Law Subscribed (167) Legaltech + Subscriptions with Tom Pfennig of GOLT AI
Sign up for Practi, a new platform that helps law firms use subscription billing.
Here are the top 5 takeaways from this episode:
* AI is “Augmented Intelligence” and a Catalyst for Transformation: AI should be viewed as an augmenting tool to enhance legal work, not a “magic box” for perfect results. The systemic and responsible deployment of AI/legal tech is essential for a business transformation that shifts from a reactive to a proactive service delivery model, ultimately freeing up time from mundane tasks.
* Focus on Strategy First, Tools Second (Stage One vs. Stage Two): The mistake many make is focusing on the sheer number of AI tools (Stage Two) before defining a strategy (Stage One). The first step should be to map current operations, identify pain points, define a target operating model, and understand what to do with the surplus capacity created by efficiency. Deploying tech without a defined structure is “piecemeal.”
* The Human Element and Risk Allocation Remain Critical: Despite advancements in AI, people still seek lawyers for human interaction, to assign and share accountability, and to feel a sense of confidence and comfort in resolving legal problems. The human lawyer acts as a “guardian” and “shield,” and human judgment is necessary for interpreting legal dilemmas, especially since a 1% uncertainty will always exist, regardless of machine precision.
* The Need for Purpose-Built Technology: Using a single, ultimate generalist AI tool for everything in law is like “trying to saw a two by four with a power drill.” Lawyers must select technology that is purpose-built for specific use cases (e.g., contracts, litigation, research) to achieve true efficiency and higher-quality work.
* A Shift in Business Model is Essential for AI Success: The full potential of AI cannot be realized if the fundamental incentive structure remains the billable hour. If all incentives are to “bill more time,” AI’s 4% time saving is seen as lost revenue. However, by adopting models like subscriptions or value-based billing, AI helps with problem avoidance and speed to deal, making the more efficient model more profitable.
__________________________
Want your question to be answered on a future show? Fill out this short survey.
Check out G.O.L.T.
Sign up for Paxton, my all-in-one AI legal assistant, helping me with legal research, analysis, drafting, and enhancing existing legal work product.
Get Connected with SixFifty, a business and employment legal document automation tool.
Sign up for Gavel, an automation platform for law firms.
Visit Law Subscribed to subscribe to the weekly newsletter to listen from your web browser.
Prefer monthly updates? Sign up for the Law Subscribed Monthly Digest on LinkedIn.
Check out Mathew Kerbis’ law firm Subscription Attorney LLC.
Want to use the subscription model for your law firm? Click here to sign up for a new platform that helps law firms use subscription billing.
Get full access to Law Subscribed at www.lawsubscribed.com/subscribe