Welcome back to the Big Law Business column. Today, we are exploring DLA Piper’s strategic approach towards embracing Artificial Intelligence (AI).
DLA Piper’s US vice chair, Loren Brown, stands out among law firm leaders due to his ability to articulate a business plan centred around generative AI. His strategy focuses on harnessing AI-related work today, while also investing in talent and technologies that are crucial for the law firm of the future.
Brown recognizes that while disruptive AI technologies could dent the traditional business model of charging hefty sums for lawyers’ time, they can also make lawyers more efficient. Brown proposes a future where law firms are powered by AI-driven business models, with the expectation of generating enough legal matters to counterbalance the work taken over by more efficient machines.
Elaborating on this strategy, Brown previzualised a preference towards billing systems based on value rather than charging exaggerated hourly rates for automatable work. In his view, it is inevitable that technology will most disrupt routine aspects of the business, and he embraces this future with equanimity.
Brown also offered reassurance regarding the widespread fear that AI might undermine the traditional law firm model. He emphasized that the adoption of AI tools will not render exceptional lawyers redundant. Instead, he opines that the future trend could be competition based on the effective utilization of technology in conjunction with their track record and relationships. He claimed that if DLA Piper can inline unique AI tools with their already exceptional legal services, it can propel the firm into a dominating market position.
As part of their strategy, DLA Piper plans to position itself as the leading defender of AI algorithms, both in courtrooms and with government regulators. Critical to this endeavour is building a team that deeply understands how AI works, a process that started with the hire of Danny Tobey, a Yale-trained lawyer with a medical degree and software start-up founder, in 2018. Since then, the firm has expanded its team of data scientists and made significant strides in AI work chains.
DLA Piper’s AI-based services have already been generating substantial multi-figure revenues. For instance, DLA Piper has assumed pivotal roles in early cases dealing with injuries attributed to large language models (LLMs) such as defending Microsoft in a lawsuit alleging defamatory search results by Bing’s AI or representing OpenAI in a defamation case.
Beyond courtroom defenses, DLA Piper has also been involved in lobbying for AI-related legislation. The firm has worked on behalf of several AI-centric companies such as Sam Altman-led Open AI and medical research company Path AI.
Moving toward creating new work products fueled by AI, DLA Piper is developing tools that, when combined with human advice, offer unique insights. DLA Piper’s ‘proactive compliance’ tool, which screens employee communications for potential legal breaches, is one such example. This tool promises a significant shift towards preventing legal issues, rather than resolving them later.
As AI continues to reshape the legal landscape, DLA Piper’s thoughtful yet assertive acceptance of AI technologies represents a strategic playbook for the forward-looking law firm.