August 2024
This article was originally published in Hong Kong Lawyer Magazine and has been republished here with permission. The original article can be accessed here. The article is written by Sonali Khemka, Lead Editor, Hong Kong Lawyer.
The impact of artificial intelligence (AI) on various sectors is profound, and the legal industry is witnessing significant transformations as well. Integrating AI into legal practices brings numerous advantages, including heightened efficiency, cost reduction, and improved client experiences. A key benefit of AI in the legal realm is its capacity to swiftly and accurately process and analyse large datasets. This ability not only accelerates legal research and due diligence but also aids in forecasting case outcomes, thereby empowering lawyers to make better-informed decisions. Additionally, AI-powered tools can automate routine tasks such as contract review and document drafting, allowing lawyers to concentrate on more intricate and strategic elements of their work.
In addition to operational efficiencies, AI is also fostering innovation within the legal industry. AI-powered platforms can provide insights and analytics that were previously unattainable, helping law firms and legal departments to develop new strategies and approaches. For instance, predictive analytics can assist in identifying litigation trends and potential risks, allowing for proactive management of legal issues. Moreover, AI’s ability to facilitate better client interactions through personalised services and real-time support is revolutionising client-lawyer relationships. As the legal industry continues to embrace AI, it is poised to not only enhance its traditional functions but also to redefine the future of legal services, making them more accessible, efficient, and effective.
The “Asia Legal Priorities 2024 – AI, Legal Tech and Operational Excellence” panel roundtable, hosted by Thomson Reuters at the Hong Kong International Arbitration Centre (HKIAC), brought together leading minds in the legal profession to discuss the evolving landscape of legal technology and transformation. Jane Lewis, Vice President of Content Sales in the Asia and Emerging Markets region at Thomson Reuters, opened the session by highlighting the rapid changes and opportunities presented by legal technology. The event, which saw a tremendous response, underscored the profession’s keen interest in leveraging technology to enhance efficiency and service delivery.
Jane Lewis: Embracing Change with Technology
Jane Lewis kicked off the event by emphasising the significant changes in the legal profession, driven by the adoption of legal technology. She noted that Thomson Reuters has been integrating AI in its solutions for over three decades, and the advent of generative AI (Gen AI) and large language models (LLMs) is proving to be a game-changer. She pointed out that besides products like Westlaw and Practical Law, legal solutions such as HighQ, Legal Tracker, and Contract Express have also been well-received. This, combined with the recent acquisition of Casetext, as well as the introduction of CoCounsel to the Hong Kong and neighbouring markets, mark a pivotal shift in Thomson Reuters’ evolution as a content-driven technology provider.
“Change is nothing new,” Lewis stated. “Professionals have been long adapting to new ways of working, but I think Gen AI and the related technologies probably bring more disruptive potential.”
Joanne Lau: HKIAC’s Commitment to Legal Tech
Joanne Lau, Secretary General of HKIAC, welcomed the attendees and expressed HKIAC’s commitment to integrating technology in dispute resolution. She highlighted that HKIAC handles a variety of cases, including arbitration and mediation, and has incorporated technology in its arbitration rules since 2018.
“These days, I think it’s relatively uncontroversial now to use tech to improve processes to make things run more efficiently,” Lau said. She also pointed out the growing relevance of generative AI in award writing, arbitrator selection, and legal research.
Rob Head: Industry Findings and AI Integration
Rob Head, Proposition Director at Thomson Reuters, presented the latest survey findings on legal priorities of law firm business leaders and practitioners in Asia. He noted that data protection and cybersecurity remain top priorities, with generative AI and ESG (Environmental, Social, and Governance) issues also gaining prominence.
“Imagine giving everyone on your team their own counterpart who can help them with whatever they ask,” Head quoted a legal director from Hong Kong. This sentiment reflects the potential productivity gains from AI integration.
He also highlighted the critical risk considerations, such as accuracy, reliability, and ethical implications, when applying AI technologies in legal practice.
Panel Discussion: Practical Insights and Future Vision
The panel discussion, moderated by Stephanie Siu, AI and Legal Tech Lead at Thomson Reuters, featured esteemed panelists from various sectors:
- Ben Bury, Director & Group General Counsel, Gammon Construction
- John Koshy, Head of Group Legal Affairs, Jardine Matheson
- Jia-Yi Tay, Managing Associate, Linklaters
- Sebastian Ko, General Counsel DFX Labs
- Elsa Ho, Senior Legal Operations Manager, HSBC
Ben Bury: The Need for Greater Adoption
Ben emphasised the need for greater adoption of legal technology among lawyers. He pointed out that while technology is available, it is not being utilised to its full potential, especially in private practice and in-house settings.
“We need to start using this fantastic technology to start bringing down the costs of legal services,” Ben argued. He also stressed the importance of law firms getting ahead of the curve in investing in technology to improve service delivery.
John Koshy: Experimenting with Gen AI
John shared Jardine’s journey in experimenting with Gen AI for contract summarisation and drafting. Partnering with universities and deploying enterprise versions of AI tools, they have been able to explore the technology’s potential while addressing cybersecurity and data privacy concerns.
“AI will not take your job, but a lawyer who knows how to use AI effectively and efficiently could,” John noted, highlighting the importance of embracing AI to enhance productivity.
Jia Yi Tay: Legal Tech in Private Practice
Jia Yi from Linklaters shared practical anecdotes about using legal tech tools like Contract Express, AI contract reviewing tools, and legal search tools. She emphasised the significant cost savings and efficiency gains from these tools – despite these tools not being as technologically advanced as Gen AI tools.
“Technology helps us achieve these things, right? If you think about all the tools I mentioned earlier… these are all the low-hanging fruit,” Jia Yi said, arguing that with Gen AI, the cost-saving potential could be even more substantial, compared to that of the simpler tools that have been commonly used so far. She also pointed out that clients are increasingly asking about the innovative methods law firms use to improve efficiencies.
Elsa Ho and Sebastian Ko: Change Management and Stakeholder Engagement
Elsa and Sebastian discussed the importance of change management and stakeholder engagement in implementing legal tech. They stressed the need for top-down buy-in and bottom-up engagement to ensure successful adoption.
“Change management should not happen the minute you decide to buy a tech. It should happen before and throughout because technology evolves,” Elsa advised.
Sebastian added that finding internal allies and leveraging existing enterprise solutions can help build a minimum viable product to prove the technology’s value.
Practical Tips for Lawyers
The event provided several practical insights and tips for lawyers looking to embrace legal technology:
Experimentation and Adoption of AI: Encouraging legal teams to experiment with AI to understand its potential and limitations. As John highlighted, partnering with universities and using sandbox environments can provide a safe space to explore new technologies.
Cost Efficiency and Legal Spend Management: Using technology to manage legal spend and improve service delivery. Ben’s use of Legal Tracker to monitor legal spend and ensure cost-efficiency is a practical example.
Change Management and Stakeholder Engagement: Ensuring top-down buy-in and bottom-up engagement is crucial for successful tech adoption. Elsa’s advice on involving stakeholders early and throughout the process is essential for overcoming resistance and ensuring smooth implementation.
Transparency and Accountability: Ensuring transparent and responsible use of AI and other technologies. Jia Yi’s mention of Linklaters’ AI charter and commitment to transparency and client communication is a best practice.
Leveraging Existing Solutions: Utilising existing enterprise solutions and building minimum viable products to prove the technology’s value before making significant investments. Sebastian’s approach of using existing tools and finding internal allies to support tech initiatives is practical and cost-effective.
Client Communication and Collaboration: Having transparent conversations with clients about the use of technology and how it benefits them. Jia Yi’s point about clients increasingly asking about innovative methods and how they improve efficiencies is a reminder of the importance of client communication.
Conclusion: A Call to Action
The event concluded with a call to action for legal professionals to embrace technology not just as a tool for efficiency but as a means to transform their practice fundamentally. The panelists’ insights underscored the importance of continuous experimentation, transparent client communication, and strategic stakeholder management in successfully navigating the technological shift in the legal industry.
As Jane Lewis aptly put it, “I think this is a tremendously exciting time for the legal profession.” The event highlighted that with the right approach, legal technology can indeed be a powerful enabler of growth and innovation in the legal sector.
The event provided valuable insights and practical tips for lawyers looking to navigate the rapidly evolving landscape of legal technology. By embracing change, experimenting with new tools, and engaging stakeholders effectively, legal professionals can harness the power of technology to enhance their practice and deliver greater value to their clients.
