50 - Balancing Innovation, Efficiency, and Resistance to Change with Neill Pemberton
Jan 8, 2025
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Neill Pemberton, an Associate Partner at IBM Consulting and expert in Generative AI for professional services, dives into how AI is transforming the legal industry. He discusses the challenges of cultural resistance to innovation and how smaller AI models can enhance efficiency while addressing privacy concerns. Neill highlights the importance of integrating AI in manageable, low-risk ways to build trust within law firms, and he emphasizes the shift from traditional AI to generative AI. This conversation offers invaluable insights for legal professionals looking to navigate the evolving tech landscape.
Smaller, efficiently trained AI models, like IBM's Granite AI, can effectively reduce costs while maintaining high performance in legal applications.
Overcoming resistance to change within law firms necessitates a shift in focus towards integrating AI in low-risk environments to build confidence and foster innovation.
Deep dives
Transition from Traditional Legal Work to Technology
The speaker highlights the shift from traditional legal work to a focus on technology within the legal sector. Having spent significant time at Denton's and later in a tech startup, he found the transition to legal technology thrilling, particularly as he witnessed the rapid advancements in fields like AI. He joined a startup that utilized AI to enhance the efficiency of commercial real estate reporting, a move that significantly broadened his career opportunities. This journey culminated in his current position at IBM, where he marries his legal expertise with technological advancements to drive innovation in the legal space.
Impact of Generative AI on the Legal Industry
Generative AI has revolutionized how legal tasks are approached, creating both excitement and skepticism concerning its capabilities. The speaker discusses various advancements in AI, particularly the earlier versions leading up to models like GPT-4. While the Goldman report suggests that 44% of legal tasks could be automated, he expresses caution, viewing such estimates as overly optimistic in the short term. The evolutionary path of AI in legal work shows promising case studies, allowing firms to leverage generative AI for time-consuming tasks, albeit under the vigilant oversight of seasoned professionals.
Challenges of Technology Implementation in Law Firms
The podcast addresses the inherent challenges law firms face when integrating new technologies, particularly AI. The speaker emphasizes the conservative nature of the legal profession, where many lawyers resist change due to a strong preference for the status quo, coupled with a low tolerance for errors. With senior partners tending to prioritize short-term gains over long-term innovation investments, this creates a barrier to successful tech adoption in firms. However, by examining internal workflows and high-impact areas where technology can augment existing practices, law firms can begin to cultivate a culture more open to innovations.
The Future of AI in Legal Practice
Looking ahead, the discussion converges on the potential for small and mid-sized law firms to benefit from AI advancements. The speaker notes that while generative AI offers opportunities for more substantial firms, smaller firms can also capitalize on accessible AI tools for efficiency. As clients increasingly demand transparency and speed, there is a pressing need for legal practices to adopt AI solutions and modernize their operations. The conversation concludes with the notion that with proper governance and monitoring in place, AI integration can enhance not just the practice of law but the business of law overall.
In this episode, Ted sits down with Neill Pemberton, Associate Partner at IBM Consulting, for a thought-provoking exploration of how AI is reshaping the legal industry. From leveraging smaller, greener models to overcoming cultural resistance within law firms, Neill shares his expertise in navigating the dynamic landscape of legal technology. Whether you're curious about the shift from traditional AI to generative AI or looking for strategies to maximize ROI on AI adoption, this conversation offers valuable insights for law professionals at every level.
In this episode, Neill shares insights on how to:
Integrate AI into legal workflows effectively
Balance innovation with cost efficiency in law firms
Navigate the shift from traditional AI to generative AI in legal practice
Use small AI models to address privacy and energy concerns
Overcome resistance to change within law firms
Key takeaways:
IBM’s Granite AI models use only 8 billion parameters, proving that smaller, efficiently trained models can achieve high performance while reducing costs and energy consumption, making them ideal for enterprise applications.
Law firms can maximize the value of generative AI by integrating it with their existing labeled data, enabling more accurate and cost-effective workflows for tasks like clause identification and document review.
Incrementally introducing AI through low-risk, back-office functions like internal policy management or HR tasks allows firms to build confidence in the technology while avoiding the risks associated with client-facing errors.
Overcoming lawyers’ deeply ingrained "lone wolf" mindset requires strategic leadership and innovation teams to create a culture that prioritizes collaboration and long-term investment in transformative technology.
About the guest, Neill Pemberton:
Neill Pemberton is a former solicitor in England and an expert in the use of Generative AI in professional services. After 10 years at the global law firm Dentons, Neill joined Orbital Witness, where he became Head of Legal Innovation and grew the Legal Engineering team from one qualified lawyer to seven in just two years. Neill is now an Associate Partner with IBM Consulting.
“We use our own models, but we use others too. We use Llama and all sorts in our day-to-day work, and we find we can get good results using small models. So I think it's about how you use it, rather than what it is that you use.” – Neill Pemberton