Keep your finger on the legal world's pulse

A new study, Keeping Pace: Law Firms in the Era of AI-Driven Business, highlights the transformative impact of artificial intelligence (AI) on legal services, pushing legal departments to demand faster contract reviews, real-time risk assessments, and quicker regulatory guidance. Authored by Aaron Boersma, the report emphasizes that law firms must integrate AI to manage larger workloads efficiently, without sacrificing quality. This shift is accelerating the move toward value-based billing models, moving away from the traditional billable hours framework. David Simon, chief legal affairs officer at the Philadelphia College of Osteopathic Medicine, asserts that clients expect law firms to utilize AI tools to enhance efficiency. Similarly, Andrew Woods, general counsel at PubMatic, notes that AI challenges the conventional law firm billing model by promoting efficiency, which contrasts with the entrenched practice of billing by the hour. Ken Callander, founder of Value Strategies, underscores the need for law firms to transition to value-based pricing, where fees reflect the value of services delivered rather than time spent. The report warns that firms slow to adopt AI could hinder corporate growth and risk obsolescence. Ultimately, embracing AI is positioned as essential for law firms to stay competitive and meet evolving client expectations in an increasingly AI-driven business landscape. 

 

Corporate Counsel

The integration of artificial intelligence (AI) into alternative dispute resolution (ADR) is poised to transform the legal landscape. As Oliver Roberts, co-head of Holtzman Vogel's AI practice group, notes: "The convergence of AI and ADR reflects a natural progression driven by clients seeking to reduce litigation time and costs." While current AI applications in ADR are limited to tasks like document analysis and legal research, the vision of an autonomous AI court system could revolutionize dispute resolution. This system would eliminate human judges and lawyers, allowing AI agents to represent litigants and make decisions in minutes. However, challenges such as technological limitations, potential biases in AI training data, and public trust issues must be addressed before such systems can be implemented. Local governments and large corporations may be the first adopters, utilising AI for straightforward disputes. The ethical implications of removing human decision-makers from the legal process will also need careful consideration.

 

Bloomberg Law

The American Bar Association (ABA) is revising its diversity, equity, and inclusion language standards for law schools following public feedback. A memo from the ABA revealed that the Standards Committee is making changes to Standard 206 to clarify that the Council remains committed to the values of diversity and inclusion. The committee stated: “In light of the comments received, the Standards Committee recommends further revisions to Standard 206 to make it clear that the Council is not abandoning the value of diversity and inclusion.” This decision comes after critiques suggested that previous proposals could undermine the importance of diversity in legal education.

 

Bloomberg Law

While Paul Weiss’s recent move to a closed compensation system led some to speculate about a broader trend, industry consultants say Big Law firms are not shifting en masse toward fully closed models. However, law firms are increasingly reducing the accessibility of partner compensation data. Instead of sending detailed spreadsheets directly to partners, many firms are using secure portals and dashboards that require partners to actively seek out the data. Legal consultants note that this trend aims to minimize partner dissatisfaction by limiting easy comparisons, though some firms continue to prioritize transparency to uphold established cultural expectations.

 

The American Lawyer

Irwin Raij, a partner and co-chair of Sidley Austin's Entertainment, Sports, and Media Group, finds that the most valuable lessons come not from the boardroom but from his role as a father. With four young children, Raij juggles high-stakes sports law and the challenges of parenting, focusing on presence, teamwork, resilience, and negotiation. Raij emphasizes being fully engaged when he’s with his family. “The goal isn’t to be perfect but attentive,” he notes, strengthening connections with both family and colleagues. Teamwork is key in both spheres, and he draws parallels between his Sidley team and the support system he shares with his wife and extended family. A strong work ethic, shaped by his immigrant roots, is central to the lessons he shares with his children, as is the art of negotiation. From vacation plans to bedtimes, involving his kids in small decisions teaches compromise. Raij’s approach to work and home aligns seamlessly: presence, collaboration, and resilience, values that guide him in both his professional and personal journeys.

 

Daily Business Review

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo is once again giving its employees a paid day off for the 2024 Election Day, following its initiative from 2020. Despite this, many firms that previously offered full days off during the 2020 election have not confirmed similar plans this year. Firms like Hogan Lovells and Paul, Weiss, Rifkind, Wharton & Garrison are adhering to state-mandated PTO, typically offering two hours for voting. Notably, Mintz is also encouraging active civic engagement, such as poll-watching and legal assistance. Missouri-based Stinson is closing offices and having 60 attorneys volunteer for election protection. Meanwhile, many states offer limited or no time-off protections for voting.

 

The American Lawyer

In anticipation of Election Day, major law firms are ramping up lateral hiring in regulatory, enforcement, and litigation areas. Arnold & Porter Kaye Scholer welcomed Bill Efron, former Federal Trade Commission (FTC) northeast regional director, to its antitrust practice in New York. Katten Muchin Rosenman re-hired David Gonen, previously with the FTC's Mergers I Division, as a partner in its D.C. commercial litigation practice. ArentFox Schiff brought in Christopher Skinner, an expert in international trade regulations, while Davis Wright Tremaine added bank regulatory lawyer Max Bonici as a partner in D.C. These moves reflect the firms’ focus on bolstering regulatory expertise in a rapidly evolving legal landscape.

 

The National Law Journal

Holwell Shuster & Goldberg (HSG) is redefining the training of associates in the legal field by prioritizing hands-on experience and empowerment. Founded in 2012 by Richard Holwell and former colleagues, the firm has gained recognition as Benchmark Litigation’s New York Law Firm of the Year. Associates at HSG enjoy competitive compensation, matching the Cravath salary scale since 2016, but the firm’s true strength lies in its commitment to professional development. Lauren Cole, a fourth-year associate, said "I have yet to ask for an opportunity that I did not get," highlighting the firm’s supportive culture. Ian Miller, another associate, described the thrill of trial work, noting the immediate impact of his contributions during a case against Walmart, which resulted in a $101m verdict. HSG’s focus on practical learning ensures that associates are well-prepared for successful careers in litigation.

 

Above the Law

In a closely-followed Missouri trial over alleged health risks from cow's milk-based infant formula, Kirkland & Ellis partner James Hurst has been sanctioned for "bad faith" by Judge Michael Noble. The order bars Hurst from presenting further evidence or closing arguments for the remainder of the trial. The case involves allegations that Abbott Laboratories' and Reckitt Benckiser’s formulas caused necrotizing enterocolitis (NEC), a potentially fatal gastrointestinal illness in infants. Judge Noble cited Hurst for repeated breaches of court orders and tactics that could be viewed as aiming to provoke a mistrial, stating that Hurst attempted to "inflame and prejudice the jury." While Abbott’s spokesperson defended Hurst’s professionalism, Judge Noble warned that further violations could lead to his disqualification from the trial.

 

Law

The National Labor Relations Board (NLRB) has accused Apple of unlawfully preventing employees from discussing pay equity, and of pressuring engineer Cher Scarlett to quit after she initiated a survey on wages. The complaint, filed by the NLRB's Oakland office, claims Apple enforced broad confidentiality rules and restricted discussions on platforms including Slack. Scarlett, who co-founded the “Apple Too” campaign, faced retaliation for her involvement in discussions about workplace discrimination. The NLRB is seeking a court order for Apple to inform employees of their rights and to reinstate Scarlett with compensation. “We strongly disagree with these claims,” said an Apple spokesperson. The complaint is part of a series of recent allegations against Apple regarding its labor practices.

 

Los Angeles Times

The 5th U.S. Circuit Court of Appeals has ruled that Elon Musk's 2018 tweet regarding unionization at Tesla is constitutionally protected speech. On May 20, 2018, Musk tweeted: “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues and give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare.” The court's decision overturned a previous order from the National Labor Relations Board (NLRB) that deemed the tweet a threat to employee stock options. The majority opinion stated: “We hold that Musk's tweets are constitutionally protected speech and do not fall into the categories of unprotected communication.”

 

The Columbian

The U.S. Treasury Department has issued new rules seeking to limit U.S. investments in China for military technology. The rules were directed by an executive order signed by President Joe Biden in August 2023 covering three key sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence (AI) systems. U.S. individuals and companies are mandated to report transactions involving "technologies and products that may contribute to a threat to the national security of the United States" to the federal government. Fines of up to $368,136 or twice the value of the prohibited transaction, whichever is greater, could be imposed on violators. The Treasury Department is establishing an Office of Global Transactions to oversee the new regulations.

 

Newsweek

Reuters

Microsoft has claimed that Google is running “shadow campaigns” to discredit the software giant with European regulators. In a blog post, Microsoft deputy general counsel Rima Alaily said Google is behind a coalition of cloud companies which aims to influence policy makers and “mislead the public.” The Microsoft lawyer wrote: “This week an astroturf group organized by Google is launching . . . It is designed to discredit Microsoft with competition authorities, and policymakers and mislead the public. Google has gone through great lengths to obfuscate its involvement, funding, and control, most notably by recruiting a handful of European cloud providers, to serve as the public face of the new organization.” CNBC says the conflict is the renewal of a fight between two companies that do battle in cloud infrastructure as well as online advertising and productivity software.

 

Techcrunch

CNBC

Cuncannon Law, a new plaintiff-focused firm in New Zealand, is making significant strides in the legal landscape. Founded by Fionnghuala Cuncannon, alongside partners Adina Thorn and Kate Muirhead, the firm has quickly established itself with notable victories. Cuncannon Law has been involved in high-profile cases, including a class action against ANZ and ASB banks regarding interest rate swap mis-selling, potentially affecting over 100,000 customers. The firm also secured a confidential settlement for Intueri shareholders following the company's collapse in 2017. Cuncannon Law's emergence highlights a shift in New Zealand's legal market, driven by third-party funding that enables plaintiffs to challenge corporations and government entities more effectively. As Cuncannon states, "the ability of litigation funding options to open the way for plaintiffs continues to level the playing field."

 

LawFuel