Back from #CGI24 – insp๐๐ring as always
2,300 participants, 2 from Germany, over 100 conversations, 95 sessions, parties, lack of sleep, met the President Jenn McCarron.
๐ข๐ฏ๐๐ฒ๐ฟ๐๐ฎ๐๐ถ๐ผ๐ป๐
โก๏ธ The entire legal operating and commercial model changes; I expect to see at least 5 business models (see below).
โก๏ธ CLM tools without “built-in” AI are obsolete; meticulous due diligence on suppliers is crucial.
โก๏ธ New AI solutions that act as connectors “in-between” systems.
โก๏ธ Tons of use cases under development and real-life – some of them far beyond the “first mile”.
โก๏ธ The really hard thing: Project Management, Change Management, Training, Implementation and Adoption.
โก๏ธ Standardization of data thanks to Damien Riehl (SALI) will expedite standardization of work types and data exchange.
โก๏ธ Multidisciplinary teams (MDT) are becoming standard. Managing culture and change is a top priority for leadership. I will discuss this further in “Die Zukunft der Rechtsberatung”.
โก๏ธ My favorite topic: how legal departments and law firms are already experimenting with ๐๐๐ง๐ – some of the use cases will rebalance the inhouse/law firm relationship, others the positioning of legal departments to move up the ladder from Business ๐๐ป๐ฎ๐ฏ๐น๐ฒ๐ฟ to Business ๐๐ฟ๐ฒ๐ฎ๐๐ผ๐ฟ. Data opens up entire ๐ป๐ฒ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ผ๐ฝ๐ฝ๐ผ๐ฟ๐๐๐ป๐ถ๐๐ถ๐ฒ๐ ๐ณ๐ผ๐ฟ ๐๐ฎ๐ ๐๐ถ๐ฟ๐บ๐.
๐๐ผ๐ป๐ฐ๐น๐๐๐ถ๐ผ๐ป
๐๐ ๐ฑ๐ฒ๐บ๐ผ๐ฐ๐ฟ๐ฎ๐๐ถ๐๐ฒ๐ ๐ธ๐ป๐ผ๐๐น๐ฒ๐ฑ๐ด๐ฒ ๐ฎ๐ป๐ฑ ๐ฐ๐ฎ๐ฝ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ถ๐ฒ๐. Some market participants are beyond the ideation phase: legal departments are aiming to cut their external spend by >50% on selected work types, Equity Partners worry about a significant drop of their Profit, Law Firms add Chief Data Scientists to their Board.
I expect the following segmentation of the legal market:
โ
Traditional Law Firms
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Legal ops driven suppliers (aka ALSP, MDT)
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Tech driven suppliers (AI et al.)
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Consulting (on legal ops)
โ
Legal Shared Service Center (Outsourcing)
It’s uncertain whether traditional law firms are ideally structured for tech/data-driven/Consulting models.
Nevertheless, the rules are changing, and with them supply and demand.
๐ฅ๐ฒ๐ณ๐น๐ฒ๐ฐ๐๐ถ๐ผ๐ป
I’m in Legal Ops since 2018, have been to
#CGI multiple times, what I’ve seen this year follows patterns of tech-driven change in other industries in which I was allowed to work: Some may remember that booking a flight once required some sort of coding skills in a CRS, specialized knowledge of a select group of people. Need a Website? Years ago you had to hire an agency, nowadays a question of 1h from ideation to go-live for 2 EUR/month. Less travel agents? Less coders? Less Webdesigners? No, companies transformed themselves, roles changed, new services have been developed.
AI is an opportunity as well as a risk, it’s just a question of perspective.
๐ฉ๐ฒ๐ด๐ฎ๐: ๐’๐น๐น ๐ฏ๐ฒ ๐ฏ๐ฎ๐ฐ๐ธ.