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AI and the Future of Legal Practice: Insights From Legal Innovators California



At Legal Innovators California, we were joined by over 500 forward-thinking legal professionals excited about the future of the legal industry. One of the leading companies at the event was Paxton AI, which also sponsored the event.


Paxton AI is an integrated AI legal platform for legal research, drafting, and document review, used by tens of thousands of legal professionals every day. It has been recognized as one of the most disruptive new legal tech companies by ABA TechShow, ALM LegalWeek, and AWS.


Dr. Tanguy Chau is the CEO and co-founder of Paxton AI. Tanguy also joined our program as a speaker on our ‘Harnessing the Power of Generative AI in Legal Practice’ panel on Private Practice Day. Before founding Paxton.ai, Dr. Chau was a venture capitalist at Formation 8 and Mayfield Fund, investing in startups like Ironclad and CaseText. He co-founded and served as CTO of Sample6, later acquired by IEH, and worked at McKinsey & Co. Dr. Chau holds an Engineering M.S., Ph.D., and M.B.A. from MIT, where he also served on the Board of Trustees.


We sat down with Tanguy to hear about his experience at LIC and his thoughts on the future of the legal industry. Enjoy!


What was the most valuable insight or take away from LIC?


The most valuable insight from the Legal Innovators California (LIC) was the recognition of the evolving nature of AI in legal practice. It’s clear that AI is not just about automating tasks but truly transforming how we think about and execute legal processes. This shift from mere automation to genuine augmentation of legal services is pivotal. It’s not just about making existing processes faster, but about reimagining what’s possible in the legal field, thereby driving both innovation and efficiency.


Which session or speaker resonated with you the most, and why?


The panel on 'Harnessing the Power of Generative AI in Legal Practice' was particularly engaging for me. Although I was a speaker, the robust discussion around the 'build vs. buy' dilemma in legal tech really stood out. This debate is central to our approach at Paxton AI, where we recognize the benefits of in-house development for customization while also understanding the value of partnering with AI specialists to navigate the fast-evolving AI landscape. It was an insightful exchange that highlighted the importance of agility and staying well-informed in this dynamic field.


Was there a unique challenge or client perspective that was mentioned or a trend or practice that you weren’t aware of before that you would like to implement in your business?


It was enlightening to learn about the varied experiences of large legal organizations integrating AI into their operations. At the conference, it was evident that AI deployment varies significantly across different groups within a single organization, each with unique needs and challenges. This variability presents a unique opportunity for Paxton AI. By leveraging our AI technology, we can facilitate smoother deployment across these diverse groups, tailoring our solutions to meet their specific requirements. There is an importance of not only adapting our AI technologies to fit different internal group requirements but also the crucial role of partnerships. By working closely with our clients to understand their specific legal environments and operational needs, we can refine our AI solutions to ensure more effective adoption and integration.


What were the biggest challenges or pain points discussed during LIC? How do these challenges compare to those you face in your own work with clients?


One of the key challenges highlighted during the Legal Innovators Conference (LIC) involved managing client expectations about the capabilities and accuracy of AI technologies. This challenge is not unique to the conference setting but reflects a broader issue we often face at Paxton AI. The fast-paced evolution of AI technologies can lead to both excitement and skepticism, sometimes causing fatigue and disappointment when outcomes don't immediately meet expectations. At Paxton, we address these challenges by prioritizing transparency and engaging in proactive education with our clients. We aim to set realistic expectations and provide a pragmatic approach to the adoption and integration of AI, ensuring our clients understand both the potential and the limitations of current AI technologies.


What emerging trends do you believe will have the most significant impact on the industry in the next few years?


The most valuable insight from the Legal Innovators California (LIC) was the recognition of the evolving nature of AI in legal practice. It’s clear that AI is not just about automating tasks but truly transforming how we think about and execute legal processes. This shift from mere automation to genuine augmentation of legal services is pivotal. It’s not just about making existing processes faster, but I believe it's about reimagining what’s possible in the legal field.


 


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