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The co-founders of Harvey were inspired to create a domain-specific AI for the legal sector after discovering the capabilities of GPT-3. They conducted a practical test by taking common landlord-tenant questions from a legal advice subreddit and used AI to generate responses. Remarkably, 86 out of 100 responses were considered suitable by attorneys for client communication, revealing the potential for AI to handle legal queries effectively. This served as a pivotal moment that encouraged them to pursue building a company around this technology.