Seven Observations Regarding Innovation and the Legal Industry - Professor Daniel Martin Katz
-
Upload
daniel-martin-katz -
Category
Documents
-
view
388 -
download
1
Transcript of Seven Observations Regarding Innovation and the Legal Industry - Professor Daniel Martin Katz
seven observations
by daniel martin katz
edu | chicago kent college of law
blog | ComputationalLegalStudies.com
corp | LexPredict.com
regarding innovation and the legal industry
page | DanielMartinKatz.com
Enterprise Law
statistics via Bill Henderson
Entities with (>50+Million)Fortune 1000 other large entities
Enterprise Law
statistics via Bill Henderson
Size of Market $150 billionNumber of Potential Clients 40,000
Small/Medium Enterprises
statistics via Bill Henderson
Size of Market $60 billionNumber of Potential Clients 6 million
Retail / Main Street
statistics via Bill Henderson
Number of Potential Clients 318 million
Size of Market $75 billion (with huge potential upside)
lex.startup
horizontal integration of legal IT
polytechnic legal education
complexity and legal production functions
quantitative legal prediction
lean law
seven observations
technology aided access to justice
In the face of ever growing legal complexity we have applied greater and greater numbers of human experts to solve the underlying problem
Legal Expenditures as a function of GDP(some disagreement between these plots but they project a similar trend)
Labor Capital
Cobb Douglas is the traditional way
to describe a production
function
historically we have turned this dial
15 425+2009 2015
Law or Legal Related Companies as highlighted by Josh Kubicki @ ReInventLaw London 2013
Lex.Startup
R e p o r t e d s a l e price between $35 million and $40 million.
Final Number was l i k e l y b e t w e e n $80 - $100 million
A n u m b e r o f venture capitalists have invested in t h e c o m p a n y , including Si l icon Valley’s Sequoia C a p i t a l w h i c h invested $7 million in 2007 ....
Every organization needs relevant human capital
(and in law such human capital is in limited supply)
Quantitative Legal Prediction
- or -
How I Learned to Stop Worrying and Start Preparing for the Data Driven Future of the Legal Services Industry
Daniel Martin Katz Assistant Professor of Law Michigan State University
2013
“The software identifies standard and terms in contracts, and its benchmarking tools show lawyers how their current document compares to the standard.”
General Counsels as Legal Procurement Specialists
TyMetrix - Using $50 billion+ in Legal Spend Data to Help GC’s Look for Arbitrage Opportunities, Value Propositions in Hiring Law Firms
Legal Procurement (High End of Market)
BlackReed
FrankfurterDouglasJacksonBurtonClark
MintonWarrenHarlan
BrennanWhittakerStewartWhite
GoldbergFortas
MarshallBurger
BlackmunPowell
RehnquistStevensOConnor
ScaliaKennedySouter
ThomasGinsburgBreyerRoberts
AlitoSotomayor
Kagan
1953 1963 1973 1983 1993 2003 2013
����
����
����
����
����
9-0� Reverse
8-1, 7-2, 6-3 �5HYHUVH
19�� 19�� 19�� 19�� 19�� 20�� 20��
0.00
0.25
0.50
0.75
1.00
0.00
0.25
0.50
0.75
1.00
0.00
0.25
0.50
0.75
1.00
�-� �Reverse
0.00
0.25
0.50
0.75
1.00
0.00
0.25
0.50
0.75
1.00
0.00
0.25
0.50
0.75
1.00
�-� �$IILUP
8-1, 7-2, 6-3 �$IILUP
9-0� $IILUP
19�� 19�� 19�� 19�� 19�� 20�� 20��
algorithms
information necessary to undertake due dilligence or other regulatory exercises is
locked in an antiquated format (i.e. pdf, word, tif file)
“The living will is effectively a roadmap and simulation
of the largest possible series of transactions in a bank’s lifetime,
the type of analytical exercise that is common in electronic systems design
or software testing, but unprecedented in law.”
Ideal RRP is a ‘War Game’ whereby a SIFI demonstrates it is
robust to failure of various counterparties
horizontal integration of legal work product in the
broader corporate technology ecosystem represents a source of immediate value creation
“Watson [and related technologies] will catalyze better organization of legal information and legal data, forcing organizations to better manage their current data and delivering substantial returns from this information management step alone....”
for example - contracts should be born
(or processed) as computational to point straight into finance/acct
and other relevant IT systems
stored legal work
product
play “whack-a-mole”, reacting to problems by creating fear and
friction within organizations and the impression that there is a legal
disaster around every corner.
Mediocre Lawyers
design systems that balance risk and improve
transparency, helping clients correctly price risk internally
Great Lawyers
recently met with the general counsel of a large publicly traded
company who has reduced the legal expenditures of the company
by nearly 50% using the lean methodology over past decade
http://www.seyfarth.com/
dir_docs/publications/
LITDecJan2014LeanSixSigma.pdf
http://www.seyfarth.com/
dir_docs/publications/
LITDecJan2014LeanSixSigma.pdf
Step 1: SME Bronze Certification
Society of Manufacturing Engineers
Step 2: On Site Project
to be added to portfolio law firm in house public sector
What is A2J Author?
An online tool from Chicago-Kent & CALI to build graphical interfaces for low-income, self-represented individuals.
“Learn More” bubbles, definition pop-ups, audio, graphic and video capabilities.
A2J Author “just in time” Learning
Uses for A2J Author
DocumentAssembly
Online IntakeBenefitsEligibility Screen & Calculators
E-FilingTriage
Stand-AloneInfo Guides
Daniel Martin Katz, The MIT School of Law? A Perspective on Legal Education in the 21st Century, University of Illinois Law Review (2014)
Legal Technology Survey Entrepreneurial Lawyering
Quantitative Methods for Lawyers Predictive Analytics for Lawyers (Legal Analytics)
Electronic Discovery Litigation: Data, Theory & Practice
Design Thinking for Lawyers Legal Project Management Lean / Six Sigma for Lawyers
Business of Law /Economics of the Legal Profession
law + tech + design + delivery
ComputationalLegalStudies.com
BLOG
Daniel Martin Katz
@ computational
computationallegalstudies.com
lexpredict.com
danielmartinkatz.com