Trying to Stop a Waterfall: Capital, AI and the New Legal Market

Legal ethics attorney Trisha Rich joined an episode of The Future Is Bright Podcast to provide a midyear update on emerging trends in the legal industry. Together with Adams & Reese Partner Lucian Pera, Ms. Rich affirmed that momentum around management services organizations (MSOs) and alternative business structures (ABS) remains robust – "our practice has never been busier," she commented – and shifts in the regulatory environment have not stalled deals or investor interest. The two attorneys talked about law firm-MSO platforms as well as deals involving artificial intelligence (AI)-native law firms and technology-enabled legal service models, describing the increasing pace, scope and sophistication of transactions. They also focused on new state laws, including those in California and Illinois, that attempt to regulate MSO and ABS involvement and increase oversight of the legal profession. The episode additionally touched on insurance and malpractice coverage, the possibility of a large law firm entering the MSO space and best practices for pursuing investment opportunities and outside capital sources, where both Mr. Pera and Ms. Rich emphasized the importance of alignment for a successful partnership. They answered additional questions on the roles of business attorneys and investment bankers to vet deals and help move the process along as other lawyers counsel on ethics, compliance and proper structuring. The episode concluded with insights on other legal market trends such as the implications of AI in day-to-day practice and how firms use the financial resources gained through collaboration with MSOs.

Duration: 37:05