Episode 196: Legal GenAI Around the World: Australia + New Zealand
Mar 13, 2024
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Legal GenAI in Australia + New Zealand explored in this podcast, discussing challenges and benefits of using GenAI in legal businesses. Topics include building vs buying LLMs, legal drafting enhancements, impact of generative AI in legal cases, and navigating technological risks in the legal industry.
Strategic piloting and cautious education are key to responsible Gen AI implementation in legal businesses.
Organizations are favoring 'buying' established LLMs for cost-efficiency and customization in AI solutions.
'Buy vs. build' leans towards 'buy' for AI in LegalTech, emphasizing cost-effectiveness and system dominance.
Deep dives
Organizational Strategies for Implementing Gen AI
Organizations are strategically approaching the implementation of Generative AI (Gen AI) by focusing on piloting with users who understand AI and can be trusted to use it responsibly. One approach involves piloting tools like chat GPT and co-pilot with caution, emphasizing on education before granting access. Additionally, these organizations are identifying discrete testing grounds and safe experimentation areas to gradually introduce Gen AI within enterprise settings.
Leveraging Third-Party Large Language Models (LLMs)
The conversation around Large Language Models (LLMs) has shifted towards leveraging existing third-party models rather than building proprietary ones. Organizations are opting to 'buy' access to established LLMs due to cost-effectiveness, maintenance ease, and the magnitude of resources invested by major players like Google, Amazon, and Microsoft. This approach allows for customization and enrichment through proprietary data and retrieval augmented generation, enhancing the specificity and contextualization of AI outputs.
Balancing LegalTech Solutions: Discussion on Build vs. Buy Dilemma
Responding to the age-old question of 'build vs. buy' in LegalTech, organizations, especially enterprise setups, are leaning towards 'buy' as the preferred choice for implementing AI solutions. While 'buying' offers advantages in terms of cost-efficiency and security compliance, 'building' remains relevant for hyper-specific use cases and academic exploration within universities. The shift towards utilizing LLMs and exploring tools like co-pilot as default legal aids indicates a trajectory where established systems dominate the LegalTech landscape.
Adapting Legal Models Using Techniques Like RAG
Utilizing techniques like RAG, rather than building models from scratch, is becoming a common practice among law firms. While developing bespoke models could be costly, leveraging existing tools like RAG tailored to legal specifics is proving effective. This approach emphasizes the importance of internal capabilities and the need to either develop them internally or source them through third-party vendors, demonstrating a shift towards modifying existing technologies to suit legal needs.
Challenges and Opportunities in Embracing Generative AI in Legal Practices
The legal industry is undergoing significant transformation with the integration of generative AI. The discussion highlights the urgency for embracing this technology while ensuring safe and responsible use. Concerns around data privacy and confidentiality echo the need for a balanced approach. There is a call to action to engage with AI tools like GPT-3 or Co-Pilot to explore their capabilities and shortcomings, encouraging a hands-on experience to understand the technology's potential impact on legal practices.
