When it comes to innovation, “if I had asked people what they wanted, they would have said faster horses,” is an infamous quote often linked to Henry Ford. This claim nicely encapsulates the quandary organizations face when trying to innovate. Customers and professionals generally aren’t always aware of new technologies or solutions that can lead to novel products and unexplored markets. This issue becomes especially challenging within the legal profession where personnel may find themselves knee-deep in unknown territory concerning new technologies, like Generative AI. Above the Law.
The late Harvard professor and author Clayton Christensen eloquently tackled this predicament in ‘The Innovator’s Dilemma,’ stating, “you can’t do market research on a market that doesn’t exist yet.” Utilizing new technologies narrows down to problem-solving at its core, as Henry Ford himself realized when he developed the assembly line for the Model T. It’s vital to recognize that we ought to solve the transportation problem, not the ‘horse’ problem. The same applies to the legal profession and the rise of AI and machine learning.
To solve current legal issues, it’s necessary to reexamine the problems to be solved. This could entail eliminating manual aspects of document review, understanding why the research is conducted, advising a client on settlement versus litigation, or automating compliance tasks. These potential areas for improvement can be facilitated using Generative AI and other technologies.
The proliferation of AI will undoubtedly alter the practice of law. Similar to how cars transformed transportation, data analytics alongside AI and machine learning could likewise change the trajectory of legal practice. Legal professionals need to scrutinize the role of the profession within a corporate setting. From advising on individual issues to ensuring compliance with the law while fostering growth and shareholder value, these critical considerations ought to be factored into the innovation process as the impact of AI becomes increasingly prominent in the sector.
Furthermore, as AI facilitates automation and shifts the value from human capital to technology, the capital structure of law firms is bound to experience a transformation. The adaptation to computation and machine learning by AI could induce a considerable shift in the billable hour paradigm that permeates the industry. The impending dilemma then will be how to convey the added value of AI to clients and determine suitable charges for AI services.
Therefore, regardless of the role—be it legal ops, attorneys, paralegals, managing partners, or general counsel—all professionals in law will be confronted with these areas of unfamiliarity. It’s during these instances that an ‘Henry Ford’ approach would be useful—focusing on identifying the larger problems that Generative AI can resolve will go a long way in understanding the potential impacts this technology can have on the legal industry and how this power can be harnessed effectively.
The original article was written by Ken Crutchfield, Vice President and General Manager of Legal Markets at Wolters Kluwer Legal & Regulatory U.S., a leading provider of information, business intelligence, regulatory and legal workflow solutions. Ken Crutchfield.