However, the use of AI in legal work is not without controversy. Concerns have been raised about the security of client data, the accuracy of AI-generated documents, and the potential for AI to invent or misinterpret information. Despite these concerns, a survey by LexisNexis found that 90% of legal executives anticipate their investment in generative AI will increase over the next five years. Gartner predicts that the legal tech market will be worth $50 billion by 2027, almost double its value in 2022.
Key takeaways:
- Supio, an AI platform for personal injury law, has emerged from stealth with a $25 million investment led by Sapphire Ventures. The platform uses generative AI to automate bulk data collection and aggregation for legal teams.
- The co-founders, Jerry Zhou and Kyle Lam, believe that the legal industry is due for technology innovation. Supio can generate demand letters and supporting documentation, and allows users to search the evidence through a chatbot-type interface.
- Despite the potential benefits, AI in legal tech is fraught with challenges. Concerns include the sensitive nature of legal disputes, the potential for AI to generate inaccurate or false information, and the reluctance of some legal professionals to use AI.
- Despite these challenges, Supio is currently working with around 30 personal injury and mass tort law firms and expects that number to reach 100 firms by the end of the year. The company's annual recurring revenue has surpassed $1 million, mostly from subscription fees based on case volume.