SHO R T TA K E S

Big Law’s Targeted Rightsizing

In this piece from Bloomberg Law, reporter Roy Strom examines a report that shows that billing rates plunged to historic lows despite rising firm headcount and declining demand. The result? Firms are under pressure to downsize, which has fed layoffs at Cooley, Gunderson and Goodwin. According to Kent Zimmerman, a partner with the Zeughauser Group, some firms will shed lawyers even as they add talent. “Targeted right-sizing will continue to pick up with a focus on lawyers who underperform expectations for years,” Zimmermann says. “Simultaneously, firms will continue to invest in teams of lawyers who are highly productive in doing the work and bringing it in at rates that drive increased profitability.”

Source: Bloomberg Law

The In-House Future Is Now

Andy Cooke, GC of TravelPerk, has been trying generative AI to upgrade his department’s internal chatbot’s responses to questions from employees about privacy, company policies, and more. Chatbots may seem smart, he says, but they are kind of dimwitted, just leveraging very large decision trees. Nevertheless, this tide will continue to rise. “We expect generative AI will substantially disrupt legal services,” Cooke says. “GPT-3.5 has demonstrated its ability to answer questions on demand with a 70%+ degree of accuracy; GPT-4 takes this accuracy up to the 90%+ level. That means lots of possible applications.

Source: Crafty Counsel

Memo to GCs: Try Lit Finance

Burford Capital, the world’s largest provider of specialized legal finance, beseeches outside counsel to buck the conventional wisdom that litigation finance is just not right. “Among the key findings from a Burford survey is that GCs are eager to see law departments transcend ‘typecasting’ as cost centers.” Additionally, GCs expect outside counsel to advise them on opportunities to add value – one of the most important factors in individual GC success. Litigation finance can help.

Source: Thomson Reuters Practical Law

Qs at the Intersection of AI and Bill Review

Wolters Kluwer is fretting about the gush of optimism at the intersection of AI and legal bill review. “With the market getting more cluttered,” WK writes, “it is important for legal technology buyers to understand the factors that separate the best from the rest. These includes: How many members of their team have direct experience in legal operations? Do bill review team members have experience as paralegals or attorneys? Do they have specialized training in using AI in bill review? How long have their team members used AI in this context? Are they recognized as leaders by outside analysts?

Source: Wolters Kluwer ELM Solutions

Case Filings Fall

The Institute for the Advancement of the American Legal System at the University of Denver (IAALS) released a new report, The Past and Future of State Court Civil Filings, concluding that significant work is needed to improve access to justice. “Historically, it’s been accepted that state court case filings climb over time in step with population growth, which has informed court planning for buildings, staff, judges, and other resources,” says IAALS CEO Brittany Kauffman. “Courts need a better understanding of what types of cases are being brought before them—and in what numbers.”

Source: LawSites

In-house Career Killers

In this piece from Sterling Miller, being an in-house lawyer is harder today than ever. One wrong move could mean a ticket to unemployment. Among the must-avoid behaviors: Dress like a mess. Even if your company has a casual dress policy, pay heed to your duds. Being an a*#$^%e! “Sometimes this strategy works at big law firms, but it rarely works in-house. Not taking admin duties seriously. “Corporations run on information and processes. Take both seriously. If you’re asked for your input on evaluating staff or paralegals or other attorneys, don’t half-ass it.”

Source: eDiscovery Team