strong indicators that this technology is here to stay and will re-shape law firms and the practice of law in the months and years to come, quite possibly more than any other technology that preceded it.

At this point, there’s no turning back. So buckle up, level up, and keep your eyes on the road ahead. While the path ahead may be uncertain, and you’ll encounter bumps along the way, it’s full speed ahead. All aboard the generative AI rocket ship: let’s see where it takes us!

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].

 

 

Nicole Black is a Rochester, New York attorney, author, journalist, and the head of SME and External Education at MyCase  law practice management software, an AffiniPay company. She is the author of the ABA book Cloud Computing for Lawyers, co-authors the ABA book Social Media for Lawyers: the Next Frontier, and co-authors Criminal Law in New York, a Thomson Reuters treatise. She writes legal technology columns for Above the Law and ABA Journal and speaks regularly at conferences regarding the intersection of law and technology. You can follow her on Twitter at @nikiblack or email her at [email protected].

Unlocking the Potential of ChatGPT Plugins in Your Law Practice

Here is a recent Daily Record column. My past Daily Record articles can be accessed here.

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Unlocking the Potential of ChatGPT Plugins in Your Law Practice

The legal landscape is constantly evolving, and the advent of AI technologies has significantly accelerated the rate of change. One notable technology that has been making waves lately is ChatGPT, an advanced AI chatbot developed by OpenAI. 

As I discuss in this article, while this cutting-edge tool has the potential to significantly impact how legal work gets done, it must be used with care. Below you’ll learn what ChatGPT is, its benefits and risks, and the basics of ChatGPT plugins. I’ll also highlight the top 10 ChatGPT plugins that can be particularly beneficial for legal professionals.

What is ChatGPT and Why Does It Matter for Lawyers?

ChatGPT is a generative AI conversational chatbot that understands natural language and generates responses to queries based on context awareness. It is designed to streamline communication, research, and information processing. Because of these features, it can be a valuable tool for lawyers and has the potential to dramatically impact the practice of law, saving time and money. 

However, despite the many benefits generative AI offers legal professionals, there are also drawbacks to be aware of. For starters, its database is limited to a dataset containing information through 2021. As a result, responses are sometimes based on outdated information.

Additionally, this technology is not a stand-in for legal expertise. It does not replace legal knowledge or negate the ethical requirement of basic competence. A careful review of all work produced using generative AI tools will always be required.

Understanding Plugins and how they differ from Browser Extensions

ChatGPT is a powerful tool when used as a standalone chatbot, but its functionality can be enhanced using browser extensions, which I wrote about in April, or plugins, which I cover in this article.

Both browser extensions and plugins add functionality to a software application, but they differ in their scope and application. A browser extension is a small software module that customizes a web browser. A plugin is a software component that adds a specific feature to an existing software application, enhancing its capabilities. 

Recently, ChatGPT released plugins, which are available only to ChatGPT Plus subscribers. Many of the plugins solve the date limitation issue and can be used in conjunction with a ChatGPT conversation to provide further insight, context, and current information. Plugins are available in many different categories including travel, shopping, search, and data summarization and analysis. 

Top 10 ChatGPT Plugins for Lawyers

I’ve had access to plugins for a few weeks now and have experimented with many different types. After scouring through the ChatGPT plugins store, I’ve identified the top 10 plugins that I believe will be particularly useful for legal professionals:

1. Prompt Perfect: This plugin helps users draft “perfect prompts” for ChatGPT making it easier to obtain specific and informative answers from the AI chatbot.
2. Wolfram: This plugin provides access to advanced computations, math, and real-time data, making it useful for lawyers dealing with complex cases that require data analysis.
3. Zapier: This plugin creates a bridge across software tools and allows users to interact with over 5,000 different work apps, including Gmail, MS Outlook, and Slack, streamlining workflows and increasing productivity.
4. Link Reader: This plugin can analyze and process content from all kinds of links, including webpages, PDFs, images, and more, making it easier for lawyers to access and understand current information from a variety of sources.
5. Block Atlas: This tool is great for litigators and other types of practitioners and enables you to easily search and analyze US census data.
6. AskYourPDF: This AI-based chat system allows users to interact with PDF documents efficiently, allowing lawyers to extract content from PDF files quickly and generate summaries, analyses, and more.
7. FiscalNote: This plugin provides real-time datasets of legal, political, and regulatory data and information. It offers a comprehensive platform that tracks legislation, regulations, and policy issues across various levels of government.
8. KeyMate.AI Search: With this plugin, ChatGPT can be used to search the internet for the latest information, addressing the problem of outdated data.
9. Web Pilot: Using this plugin, ChatGPT can access and interact with web pages based on one or more URLs and generates summaries, overviews, translations, and other information from web page content.
10. World News: This plugin provides the latest news around the world, keeping lawyers updated on current events that may impact their practice.

Use ChatGPT Plugins Responsibly

To fully harness the potential of ChatGPT and its plugins, it’s important to prioritize ethical considerations when using these AI tools. First and foremost, refrain from sharing confidential client data unless you are confident that your queries will be protected and will remain private. Also, keep date and accuracy limitations in mind, and remember that even when GPT-powered tools are incorporated into legal-specific software, thus reducing the number of hallucinations, the potential for error nevertheless remains. Until this technology improves significantly, you will have to carefully review all output for errors. 

No matter how you look at it, ChatGPT and its plugins offer a wealth of opportunities for lawyers, allowing them to streamline their work processes, enhance productivity, and stay updated on current events. Through the incorporation of these innovative tools into their daily routine, legal professionals can effectively harness the power of AI technology to the benefit of their practice and their clients by carefully balancing the spirit of innovation and the obligations of professional responsibility. 

Nicole Black is a Rochester, New York attorney, author, journalist, and the head of SME and External Education at MyCase  law practice management software, an AffiniPay company. She is the author of the ABA book Cloud Computing for Lawyers, co-authors the ABA book Social Media for Lawyers: the Next Frontier, and co-authors Criminal Law in New York, a Thomson Reuters treatise. She writes legal technology columns for Above the Law and ABA Journal and speaks regularly at conferences regarding the intersection of law and technology. You can follow her on Twitter at @nikiblack or email her at [email protected].

Embracing the Future: The Latest Legal AI Release Signifies a Groundbreaking Shift

Here is a recent Daily Record column. My past Daily Record articles can be accessed here.

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Embracing the Future: The Latest Legal AI Release Signifies a Groundbreaking Shift 

Artificial intelligence (AI) has been making headlines over the past few months, and for good reason: we’re on the cusp of a technological revolution that has the potential to fundamentally change the world as we know it. The recent emergence of highly functional generative AI tools like ChatGPT, Bing Chat, and Google Bard is further evidence of this trend. With these news tools readily available and accessible, AI has ushered in a new and exciting era of innovation and efficiency.

The utility of this technology is clear from the rapid adoption of this technology, which has occurred at a rate never before seen. In just two months, ChatGPT reached 100 million users, whereas it took 4 years for the iPhone to reach that same number of users. AI adoption is occurring at an exponential rate, and as a result, generative AI tools are already a familiar concept to lawyers and the general public alike.

According to a recent report released by LexisNexis, “Generative AI & the Legal Profession 2023 Survey Report,” 86% of legal professionals surveyed shared that they were aware of generative AI compared to only 57% of all other consumers. More than a third of lawyers (36%) and nearly half of law students (44%) have used it either personally or professionally, and 19% of survey respondents reported using it in their work.

For further proof of the relevance and importance of generative AI to the legal industry, look no further than the announcement on May 4th from LexisNexis about the launch of Lexis+ AI, a generative AI platform. Lexis+ AI is built and trained on LexisNexis’ extensive repository of exclusive legal content, enabling it to provide trusted, comprehensive legal results. This technology offers features such as conversational search, insightful summarization, and intelligent legal drafting capabilities.

It promises to be more secure and accurate than consumer generative AI tools. Because it is trained on and draws from LexisNexis’ content databases, the output is more trustworthy and relevant. Inquiries are not used for training purposes and the same level of confidentiality that is maintained for traditional search queries in LexisNexis is likewise maintained for all Lexis+ AI queries, which are protected by state-of-the-art encryption and privacy technology designed to keep sensitive data secure.

Currently, Lexis+ AI has been released on a limited basis as part of its early Commerical Review Program, and product feedback is being obtained from a select group of Am Law 50 law firms, including Am Law 50 firms, such as Baker McKenzie, Reed Smith and Foley & Lardner, LLP. LexisNexis also announced its “AI Insider Program.” Legal professionals can sign up (online: www.lexisnexis.com/ai-insider) for early access to Lexis+ AI, provide input on the user experience, receive sneak previews of updates, and participate in exclusive roundtables and webinars. 

Now that LexisNexis has thrown its hat into the ring, the stage is set for an explosion of AI technologies designed for the unique needs of the legal profession. As we move forward, the influence of generative AI platforms like Lexis+ AI on the legal profession cannot be understated. The rapid adoption of these tools is set to revolutionize legal research, drafting, and analysis, resulting in previously unseen levels of efficiency and effectiveness.     

The future looks bright. Collaboration between industry giants like LexisNexis and the legal community will ensure the generative AI’s relevance, accuracy, and security, ultimately benefiting legal clients and enhancing the practice of law as a whole. By embracing these groundbreaking advancements and adapting to the ever-evolving legal landscape, lawyers and law firms will be better equipped to navigate the challenges ahead. This progressive shift will also contribute to shaping a more innovative and dynamic legal industry that is well-positioned to tackle the demands of a rapidly changing world.

Nicole Black is a Rochester, New York attorney, author, journalist, and the head of SME and External Education at MyCase  law practice management software, an AffiniPay company. She is the author of the ABA book Cloud Computing for Lawyers, co-authors the ABA book Social Media for Lawyers: the Next Frontier, and co-authors Criminal Law in New York, a Thomson Reuters treatise. She writes legal technology columns for Above the Law and ABA Journal and speaks regularly at conferences regarding the intersection of law and technology. You can follow her on Twitter at @nikiblack or email her at [email protected].