49 - Purpose-Built vs. General Gen AI: Finding the Right Fit with Eric DeChant

Dec 18, 2024

Eric DeChant, founder of Gammawave AI, shares his expertise at the intersection of AI and law. He discusses the rise of AI roles in law firms and the prevalence of 'innovation theater'—creating roles and tools that prioritize appearances over real needs. Eric emphasizes the importance of impactful AI use cases, like HR and marketing, while highlighting trust issues surrounding value-based billing. He also advocates for small, purpose-built AI solutions to enhance privacy and efficiency in legal processes.

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INSIGHT

AI in C-Suite Titles

C-suite roles with "AI" in their titles are becoming more common, but this may be more for show than substance.
Some organizations genuinely leverage AI, while others use it as "innovation theater."

ANECDOTE

Innovation Theater

Legal innovation job titles increased by 2000% in 10 years, but actual innovation work hasn't kept pace.
Many KM professionals with added "AI" to their titles report their jobs haven't materially changed.

ANECDOTE

Client Distrust of Flat Fees

Clients sometimes distrust law firms' data-driven flat fees, preferring hourly billing due to perceived lack of transparency.
This distrust highlights a significant barrier to wider adoption of value-based billing.

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In this episode, Eric DeChant joins Ted to explore the transformative potential of AI in the legal industry. From the rise of AI-driven C-suite roles to the nuanced challenges of trust in value-based billing, this conversation delves into the critical dynamics shaping legal tech today. Eric offers practical insights on leveraging purpose-built AI tools, tackling innovation theater, and aligning AI strategies with organizational realities.

In this episode, Eric shares insights on how to:

Navigate the emergence of AI-focused C-suite roles in organizations
Identify and implement impactful generative AI use cases in law firms
Evaluate the readiness of AI tools for operational use in the legal industry
Balance innovation aspirations with practical constraints in legal tech
Use small language models locally to ensure privacy and efficiency

Key takeaways:

The legal industry's adoption of AI often prioritizes appearance over substance, with many roles and tools being created as part of "innovation theater" rather than to address real needs.
Effective AI implementation in legal contexts requires deep collaboration with existing vendors and a strategic focus on low-risk, high-reward business use cases like HR and marketing.
Trust remains a significant barrier to value-based billing in law; even advanced analytics often fail to persuade clients to move away from billable hours.
Small, purpose-built AI solutions, such as tools for patent drafting or local language models, demonstrate significant efficiency gains without compromising privacy.

About the guest, Eric DeChant:

Eric DeChant is the founder of Gammawave AI, a consultancy offering AI and innovation advisory services to law firms, corporations, governments, and nonprofits, with a focus on building intelligent systems, addressing technology threats, and protecting intellectual property. Formerly the Product Director at xMentium, an AI-driven SaaS platform for Fortune 500 legal departments, Eric combines practical expertise with technical knowledge. He holds an M.S. in Law from Northwestern University and a B.A. in Business & Project Management from DePaul University. Eric also founded The American Society of Legal Engineers (ASLE) and publishes on legal tech innovation. A registered patent agent, PMP, and AIGP, he enjoys captaining charter yachts on Lake Michigan.

“One of the worst tricks ChatGPT pulled on the world was convincing everyone AI was good at everything.” – Eric DeChant

Connect with Eric DeChant:

Website: https://www.gammawave.ai/

LinkedIn: https://www.linkedin.com/in/ericdechant/

Connect with Ted Theodoropoulos:

Website: https://getinfodash.com/

LinkedIn: https://www.linkedin.com/in/tedtheo

YouTube: https://www.youtube.com/@getinfodash/podcasts