AI Saves Lawyers Time and Money, Boosting Profits by 80%

Law firms, facing pressure on costs and differentiation, implemented LegalMation’s AI solution. This automates routine tasks like initial response drafts, achieving an estimated 80% cost reduction and freeing time for higher-value work. The AI also helps create more competitive fee arrangements and improves associate satisfaction.

Client:

LegalMation is the market leader in AI-driven solutions for high-volume litigation. By uniting accomplished lawyers with skilled technologists, the company develops innovative solutions that automate and expedite routine tasks, enabling law firms to reallocate resources to more vital endeavors.

 Problem Statement:

The law firms face several challenges in its legal operations, each demanding unique solutions to ensure sustained growth and competitiveness in the industry. Thirstly, as clients seek cost-effective solutions, the law firms must balance providing quality services with maintaining profitability in these matters.

With pressure on law firms to differentiate services and lower costs, they are searching for ways to become more competitive and capture more market share. Secondly, there’s a need to make Alternative Fee Arrangements (AFAs) both more competitive and profitable.

Thirdly, lack of work product consistency from associates/paralegals demands from law firms implementing standardized processes. Recognizing an opportunity to assist law firms in saving time, reducing costs, and reallocating resources to more valuable tasks, such as litigation strategy, LegalMation sought innovative solutions to address the challenges.

Results:

• An estimated 80% cost reduction;
• Initial response drafts created in less than 2 minutes;
• Achieved time savings of up to 80% on critical litigation tasks;
• Increased profitability through Alternative Fee Arrangements (AFAs);
• Enhanced marketing distinctiveness;
• Elevated associate satisfaction levels.

AI Solution Overview:

Partnering with IBM, LegalMation received access to an IBM Watson® Discovery sandbox environment. LegalMation identified that the tool should analyze complaints and create initial response drafts. LegalMation began by providing thousands of lawsuits, complaints, and responses to train IBM’s Watson AI in the specialized language of civil litigation.

Subsequently, they fine-tuned these results with input from a team of subject matter experts. Through iterative refinement, LegalMation developed an intelligent model, which they integrated with their own proprietary software.

References:

1. 5 AI Case Studies in Law. https://www.vktr.com/ai-disruption/5-ai-case-studies-in-law/
2. LegalMation helps legal teams draft high-quality litigation work in minutes. https://www.ibm.com/case-studies/legalmation
3. An Am Law 100 labor and employment law firm was searching for ways to become more competitive and capture more market share. https://www.legalmation.com/law-firms/
4. LegalMation Announces $15M In New Funding to Drive its Commitment to Becoming the Leading AI-Powered Litigation Support Platform Across the LegalTech and InsurTech Ecosystems https://www.prnewswire.com/news-releases/legalmation-announces-15m-in-new-funding-to-drive-its-commitment-to-becoming-the-leading-ai-powered-litigation-support-platform-across-the-legaltech-and-insurtech-ecosystems-301966746.html

Industry: Legal

Vendor: IBM Watson

Client: LegalMation

Publication Date: 2023