David C Donald Legal Education and Machine Lawyering

David C. Donald Legal Education and Machine Lawyering Centre for Financial Regulation and Economic Development 22 February 2018 These are personal remarks, only. The observations made in this presentation have not been endorsed and do not represent positions held by the Faculty of Law of The Chinese University of

What is machine lawyering? David C. Donald Will leave be granted by a Hong Kong court for a statutory derivative action? Place of No Business No in Hong Jurisdiction exists HK company? Yes Kong? Yes Plaintiff member of company? Serious question to be tried Action in the company’s interest? No Yes Member of associat ed company ? No Yes Standing to sue No Yes Leave granted 2

A quickly growing industry David C. Donald • According to Zack Abramowitz, “Legal Tech In 2018: Could This Be The Year That Biglaw Strikes Back? ” Above the Law (6 February 2018). • “Slaughter & May reportedly has an equity stake in Luminance, • Heretik has an investment from a firm in the Am Law 100 (you heard it here first), and • Doxly has an investment from Dentons’ Nextlaw Labs… • Allen & Overy and Mishcon de Reya are running legal tech accelerators and Orrick recently [set up] Orrick Labs. Holland & Knight has a robust innovation committee. ” • Could this be a generation in law that parallels the transformation of the great investment banks into stock corporations? That is, might the current generation of lawyers cash-out by making know-how infinitely transferable and liquid? 3

Automation and the educator’s response 1. Analysis of documents and images a. Prior to litigation b. Prior to a corporate transaction c. Intellectual property 2. Creation of documents a. Contracts b. Memoranda c. Smart contracts in blockchain 3. Preparation a. Accelerated understanding b. Beyond information c. Control over market shape David C. Donald

David C. Donald 1 AUTOMATING INFORMATION INPUT

E-discovery David C. Donald Relativity. One advertises it can: • Process up to one million documents per workspace, including images. • Process documents in English, French, German, and Chinese, Portuguese and Japanese. • Documents are coded according to various parameters, and then the data may be viewed in terms of the parameters in the documents. Activity examples from i-connect/xera advertisements: • Retrieve and review conceptually similar documents. • Identify differences in near duplicate and other similar documents. • Group and review emails by message threads and sort by inclusive emails to speed reviews. • Create precise review batches based on conceptual clusters, with the option to include near-dupe or email threads. 6

Contract analysis David C. Donald Luminance advertises: • Its service can “categorise, review and analyse thousands of documents at speeds no human can match. ” • It “uses a unique combination of supervised and unsupervised machine learning to find key information within thousands of contracts. Clauses, documents, currencies, locations, governing laws and more automatically tagged for faster navigation of documents, while anomaly detection highlights areas of potential risk. ” • It identifies “differences in structure and content” between contracts and attributes them “anomalies scores. ” • Its “data visualisation dashboard provides a global overview of any body of contracts, automatically identifying languages, currencies, locations, governing laws and more. ” • “It tags key clause types automatically, and learns from every project and contract it encounters, meaning that law firms can build up a custom clause bank with ease. ” 7

David C. Donald 2 AUTOMATING DOCUMENT CREATION

IBM’s ROSS • IBM advertises Ross as an “On-Demand Research. David C. Donald Associate” • “ROSS is an artificial intelligence (AI) system designed to improve the efficiency, accuracy, and profitability of legal research. • Firms using ROSS have reported a 30% reduction in research time and found 40% more relevant authorities, translating to an ROI of 177% to 545% off of core search alone. ” • “ROSS can pinpoint answers to substantive legal issues in Bankruptcy Law, Intellectual Property Law, and Labor and Employment Law across Federal and State courts and agencies, including published and unpublished case law. ” • It can provide a full memorandum on a point of law in minutes. • Its website offers it for US$350 per “seat” unlimited usage. 9

Litera Microsystems David C. Donald • “We all want our documents to be perfect, but in today’s world there simply isn’t enough time…. • “Firms are under increasing pressure from clients to reduce costs and improve turnaround time. • Legal departments are trying to reduce reliance on outside counsel. Our Document Assembly solutions enable both to generate high quality content quickly by streamlining the repetitious tasks involved with the creation of legal documents. ” • “Our document assembly solutions reduce the time taken to create a first draft by up to 85 percent. We help firms use their own precedents and clauses to create high-quality drafts faster, and more consistently, than ever before. ” 10

Mary O’Carroll, Legal Ops at Google on “knowledge management” David C. Donald • “That knowledge capital we value so much is mostly stored in the heads of our lawyers and the rest of it resides in email and other work product. Trying to capture and share that is challenging because lawyers work very autonomously and sharing and collaboration isn't currently part of their workflow. • It's an extra step that we're asking folks to take when there is no benefit to them. Think about it. . . we're essentially saying ‘Please pause what you're doing several times a day and tag and upload any useful or reusable advice or work product into a sharable repository. ’ • …so for example, email integration is a must. I think it's going to take AI to really solve this for us. Once you have the machines automating that, then we're golden : )” 11

David C. Donald 3 PREPARATION

Less information, more interaction David C. Donald • “The knowledge jobs will go, the wisdom jobs will stay. ” Ian Dodd, Premonition (judge in Case. Cruncher competition) • “As technology removes the document-heavy manual tasks, junior lawyers will spend more time alongside senior lawyers on client interaction, strategy and response than they might do currently –we need to reshape the entire training cycle to ensure they're ready for that responsibility at an earlier stage, and have both the legal and business skills required. ” Mark Rigotti, Herbert Smith Freehills 13

Legal education currently David C. Donald Ø Gives students the conceptual field of the law: 1. Topic by topic, students build the framework of legal concepts; 2. Transcending topics, students build the toolbox of analytical movements. Ø Asks students to apply the law: 1. Education will be case-based, even if in the simplified form of a text book; 2. Many courses use tutorials; 3. Examinations are usually problem-solving. Ø Create written documents: 1. All examinations are written; 2. Students will have to write at least one paper; 3. PCLL students draft legal documents. 14

How put students above automation? David C. Donald Ø The conceptual field is essential, can it be accelerated? 1. Civil Law manuals? 2. Could the analytical moves be abstracted, like philosophy? Ø Should legal application skills be accelerated? 1. Restricting materials to law (particularly cases) only? 2. Basing class meetings on tutorials, primarily? 3. Complex research projects, perhaps in groups? Ø Should students be more client-ready? 1. Increase demand for both English and Chinese? 2. Force students to write regularly? 3. Assess students on meeting skills regularly? 15

Thank you! David C. Donald FIN My webpage: http: //www. law. cuhk. edu. hk/people/donald-david-c. php My papers: http: //papers. ssrn. com/sol 3/cf_dev/Abs. By. Auth. cfm? per_id=334405 CFRED Machine Lawyering