ABA’s recent survey shows that although Legal AI is making good progress overall, still only 10% of law firms currently use AI. When we look at corporate legal departments, however, adoption is on a more positive trajectory (see Thompson Reuters report ‘Ready or not: artificial intelligence and corporate legal departments‘), at present only a fraction of the total market has been captured.

While historically slow tech adoption in the legal industry is a significant barrier to market penetration for Legal AI providers, other challenges around the resourcing and capabilities needed to initially deploy and train AI solutions have also slowed up-take beyond the early adopters.

So what is the solution?

One option is to pre-train your AI product so your clients do not need to, and while many AI companies have built out robust pre-trained products, it can be very hard to pre-train your product for every client eventuality. Additionally, clients themselves rarely have the resources, capability, or willingness to do any custom training. This leaves the AI company in a difficult position of having to provide significant implementation services which distract them from focusing on their core product and can slow down the sales process.

As a result, a number of Legal AI and Contract Management companies have started outsourcing implementation and custom AI training to external specialists, helping them to:

  • reduce barriers to entry for clients, enabling and shortening sales cycles
  • remain a product company with higher VC valuations, not a service provider
  • build on external subject matter expertise, broadening their product capabilities

Already working with leading AI partners, Cenza provides a range of managed services to LegalTech, RegTech, and FinTech companies. Here are a couple of examples of recent projects:


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About the Author: Andrew Jardine

Andrew provides advice to Cenza and their clients on how best to utilise legal services in conjunction with different legal technologies, achieving high quality and cost effective solutions. Andrew does this by leveraging his legal technology and strategy consulting experience gained during his time as an early stage employee at Kira Systems and while as a Consultant at Deloitte earlier in his career. In hisspare time Andrew publishes a legal technology podcast, “Legaltech Tapas”, helping people to stay informed about different legal softwares.