AI Native Firms Gain Foothold in Changing Legal Industry

Legal ethics attorney Trisha Rich and private equity attorney Joshua Porte were interviewed for a Law360 article analyzing the rise of "AI native" law firms, a new development in the legal industry sitting at the intersection of artificial intelligence (AI) and the pursuit of outside capital investment. These firms, still a niche in the profession, train AI tools and large language model (LLM) technology to perform repeatable steps such as initial contract drafting that are typically handled by lower-level associates; by utilizing AI agents, lawyers not only streamline workflows but also lower costs for clients, as work done by AI does not count toward billable hours.

Mr. Porte explained it this way: "The idea is that you can get a team of extremely well-heeled corporate lawyers and get in on the ground floor to construct and train the model, using their knowledge and expertise. [It's] not to replace their judgment, but it could certainly get to the point of being very useful."

Ms. Rich, who together with Mr. Porte is advising about 10 native AI firms preparing to launch, acknowledged the "really serious regulatory and ethics question[s]" that come with this phenomenon but contended it's still possible to conform to rules of professional conduct and lawyer ethics while exploring novel structures.

"There's money flowing in from private financing at the same time technology is changing what it means to practice law," Mr. Porte added. "The dominant theme is uncertainty in terms of what these trends mean for the practice of law."

READ: AI Native Firms Gain Foothold in Changing Legal Industry