As the legal industry experiences a rapid technological transformation, legal tech startups are facing a critical challenge: accessing up-to-date and relevant data to ensure their AI legal assistants deliver precise and accurate responses. Johan Wallquist, Head of AI at Blendow Group, a Swedish cornerstone of the legal sector, emphasizes that these essential data sets are usually not publicly available but are instead locked away in proprietary databases. We have seen several startups in Sweden realizing this a bit late, having to pivot or find workarounds, says Wallquist.
“Legal tech startups and law firms must realize that to harness the full potential of AI in the legal field, they need access to data that is updated almost by the hour,” Wallquist explains. “Without this level of data accuracy and relevance, AI legal assistants risk providing inaccurate or outdated information, which can have severe consequences in the legal context.”
The recent release of the AI legal assistant from Lexnova, a leading Swedish legal database and news agency, gives lawyers access to Lexnova’s vast repository of up-to-date legal information, enabling the AI tool to deliver more precise and reliable results to its users – in a fraction of the time.
Some startups have realized this, which the recent strategic partnership between Lexnova, and Leya, a Y Combinator-backed AI startup, clearly shows and underscores the importance of collaboration between data providers and legal tech innovators. In this way, Leya’s clients gets access to Lexnovas data through their tool – combining the value of the legal data and the agility of a tech startup.
A Harvard study focusing on the use of generative AI among knowledge workers further highlights the potential of AI in improving efficiency and work quality. The study’s findings are already pushing firms over the edge to start using AI, but it has to be done right. If done right, implementing generative AI, lawyers and attorneys can dramatically streamline their processes, thereby increasing outcome but also opening up new business model and pricing opportunities. Legal tech startups and law firms that fail to prioritize access to such data may find themselves at a significant disadvantage in the market.
While some startups may attempt to rely on publicly available data sources, Wallquist cautions that these are often insufficient for the level of precision required in legal applications. “Startups must recognize that investing in partnerships with trusted data providers is not just a competitive advantage, but a necessity for delivering accurate and reliable AI-powered legal solutions,” he adds.
As the legal industry continues to evolve, the success of legal tech startups will largely depend on their ability to secure access to up-to-date, relevant, and proprietary data. By forging strategic partnerships with established legal databases, these startups can unlock the full potential of AI in transforming legal work, ultimately benefiting both the industry and its clients.
Links to read more:
Press release Swedish: https://www.dagensjuridik.se/nyheter/blendow-lexnova-
presenterar-en-ny-ai-tjanst-legal-assistant/
Martin Hjorth: https://www.linkedin.com/in/hjorthmartin
Johan Wallquist: https://www.linkedin.com/in/johanwallquist
