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Law Firms and Cryptocurrencies

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In the past, we have looked at blockchain, the technology that underlies cryptocurrencies, and at how blockchain is relevant to law firms. In this article, we have a closer look at the relationship between law firms and cryptocurrencies. We explain what they are and explore the challenges regarding law firms and cryptocurrencies. We also look at the legal services law firms can offer.

What are cryptocurrencies?

Wikipedia defines a cryptocurrency as “a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.”

Cryptocurrencies are decentralized digital currencies. They use blockchain technology to secure transactions and control the creation of new units. Unlike traditional currencies issued by governments, cryptocurrencies operate on a peer-to-peer network. This allows users to transfer ownership of cryptographic units without the need for a trusted third party, such as a bank. Transactions made with cryptocurrencies are recorded on a public ledger called the blockchain, which ensures transparency and security.

The first and most well-known cryptocurrency is Bitcoin, launched in 2009. It paved the way for thousands of alternative cryptocurrencies, known as altcoins, each with unique features and purposes. The most used cryptocurrency is Ethereum. It is popular in the legal and commercial world because it is being used in smart contracts.

Wikipedia lists six conditions to qualify as a cryptocurrency:

  1. The system does not require a central authority; its state is maintained through distributed consensus.
  2. The system keeps an overview of cryptocurrency units and their ownership.
  3. The system defines whether new cryptocurrency units can be created. If new cryptocurrency units can be created, the system defines the circumstances of their origin and how to determine the ownership of these new units.
  4. Ownership of cryptocurrency units can be proved exclusively cryptographically.
  5. The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
  6. If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.

Challenges regarding law firms and cryptocurrencies

Law firms wanting to deal with cryptocurrencies face several challenges. These may apply to the law firms themselves as well as to their clients. Let us have a closer look.

A first challenge is regulatory uncertainty.  The legal and regulatory environment surrounding cryptocurrencies is quite intricate. Law firms can advise on compliance with securities, commodities, tax, anti-money laundering, and banking laws and regulations. The challenge is that the regulations for cryptocurrencies vary widely from one jurisdiction to another. In some countries, cryptocurrencies are embraced and regulated like any other financial asset, while in others, they face severe restrictions or outright bans. (Wikipedia provides an overview of the legality of cryptocurrencies in different countries and territories). On top of that, the legal landscape is also continually evolving. Law firms must therefore stay abreast of these shifting regulatory landscapes to provide accurate advice to their clients.

A second challenge has to do with compliance with anti-money laundering requirements. Cryptocurrencies are often associated with anonymity. This has raised concerns about their potential use in illegal activities such as money laundering and terrorism financing. Law firms must assist clients in navigating anti-money laundering requirements to ensure compliance with local and international laws.

Next, there are taxation Issues. The tax treatment of cryptocurrencies can be complex and varies significantly by jurisdiction. Law firms can help clients understand and comply with tax obligations, whether it involves capital gains tax, income tax, or value-added tax (VAT) on cryptocurrency transactions.

There also are Intellectual Property (IP) rights to consider. The blockchain technology has led to the creation of numerous innovations, many of which may be subject to intellectual property protection. Law firms play a crucial role in helping clients secure and enforce IP rights in the crypto space.

Another challenging area that is of specific interest for lawyers is dispute resolution. As with any financial asset, disputes can arise in the cryptocurrency space. These can be related, e.g., to transactions, smart contracts, or initial coin offerings (ICOs). Law firms must be equipped to handle these disputes, which may involve complex issues of jurisdiction, contract law, and technology.

Finally, there are ethical considerations. Law firms must comply with the ethical requirements of their bar associations. Specific rules may apply as to what is allowed and what isn’t.

Legal services regarding cryptocurrencies

With all the challenges listed above, it should come as no surprise that there are corresponding services lawyers can offer. Let’s have a closer look.

Law firms can provide compliance and regulatory advice to ensure that cryptocurrency-related activities comply with applicable laws. This includes advising on the compliance of tokens and coins with securities laws, exchange licensing, and the creation and management of smart contracts. Firms also assist with the formation of cryptocurrency-focused funds, reviewing fund offering materials, and advising on tax implications.

An obvious service law firms can offer is dispute resolution and litigation. This includes resolving disputes between customers and cryptocurrency exchanges, as well as issues like locked accounts and frozen assets. Law firms also handle litigation and fraud cases, including recovering stolen digital assets and addressing business and investment fraud. When disputes arise in the cryptocurrency space, law firms provide representation in court or through alternative dispute resolution mechanisms such as arbitration or mediation. They can also represent clients in investigations by various government agencies and provide defence in civil disputes.

Law firms can offer advisory services for innovators and investors. This can include advice on intellectual property protection, company formation, and tax planning. As mentioned above, they can also help with compliance with regulatory and licensing obligations and security and privacy reviews. For investors, law firms can develop tax-effective ownership structures and advise on the taxation of trading gains and income from activities like staking and lending.

Another area consists of specialized services for Digital Assets and Web3. Law firms are at the forefront of advising on new digital assets, cryptocurrencies, NFTs, and blockchain-based protocols. They work with venture capital and investment funds, tech companies, exchanges, and decentralized autonomous organizations (DAOs). This includes engaging with regulatory bodies worldwide to advocate for clients in the digital asset and Web3 ecosystem.

Whether it’s an ICO, a cryptocurrency exchange, or a blockchain-based startup, law firms can help structure transactions to ensure they comply with legal requirements.

A service that is quite commonly offered these days is drafting and reviewing contracts. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They are a cornerstone of blockchain technology. Law firms are instrumental in drafting and reviewing these contracts.

Law firms can also help facilitate technical integration. Law firms are increasingly using blockchain technology to enhance efficiency and verify transactions. The use of smart contracts is growing. Law firms can advise on their implementation and legal bindingness. Distributed ledger technologies (DLTs) offer potential cost and time savings, which makes them attractive for various legal applications.

Beyond compliance and transactions, law firms offer strategic advice to clients on how to navigate the rapidly evolving landscape of digital assets. This includes advising on risk management, investment strategies, and potential regulatory changes.

Law firms and cryptocurrencies: conclusion

Like many new technologies, cryptocurrencies come with a wide range of challenges and opportunities. Law firms that start focusing on cryptocurrencies can gain a competitive edge through specialization, thought leadership, cross-border work, and collaboration with Technology Experts.

 

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Legal IT

Has the metaverse failed?

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In November 2021, we did an article on what lawyers needed to know about the metaverse. Since then, the buzz around the metaverse has largely died. In this article, we start off with an overview of some of the predictions and expectations. Then we do a reality check. Next, we look in extenso at possible reasons why the metaverse failed. We conclude with some observations on how to move forward with a new vision of an immersive future.

Predictions and expectations

The concept of the metaverse really started drawing attention when Facebook Inc. changed its name to Meta in October 2021. The metaverse was seen as the inevitable evolution of the internet—a virtual space where the physical limitations of the real world did not apply. Proponents envisioned a realm where digital avatars would seamlessly transition between experiences, carrying their identities and assets with them. This digital utopia was expected to revolutionize how we interact with technology and each other, by offering unparalleled opportunities for connectivity and commerce.

Quite a few companies established a presence in the metaverse. Architects started designing virtual buildings, and real estate developers started developing and selling virtual real estate. There was talk of virtual cities, etc. The metaverse was predicted to be the big next thing, and its proponents urged everyone to get on board.

Reality Check

The reality of the metaverse, however, has been far less impressive. The metaverse has failed to live up to the excessive hype that built up in 2021 and early 2022, leading to a “metaverse winter” in 2023. This was mainly due to cooling interest, economic obstacles, and the immaturity of the required technologies. Despite the grand vision, the metaverse has faced significant challenges that have hindered its widespread adoption and development. We will have a closer look at those reasons below.

Financially, the metaverse has seen significant investment, with over $120 billion flowing into the sector in 2022 alone. McKinsey research had suggested that the metaverse could generate up to $5 trillion in value by 2030. However, these figures contrast with the current user experience, which clearly falls short of those expectations. The costs associated with developing metaverse platforms and the technological limitations have led to a gap between the envisioned economic boom and the actual value delivered to users. The metaverse has also been criticized for being a hype-fuelled fad, appealing mainly to gamers and celebrities, rather than the public at large.

By now, “peak metaverse is firmly in our rearview mirror. According to Google Trends, Facebook’s announcement of rebranding to Meta on October 21, 2021, was the catalyst for the upward trend in metaverse. Four short months later, we hit peak metaverse.” (Brian Christner). In other words, the hype lasted for four months only. “Far from being worth trillions of dollars, the metaverse turned out to be worth absolutely bupkus. It’s not even that the platform lagged behind expectations or was slow to become popular. There wasn’t anyone visiting the metaverse at all. The sheer scale of the hype inflation came to light in May [2023]. In the same article, Insider revealed that Decentraland, arguably the largest and most relevant metaverse platform, had only 38 active daily users.” (Brian Christner). Decentraland had invested 1,3 billion US dollars in the metaverse.

Reasons why the metaverse failed

Despite significant investments and extensive hype, the metaverse has faced numerous challenges that have hindered its widespread adoption and success. One of the main issues was – and is – the lack of a unified definition or understanding of what the metaverse actually is. While some early adopters can describe it clearly, many people still struggle to grasp its concept and purpose. Moreover, the technological infrastructure required to support a fully-realized metaverse is still in its infancy. Issues such as interoperability between platforms, user privacy, and the economic model are yet to be resolved.

Let us have a closer look at the reasons why the metaverse has failed thus far. The authors of the articles listed at the end of this article mention the following reasons for the metaverse’s shortcomings.

Overhyped and unmet expectations: the initial excitement surrounding the metaverse was immense, with many envisioning a revolutionary digital landscape. The bold promises from people like Zuckerberg set a high bar that current technology and market readiness could not meet. Many initiatives fell victim to massively inflated expectations, leading to expensive failures and a general sense of disillusionment. This decline in enthusiasm has been a significant factor in the metaverse’s inability to meet expectations. The metaverse’s close association with cryptocurrencies and NFTs, which have also faced their own set of challenges, further compounded these issues.

Immature technologies and tech limitations: the development of the metaverse relies heavily on technologies such as augmented reality (AR) and virtual reality (VR). However, these technologies are still immature and have not reached the level of sophistication required for a seamless metaverse experience. The lag in VR headset adoption, for instance, has been a significant barrier to the metaverse’s growth.

Bad user experience: the abovementioned technical difficulties also resulted in a subpar user experience. Early iterations of the retail metaverse, for example, were plagued by technical glitches and clunky interfaces. These issues have made it difficult for users to fully immerse themselves in the metaverse, leading to disappointment and frustration. Add to that, that many people think Zuckerberg’s version of the metaverse is goofy, with characters that look like Nintendo Wii characters. (“You want me to wear this uncomfortable headset to be able to see myself as a badly drawn cartoon character?”)

Limited User Engagement: because of the bad user experience, user engagement has been minimal. We mentioned the example above of Decentraland, which is one of the largest and most relevant metaverse platforms, only having 38 active daily users at one point. This stark reality highlights the gap between the envisioned metaverse and the actual user adoption and engagement.

High cost of entry: the metaverse may be too expensive for some people to access. You need a VR headset, a fast computer, an up to par broadband connection, etc. Add to that, that most platforms based on blockchain — like The Sandbox and Decentraland — require the exchange of cryptocurrency for full functionality.

Privacy and safety concerns: the metaverse raises significant privacy and safety concerns that have yet to be adequately addressed. The amount and type of data created and collected through metaverse technologies result in major privacy challenges. Ensuring the safety of users, particularly children, in these virtual environments is a complex issue that requires new approaches and regulations. And then there’s the cybercrime aspect: criminals could use voice recordings from metaverse platforms against someone, or behavioural data could be mismanaged and sold to interested parties.

Economic and ROI Challenges: from an economic perspective, the metaverse has struggled to demonstrate positive returns on investment (ROI). Meta’s Reality Labs, for example, recorded a loss of $3.73 billion in one quarter alone in 2023. Retail metaverse initiatives have also largely failed to deliver truly unique, must-have shopping experiences. This makes it difficult to justify the high costs associated with developing and maintaining these platforms.

Shifting Focus to AI: finally, there is the impact of AI. Even companies that heavily invested in the metaverse are now shifting their focus to other technologies. Meta, for instance, has turned its attention away from the metaverse to AI, which is seen as the next big thing. This shift indicates a broader industry trend away from the metaverse as a primary focus.

Moving forward with a new vision of an immersive future

In summary, the metaverse’s journey has been fraught with challenges, from technical and user experience issues to economic and privacy concerns. However, by tempering expectations and adopting a more realistic and focused approach, there is still hope for the metaverse to find its place in the digital landscape. Several authors believe there still is potential for its future development. A more modest, grounded, and niche-driven approach may be the key to its next chapter. Lighter-weight, frictionless AR shopping interfaces accessible from smartphones, for example, could sidestep VR’s adoption barriers and provide more practical applications.

The journey of the metaverse probably is not over yet, and with all the investments that have been made, it is likely that it will continue to evolve. The key to its success lies in addressing the current shortcomings and aligning expectations with reality. As the technology matures and more people become familiar with the concept, the metaverse may yet find its place as a significant part of our digital lives. It will require patience, innovation, and a clear vision to bridge the gap between what was promised and what can be realistically achieved.

 

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Legal IT

The Paperless Law Firm

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Some days ago, we went to a stationery store. We wanted to buy a writing pad with letter paper, to send some letters. We couldn’t find any. When asked about it, the shop manager said that they haven’t kept it in stock for some time. “People don’t send letters anymore; they text and share.” In other words, they have gone paperless. And that seems like a good opportunity to check out the state of the paperless law firm. We look at the following questions: What is a paperless law firm? What are the benefits? What are the challenges of becoming a paperless law firm? We conclude with some tips about best practices.

What is a paperless law firm?

The paperless law firm is an implementation of the idea of a paperless office. The Wikipedia defines a paperless office (or paper-free office) as “a work environment in which the use of paper is eliminated or greatly reduced. This is done by converting documents and other papers into digital form, a process known as digitization.” It adds that “Proponents claim that “going paperless” can save money, boost productivity, save space, make documentation and information sharing easier, keep personal information more secure, and help the environment. The concept can be extended to communications outside the office as well.”

The term of a “paperless office” has been around since 1978, but the idea of a paperless world was already launched in 1964 by IBM. Now, six decades later, the concept of a paperless law firm is no longer a futuristic idea. It’s a reality that many firms are already embracing.

An important factor in this evolution is that the technologies needed for a paperless office are now widely available. All relevant digital documents can easily be stored in the cloud. Scanners and OCR are found in virtually every law firm. Even smart phones have apps to scan documents, and optionally convert to text. And the software lawyers use to manage their firm, like Cicero LawPack, too is designed to be able to work like this. Artificial intelligence and machine learning have made it easier than before to manage digital documents.

So, more and more law firms are going paperless or greatly reduce their usage of paper. This transition to a paperless environment is driven by the need for efficiency, cost reduction, and a more sustainable business model. The pandemic and the need to be able to work from anywhere certainly has been a contributing factor as well.

What are the benefits?

The move towards a paperless law firm offers numerous advantages. The articles listed below mention:

  • Reduced costs: eliminating the need for printing, posting, and storing physical files can significantly cut costs. You hardly need any filing cabinets if your documents are stored in the cloud.
  • Improved organization: digital storage provides a centralized platform for all files, emails, and documents, enhancing organization and accessibility. This also means that the data become more accessible. Another benefit of this, is that you have a single source of truth.
  • Increased productivity: a DMS that is properly indexed and has a good search facility makes it far easier to have quick access to all the relevant information.
  • Enhanced collaboration: a paperless environment facilitates collaboration among team members and with clients.
  • Enhanced security and improved confidentiality: digital files can be more secure than physical ones, reducing the risk of loss or unauthorized access. Printed documents can be read by anybody with physical access, whereas the permission management of digitized documents can be very explicit in who has what access rights.
  • Guaranteed business continuity: digital systems ensure that business operations can continue uninterrupted in case of disasters.
  • Environmental benefits: going paperless contributes to environmental sustainability by reducing paper waste. It typically also results in a reduced carbon footprint.
  • Working with digitized documents also offers you greater control over compliance and deadlines because you can work with (intelligent) apps.

The challenges of becoming a paperless law firm

The transition to a paperless law firm does come with its own set of challenges. These are the most cited ones.

  • Initial time commitment: going paperless means converting documents that are only available in paper form into digital documents. This means thousands of documents must be digitized, which can be time consuming. Alternatively, you could temporarily hire extra people or outsource the process.
  • Difficulties digitizing existing paperwork: not all relevant paperwork comes in a standard paper size, which can bring its own challenges. Some law firms will also prefer to have both a scan as an image as well as a text version. While AI-driven OCR has made tremendous progress, it still means that all documents will have to be checked.
  • Transition costs and disruptions: the two challenges mentioned above make it clear that transitioning to a paperless office not only causes extra costs, but disruptions in the way the law firm is run. These initial costs and operational disruptions can be mitigated with careful planning and budgeting.
  • Security risks: in an era where cybercrime is on the rise and lawyers are a prime target, implementing robust cybersecurity measures against digital threats is imperative.
  • Compliance with regulations: ensuring that digital practices comply with legal industry standards and regulations is also crucial.

Best practices

These are some of the best practices to implement your transition to a paperless law firm.

First, identify and compare the necessary tools and technologies, like document management systems, e-signature solutions, and case management software.

Next, design your implementation strategies by planning the different steps of your paperless transition. Use a phased implementation. Recommended steps include digitizing existing documents, setting up central repositories for documents, and setting up digital workflows. Implement an electronic signature solution. Establish new processes for when you do use paper. Incentivize your paperless office strategy. Also pay attention to your client relations and notify them of the transition. Finally, staff training is also of the utmost importance.

While designing your implementation strategy, focus on security and compliance. Ensure your data security and client confidentiality in a paperless environment. Make a checklist to make sure you comply with legal and regulatory requirements (e.g., GDPR).

All of these will help make your transition smoother.

 

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Legal IT

Two free Microsoft apps to increase your productivity

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In this article, we look at two free Microsoft apps to increase your productivity, the Microsoft Forms and the Bookings apps. We answer the following questions: What is the Forms app? What are the benefits of the Forms app? What is the Bookings app? And what are the benefits of the Bookings app? (Note: this article was written upon request).

Increase your productivity with the Forms app

The first app we have a look at is the forms app, which officially is called Microsoft Forms.

What is the Forms app?

The Wikipedia gives the following definition: “Microsoft Forms (formerly Office 365 Forms) is an online survey creator, part of Office 365. Released by Microsoft in June 2016, Forms allows users to create surveys and quizzes with automatic marking. The data can be exported to Microsoft Excel and viewed live using the Present feature.”

Microsoft itself describes it as “a simple and powerful app that lets you easily create surveys, quizzes, and polls. With its intuitive interface, you can quickly design and share your forms with others, track responses in real-time and make data-driven decisions. Whether you’re conducting market research, gathering customer feedback, or testing student progress, Microsoft Forms makes it easy to get the insights you need to make informed decisions.”

Microsoft Forms provides a range of features to create interactive forms. Users can customize the background image, add pictures to questions, create sections, and use branching logic. It also offers real-time analytics to evaluate responses and integrates with other Microsoft 365 applications like Excel, SharePoint, and Teams. The app provides free templates and exclusive themes. It allows you to sync the results of your surveys and analyse the responses seamlessly in Excel.

Microsoft Forms is generally available to Office 365 Education customers, Microsoft 365 Apps for business customers, and users with a Microsoft account (Hotmail, Live, or Outlook.com). It is an optional and free app. Forms exists in an app version, which can be downloaded through the Microsoft Store, as well as in an online version, which can be found at https://forms.office.com. In essence, it is Microsoft’s competitor for Google Forms and Jotform.

As a lawyer, you could use the app, e.g., to do surveys among your clients, but also for things like client intake.

What are the benefits of the Forms app?

Microsoft Forms is a powerful tool that simplifies data collection and feedback gathering, with many benefits.

Integration with Microsoft 365: Microsoft Forms can be seamlessly integrated with other Microsoft 365 products. Users can insert quizzes, surveys, polls, and other types of forms into applications like OneNote, Excel, SharePoint, and Teams. This is probably the most important benefit, as it means that it integrates with the products and services your clients use and are familiar with.

Customization: Microsoft Forms offers customization options to create visually appealing forms. Users can choose from professionally designed templates or create their own themes. It also supports multilingual forms and provides powerful data visualization tools. Add themes, images, and videos to align forms with your law firm’s identity.

Real-time Responses: Visualize data as responses come in, with automatic charts and graphs.

Collaboration and Sharing: Share forms via links, embed them on websites, and collaborate with others.

Security and Privacy: Forms adheres to strict standards, allowing control over form access and anonymous responses.

Simple Creation Interface: You can create forms without any coding or design skills. Choose from templates or start from scratch.

Variety of Question Types: Forms supports multiple-choice, text entry, ratings, and more.

Logic and Branching: Customize the survey experience by directing respondents based on their previous answers.

Increase your productivity with the Bookings app

The second app we have a look at is the Bookings app.

What is the Bookings app?

The Wikipedia describes the Microsoft Bookings app as “a scheduling tool and is part of the Microsoft Office family of products. Released by Microsoft in March 2017, Bookings allows customers of small businesses and companies to book appointments with the company.”

In other words, Microsoft’s Bookings app is a scheduling tool that allows organizations to manage appointments and bookings with their customers. It is integrated with Microsoft Teams.

You can have one or more booking calendars. Scheduling bookings is easy and flexible. Attendees can join a booking, with or without a Teams account.

To add the Bookings app to Teams, users can go to the Apps section and search for Bookings. Once added, users can set up their booking calendar and customize the app according to their business needs.

Bookings is available with various subscriptions, including Office 365 and Microsoft 365 plans. It is not available as a standalone app and requires Outlook Web App or Outlook on the web to be enabled. All users of the Bookings app and staff participating in meetings must have a license that supports Teams meeting scheduling.

What are the benefits of the Bookings app?

The Bookings app offers the following benefits.

Integration with Microsoft Teams and Microsoft 365: The virtual appointments scheduled through the Bookings app are held via Microsoft Teams Meetings. This integration allows for seamless communication and collaboration during appointments. Appointments that are registered in Teams can automatically be added to your Outlook Calendar. Most importantly, because of this integration, it also integrates with the products and services your clients use and are familiar with. In other words, your clients can set up a meeting with you through an interface that they are familiar with.

Flexible and customizable: Bookings can be customized to fit the needs of your law firm. It offers built-in flexibility and the ability to customize appointment details, booking requirements, and service providers. This allows you to tailor the app to your specific requirements.

Features and functionality: Bookings simplifies the process of scheduling and managing appointments. It includes a web-based booking calendar that syncs with Outlook to optimize availability. The app also supports automated notification emails and reminders to reduce no-shows and enhance customer satisfaction. Additionally, Bookings integrates with Microsoft Teams to support virtual appointments via online meetings.

Conclusion

Forms and bookings are two free apps that function as add-ons to Microsoft Teams and Microsoft 365. They are easy to use and make doing things like taking surveys and booking appointments easy. An additional benefit is that these are both Microsoft apps, which means your clients do not have to familiarize themselves with yet another platform. Instead, they can interact with you in a familiar environment.

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Legal IT

An introduction to AI computers for lawyers

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AI Computers are being called the biggest development in the PC industry in 25 years. Experts believe they could also trigger a refresh cycle in the PC-industry. In this article, we will answer the following questions. What are AI computers? What are the benefits of AI computers, and what are the benefits for lawyers? Do you, as a lawyer need to get yourself one? What are the challenges and limitations for legal work?

What are AI computers?

So, what are AI computers? The term was launched by Intel. They describe it as follows: an AI PC has a CPU, a GPU and an NPU, each with specific AI acceleration capabilities. An NPU, or neural processing unit, is a specialized accelerator that handles artificial intelligence (AI) and machine learning (ML) tasks right on your PC instead of sending data to be processed in the cloud. The GPU and CPU can also process these workloads, but the NPU is especially good at low-power AI calculations. The AI PC represents a fundamental shift in how our computers operate. It is not a solution for a problem that didn’t exist before. Instead, it promises to be a huge improvement for everyday PC usages.

In other words, AI PCs are regular personal computers that are supercharged with specialized hardware and software. These are specifically designed to handle tasks involving artificial intelligence and machine learning. When it comes to the hardware, what stands out is the presence of an NPU, i.e., a Neural Processing Unit. Its job is to accelerate AI workloads, particularly those that require real-time processing, like voice recognition, image processing, and deep learning applications.

AI PCs also run specialized software stacks, frameworks, and libraries tailored for Artificial intelligence and Machine Learning workloads. “The distinction between AI software and ‘normal’ software lies in how each type of application processes the work you ask it to do. A conventional application just provides pre-defined tools not unlike the specialty tools in a toolbox: you must learn the best way to use those tools, and you need personal experience in using them to be effective on the project at hand. It’s all up to you, every step of the way. In contrast, AI software can learn, make decisions, and tackle complex creative tasks in the same way a human might. That learning capability gives you a new kind of tool that can simply do the job for you at your request, because it has been trained to do so. This fundamental difference enables AI software to automate complex tasks, offer personalized experiences, and process vast amounts of data efficiently, transforming how we interact with our computers.”

Benefits of AI computers

Why were AI computers created in the first place? Generative AI has become extremely popular. But it puts high workloads on the cloud servers AI is using. The idea is to share that workload with the PCs of the users. And for that, you need to have powerful PCs with the necessary hardware and software. In short, AI computers are beneficial for the users, as well as for the manufacturers and AI service providers.

Benefits for users

Experts have identified many potential benefits for the users. AI PCs can boost productivity, enhance creativity, and improve user experience. Below are some of the key advantages the literature mentions, in random order.

Enhanced and accelerated performance for AI Tasks: AI PCs are equipped with hardware specifically designed to tackle demanding AI applications. This translates to faster processing of complex calculations and data analysis, crucial for tasks like video editing, scientific simulations, and training AI models. This acceleration can significantly speed up the training and inference of deep learning models. And other applications like video conferencing, e.g., can also greatly benefit from this enhanced performance.

Improved efficiency and automation: AI features can automate repetitive tasks, freeing you up for more strategic work. Imagine software that automatically categorizes your files or optimizes battery life based on usage patterns.

Improved power efficiency: AI accelerators like TPUs are designed to be power-efficient, consuming less energy while delivering high performance. Laptop batteries, e.g., will last longer before needing recharging. AI PCs can lead to lower operating costs and a smaller environmental footprint.

Personalized User Experience: AI can learn your preferences and adjust settings accordingly. Brightness, keyboard responsiveness, and even video call framing could adapt to your needs, creating a more comfortable and efficient work environment.

Boosted Creativity: some AI PCs come with built-in creative tools that can generate ideas, translate languages, or even write different creative text formats based on your prompts. This can be a game-changer for designers, writers, and anyone looking for a spark of inspiration.

Enhanced Security: AI-powered security features can constantly monitor for threats and potential breaches, offering an extra layer of protection for your data.

Benefits for chip manufacturers and for service providers

The new AI computers do not only benefit the users. As mentioned before, having part of the workload done on the users’ side, also considerably reduces the workload on the servers of the AI service providers. One expert even estimates that, “By end of 2025, 75% of enterprise-managed data will be processed outside the data centre.” So, service provides will have to invest less in infrastructure.

At the same time, AI PCs can be useful in the data centre, too. Two important benefits they offer are scalability and a faster time-to-market. Many AI PCs support multiple AI accelerators, allowing for scaling up the computational power by adding more accelerators as needed. This scalability enables handling larger and more complex AI models and workloads. The accelerated performance of AI PCs can also significantly reduce the time required for training AI models, enabling faster iteration and deployment cycles for AI applications and solutions.

The introduction of a new type of personal computers is of course also good news for the manufacturers, as it creates a new – and booming – market. It should not come as a surprise then, that all major chip manufacturers like Intel, Nvidia, AMD, and Qualcomm have started making NPU chips. Apple, too, has announced new chips that are AI optimized. It is safe to assume that soon all new PCs, laptops, and tablets will be AI computers.

Benefits for lawyers

All of this then begs the questions, do you, as a lawyer, need one? Well, apart from the abovementioned benefits, AI computers can offer lawyers specific benefits, too. They can, e.g., significantly enhance the efficiency of legal practices by automating routine tasks such as document review, legal research, eDiscovery, and contract analysis. Experts anticipate the following benefits.

Improved Legal Research: AI can analyse vast amounts of legal documents, regulations, precedents, and case law, helping lawyers identify relevant precedents and arguments much faster. This can save significant time and effort compared to traditional research methods.

Contract analysis and enhanced due diligence: AI can sift through contracts and financial records, highlighting potential risks and areas requiring closer scrutiny during due diligence processes. This typically can be a time-consuming task for lawyers, where AI can do it very fast. Add to that that it can improve the accuracy and efficiency of legal reviews.

Legal document analysis, review, and drafting assistance: AI-powered tools can help lawyers draft legal documents by suggesting language, identifying inconsistencies, and ensuring compliance with regulations. AI models can also be trained to analyse and extract relevant information from large volumes of legal documents, contracts, and case files. The computational power of AI PCs can speed up this process significantly.

Predictive analytics: with the help of AI PCs, lawyers can develop predictive models to analyse the potential outcomes of legal cases based on historical data and various factors.

Natural language processing (NLP): AI PCs can be used to train and deploy NLP models for tasks like legal document summarization, information extraction, and sentiment analysis.

Challenges and limitations for legal work

At present, however, AI computers are still facing some challenges and limitations when it comes to legal work. While AI PCs can provide computational advantages, many legal applications may not require the full power of these specialized systems. For routine legal work, such as drafting documents or conducting basic research, regular desktop or laptop computers might suffice.

AI computers still have limited judgment and creativity. The core tasks of lawyers often involve legal reasoning, strategy, and creative problem-solving, areas where AI is still not very advanced. AI PCs can’t replace a lawyer’s ability to analyse complex situations, develop persuasive arguments, or adapt to unexpected circumstances in court.

There also is the issue of data dependence and accuracy: the effectiveness of AI tools heavily relies on the quality and completeness of the data they’re trained on. Legal data can be complex and nuanced, and errors in the data can lead to inaccurate or misleading results.

The benefits may not justify the higher costs. AI PCs can be significantly more expensive than traditional PCs. For lawyers who don’t handle a high volume of complex legal matters that heavily rely on AI-powered research or due diligence, the cost may therefore not be justified.

CONCLUSION

AI PCs can be a valuable tool for lawyers, especially for tasks like legal research and due diligence. However, they shouldn’t be seen as a replacement for human lawyers. AI is best used to augment a lawyer’s skills and expertise, not replace them. And at present, AI computers may be overkill when it comes to day-to-day legal work, where existing computers can handle the workload and the extra cost of an AI pc is not justified.

It is also important to consider that the technology used in AI computers is a new and evolving tech. AI PCs are a relatively new concept, and the functionalities are still under development. The “killer application” that justifies the potentially higher cost might not be here yet. Add to that, that to fully benefit from AI features, you’ll need compatible software that can leverage the AI capabilities of your PC.

The decision to invest in AI PCs for legal work would depend on factors such as the specific use cases, the volume of data or workload, the complexity of the AI models required, and the potential return on investment. Law firms or legal departments with a significant focus on AI-driven legal technologies may find AI PCs more beneficial than those with more traditional workflows. But for many lawyers, a traditional PC with good legal research software might still be the most practical solution.

 

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Legal IT

The dangers of social media

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In this article, we look at the dangers of social media for mental health, at the legal and criminal dangers of social media, and at the risks posed by misinformation, disinformation, and propaganda.

People love social media. They allow us to stay in touch with family, friends, and acquaintances. They also allow us to interact with suppliers and customers. Lawyers, too, can use social media professionally. (See our past articles on social media for lawyers, on why they matter for lawyers, on how they can be great marketing tools, and on how they can be used for legal research). And let’s admit it, social media can be fun. It is no surprise then that a “typical” internet user spends almost 2½ hours each day using social media platforms. This equates to more than one-third of our total online time. But there also is an often-overlooked dark side to social media, and that is what this article is about.

The dangers of social media for mental health

We all have encountered stories of people taking their lives after being bullied on social media. This is one of the main dangers of social media: it can trigger or worsen mental health problems, such as anxiety, stress, depression, and loneliness. Studies have shown that excessive social media use can also increase feelings of emotional exhaustion, envy, low self-esteem, and dissatisfaction with life: the constant exposure to carefully curated, idealized versions of people’s lives, e.g., can lead to feelings of inadequacy and low self-esteem. People can get addicted to social media. They can expose users to harmful content. Cyberbullying and online harassment are also common on social media platforms. All the above can have severe psychological effects.

Let us have a closer look at some of these in more detail.

One of the most serious dangers of social media is cyberbullying and the accompanying harassment. Cyberbullying can include sending mean messages, posting embarrassing photos or videos, or spreading rumours online. Harassment can range from mean comments to threats and doxing (revealing personal information).

Social media platforms are designed to be addictive. The endless scroll and notifications trigger dopamine releases in the brain, making it easy for users to become addicted and spend excessive amounts of time on these platforms. People who are addicted to social media spend hours each day checking their feeds, and they may experience withdrawal symptoms when they are unable to use social media. This social media addiction affects real-life relationships, work, school, and other responsibilities. Social media addiction is a growing problem.

Social media can also expose users to harmful content, such as violence, hate speech, and sexual content. This content can be particularly damaging to children and adolescents, who may be more vulnerable to its effects.

Social media encourages people to compare their lives, achievements, and appearances to others, leading to a phenomenon known as “comparative stress.” This can negatively impact self-esteem and mental well-being.

Excessive use of social media can lead to reduced face-to-face interactions. These face-to-face interactions are essential for building and maintaining meaningful relationships. A lack of these interactions can contribute to feelings of isolation and loneliness.

Social media also have an impact on youth development. Children and adolescents are particularly vulnerable to the dangers of social media. Several of the items mentioned above can affect their self-esteem, body image, and overall development. It can also expose them to age-inappropriate content and online predators.

Legal and criminal dangers of social media

There are several legal, even criminal, issues as well when it comes to social media. Think of privacy concerns or cybercrime (e.g., identity theft, phishing, and hacking). Let us have a look at the most relevant legal dangers social media can pose.

A first group of concerns has to do with privacy and the protection of personal data. Many social media platforms collect vast amounts of user data. These can then be used for targeted advertising (see below) but may also leave users vulnerable to data breaches (see below). Users often share personal information without fully understanding the implications: when you share information on social media, it is accessible to anyone who can view your profile. This typically includes your personal information, such as your address, phone number, and email address, as well as your photos and videos. Even location-sharing features can compromise user privacy. All this information can be used by scammers, identity thieves, and other malicious actors. Clearly, social media platforms are not doing enough to obtain clear and informed consent from users regarding data collection and usage.

Identity theft is another danger of social media. Identity thieves use the information you share online to steal your identity and commit fraud in your name. They may also use your information to create fake social media profiles or send phishing emails. In these phishing attacks, cybercriminals trick users into revealing personal information, which then can lead to (more) identity theft. There also is a risk involved in using third-party apps: users often grant access to these applications without fully understanding the risks.

Social media platforms can also leave us vulnerable to cyberattacks and hacking attempts. The EU faces a surge in cyber-attacks, targeting critical infrastructure, institutions, and businesses. Most of these are ransomware attacks, i.e., demanding ransoms for stolen data. But cyberattacks and hacking attempts can also be used to disrupt the functioning of democratic institutions, political campaigns, and even electoral systems. Such attacks can have serious consequences for the integrity of elections and democratic processes. (See below).

Finally, there are the anonymity challenges which undermine accountability and legal liability. The anonymity and lack of transparency on social media often make it difficult to hold those who engage in criminal, harmful or unethical behaviour accountable.

The risks posed by misinformation, disinformation, and propaganda

Lawyers have been called the guardians of the rule of law and of democracy. We have reached a point where the amounts of misinformation, disinformation and propaganda that are being spread on social media even poses a risk to the rule of law, of democracy and the political process.

Let us start with the spread of misinformation, disinformation (=deliberate), and misleading information. Social media are a powerful tool for the rapid spread of misinformation, fake news, and conspiracy theories. There are many examples of how false or misleading information can go viral quickly, and of how it can be difficult to distinguish between fact and fiction. And the false information often spreads faster than fact-checking can keep up. Given the circumstances, this can lead to real-world consequences, such as public health crises or political instability. The rapid spread of false and misleading information can also distort public understanding of critical issues, including elections. (See below).

Because of the algorithms that they use, social media can lead to filter bubbles and echo chambers. Social media algorithms are designed to show users content that aligns with their existing beliefs and preferences. This creates so-called echo chambers, where people are exposed only to information that reinforces their views. This can result in polarization, intolerance, and a lack of understanding between different groups. It also can hinder productive political discourse.

It should come as no surprise then that social media have been used as a tool for political manipulation. This can be done by individuals, organizations, or by foreign actors to influence public opinion. Tactics include fake accounts, bots, and coordinated disinformation campaigns. All of these can be used to amplify certain narratives and divisive political rhetoric, sway public sentiment, and undermine the integrity of democratic processes, including elections. There are plenty of documented examples where social media have been used to influence voter behaviour by exposing individuals to biased or misleading information. (Cf., e.g., the NYT article in the sources).

Social media platforms allow for highly targeted advertising. This can be used to influence specific demographic groups with tailored messages. While this can be a legitimate advertising practice, it can also be exploited to spread political propaganda and manipulate voter behaviour.

All the above contributes to an ongoing political polarization. Social media intensify political polarization by amplifying extreme viewpoints and creating an environment where moderate or compromise positions are less visible and less appealing to users. Such polarization makes it harder for democracies to function.

As a result of all of this, social media can erode public trust in traditional media, institutions, and even the democratic process itself. When people lose trust in credible sources of information, they may become more susceptible to manipulation. They also become less likely to participate in democratic activities like voting.

Conclusion

Social media are great but pose some serious risks as well. Considering all the above, there is a growing demand for regulation and for a legal framework. But that comes with its own legal challenges. Many countries guarantee a constitutional right of free speech. So, any regulation attempts will have to find a balance between freedom of speech and its limitations. And there is the ongoing debate whether the social media service providers are publishers or merely ITC platform providers. The social media service providers argue that the users are the publishers and that they, i.e. the service providers, only offer a platform.

 

 

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Legal IT

How lawyers communicate with clients

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In this article we look at how lawyers communicate with clients. We start off with how lawyers communicate with clients using traditional means like phone, mail, and fax. Then we look at more modern electronic ways of communicating like email, client portals, and document sharing.

How lawyers communicate with clients using traditional means

In the past, lawyers mainly communicated with clients using phone, fax, and traditional mail. These days, they still do, but the traditional means have clearly taken a backseat. Interestingly, there are hardly any recent statistics available on how many lawyers still use phone, fax, and traditional mail. Of the three, phone calls still appear the most popular.

Phone

Lawyers still call their clients, and they call each other. One thing that does stand out is that their clients clearly would prefer to get more phone calls. One of the few available statistics is that clients greatly prefer human-to-human interactions like phone calls (62%) when dealing with issues. Instead, what they receive are largely automated emails.

And there is something to be said about relying on phone calls more often. It is usually much easier to talk about complicated matters over the phone than it is through email. It’s also a better way to build rapport with your clients. And often, it’s just easier to have a casual conversation on the phone than through email.

Traditional mail

For a long time, regular mail was the traditional way of sending and receiving documents, letters, and notices. It is still used by some lawyers and clients who prefer a physical copy of their correspondence or who need to comply with certain legal requirements.

But regular mail has clearly lost much of its appeal. This largely has to do with some of its inherent disadvantages. It is slow and unreliable compared to other methods. It can be lost, damaged, or intercepted by unauthorized parties. There typically also are additional costs for postage and printing. And, finally, it can create clutter and wastepaper.

According to a survey conducted by the American Bar Association in 2020, only 9% of lawyers reported using regular mail as their primary method of communication with their clients, while 75% reported using email as their primary method.

Fax

Fax is another traditional way of transmitting documents electronically. It, too, has lost much of its popularity because if its limitations. It requires a fax machine or service that may not be always available or accessible. It can be expensive due to phone charges or subscription fees. Faxes can be low-quality or illegible due to poor resolution or transmission errors. They can be insecure or untraceable due to lack of encryption or confirmation.

According to the same survey by the American Bar Association in 2020, only 4% of lawyers reported using fax as their primary method of communication with their clients.

 

Electronic Communications

Email

These days, email is king. It is the most common way of communicating with clients. It is fast, convenient, and cost-effective. It allows lawyers to send and receive documents, attachments, and messages at any time and from any device. It also enables lawyers to keep a record of their communication history and to organize their inbox using folders and labels.

As mentioned above, in 2020, it was the preferred way of communication of 75% of lawyers. The same survey revealed that 92% of lawyers reported that they had sent confidential or privileged communications/documents via email. Additionally, nearly half of those lawyers (49%) shared that they did so at least once every day. Also worth noting is that 25% of clients prefer emails as the initial method of outreach.

However, email has its own drawbacks. It can be hacked, spoofed, or infected by malware or viruses. It can be misinterpreted or misunderstood due to lack of tone or context. It can be ignored or overlooked due to spam filters or information overload. It can create legal risks if not used properly or securely. It is why that American Bar Association recommended using client portals and/or sharing of documents instead, as they are more secure.

Client portals

Client portals are secure online platforms that allow lawyers and clients to communicate and collaborate on their cases. They offer several benefits over email and fax. They provide a centralized and organized place for storing and accessing documents, messages, calendars, tasks, invoices, and payments. They allow real-time updates and notifications on the status and progress of the case. They enable interactive features such as chat rooms, forums, polls, surveys, or feedback forms. They often allow to generate documents automatically, collecting the necessary data that are available in the portal. They enhance security and privacy by using encryption, authentication, and authorization.

Client portals may have compatibility issues with other software or systems that lawyers or clients use. There may also be legal implications such as ownership, liability, or jurisdiction. Lawyers are therefore recommended to choose a reliable and reputable client portal provider that meets their needs and expectations. They should also educate and train their clients on how to use the portal effectively and efficiently.

Document Sharing

Client portals typically allow document sharing within the portals. But it is also possible to share document without the need for a dedicated legal client portal. These days, cloud technologies allow for the safe sharing of documents. It involves using online tools such as Google Docs, Microsoft SharePoint, or Dropbox Paper that allow multiple users to view, edit, or comment on the same document simultaneously or asynchronously. In a previous article, we explained how Syntex offers exciting new opportunities. So, it is yet another way of communicating and collaborating with clients.

Like client portals, document sharing allows real-time or near-real-time feedback and revisions on the document. It eliminates the need for sending multiple versions or attachments of the document. It preserves the history and track changes of the document. It facilitates teamwork and brainstorming on the document. It is a secure and reliable way to share information between lawyers and their clients. And for those reasons alone already, it is to be preferred over email.

To reap the greatest benefits of document sharing, lawyers should follow some guidelines when sharing documents with comments. They should use clear and constructive comments that are relevant and respectful. Use different colours or symbols to distinguish between different types of comments, such as questions, suggestions, corrections, or approvals. Make sure to acknowledge or address comments. Use lock or protect functions to prevent unauthorized or accidental changes to the document. Finally, use share or invite functions to control who can access or edit the document.

Conclusion

The ways lawyers communicate with their clients has changed dramatically over the last decades. Electronic ways of communicating have clearly taken over. And email has become the predominant way of communicating. But because of its inherent insecurity, client portals and document sharing should be given preference.

 

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Legal IT

Microsoft SharePoint Syntex

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In this blog post, we will explore Microsoft SharePoint Syntex. We focus on the following questions: What is Microsoft SharePoint Syntex? What can it do? Is Microsoft SharePoint Syntex already available? What are the benefits of Microsoft SharePoint Syntex? And what are the benefits for lawyers?

In the last year, generative AI has been making headlines. (See, e.g., our articles on ChatGPT for lawyers, on Generative AI, and on the dangers of AI). Many software companies have started integrating generative AI into their products and services. Microsoft is no exception. Two of their new generative AI services stand out: CoPilot and SharePoint Syntex. This article is about SharePoint Syntex. Our next article will be about CoPilot.

What is Microsoft SharePoint Syntex?

So, what is Microsoft’s SharePoint Syntex? It is a new product that uses advanced AI and machine teaching to help you capture, manage, and reuse your content more effectively. As the name suggests, it is in essence an add-on feature for SharePoint. (Our blog also has an article on using SharePoint in law firms). Once it is installed, it can be used in some other programs as well. (See below).

Microsoft describes SharePoint Syntex as a content understanding, processing, and compliance service. It uses intelligent document processing, content artificial intelligence (AI), and advanced machine learning. This allows it to automatically and thoughtfully find, organize, and classify documents in your SharePoint libraries, Microsoft Teams, OneDrive for Business, and Exchange. With Syntex, you can automate your content-based processes—capturing the information in your law firm’s documents and transforming that information into working knowledge.

Syntex is the first product from Project Cortex. That is a Microsoft 365 initiative that aims to empower people with knowledge and expertise in the apps they use every day.

What can it do?

Microsoft Syntex offers several services and features to help you enhance the value of your content, build content-centric apps, and manage content at scale. Some of the main services and features are:

Content assembly: You can automatically generate standard repetitive business documents, such as contracts, statements of work, service agreements, letters of consent, and correspondence. You can do all these tasks quicker, more consistently, and with fewer errors in Syntex. You create modern templates based on the documents you use most. You then use those templates to automatically generate new documents using SharePoint lists or user entries as a data source.

Prebuilt document processing: You can use a prebuilt model to save time processing and extracting information from contracts, invoices, or receipts. Prebuilt models are pretrained to recognize common documents and the structured information in the documents. Instead of having to create a new document processing model from scratch, you can use a prebuilt model to jumpstart your document project.

Structured and freeform document processing: You can use a structured model to automatically identify field and table values. It works best for structured or semi-structured documents, such as forms and invoices. You can use a freeform model to automatically extract information from unstructured and freeform documents, such as letters and contracts where the information can appear anywhere in the document. Both structured and freeform models use Microsoft Power Apps AI Builder to create and train models within Syntex.

Content AI: You can understand and gather content with AI-powered summarization, translation, auto-assembly, and annotations incorporated into Microsoft 365 and Teams.

Content apps: You can extend and develop content apps with high-volume containers, data, and rich APIs.

Content management: You can analyse and protect content through its lifecycle with AI powered security and compliance, backup/restore and advanced content management.

Is Microsoft SharePoint Syntex already available?

SharePoint Syntex was released on 1 October 2023, and is available in all countries where Microsoft 365 is offered. So, if you are a CICERO LawPack user, you can start using it already. But note that there are some differences in the availability of languages and pricing for SharePoint Syntex in Europe.

SharePoint Syntex supports 21 languages for document understanding models and 63 languages for form processing models. (The article in the Microsoft Tech Community on the availability, which is listed in the sources below, has the full list of supported languages). All languages in which Microsoft 365 is available in Europe are available for Syntex within Europe. This does not mean, however, that all languages are available in all regions. For example, some languages are only available in the US region, such as Arabic, Hebrew, Hindi, Thai, and Vietnamese.

The pricing of SharePoint Syntex depends on the type of licensing and the number of transactions, as well as on the region and currency. There are two options for licensing: per-user and pay-as-you-go. Per-user licensing costs $5 per user per month in the US and allows unlimited usage of Syntex services. The price in EUR may differ depending on the exchange rate and local taxes. Pay-as-you-go licensing charges based on the total number of pages processed by Syntex, with different rates for unstructured, structured, and prebuilt document processing.

According to the Microsoft website, the price of SharePoint Syntex in Belgium is €7,90 per user per month for per-user licensing, and €0,04 per transaction for unstructured document processing, €0,01 per transaction for prebuilt document processing, and €0,04 per transaction for structured and freeform document processing for pay-as-you-go licensing. These prices do not include VAT and may vary depending on the currency exchange rate and the Azure subscription plan. You can find the exact price of SharePoint Syntex in your region and currency on the Microsoft 365 Enterprise Licensing page (listed below in the sources).

What are the benefits of Microsoft SharePoint Syntex?

Microsoft Syntex can help your law firm automate business processes, improve search accuracy, and manage compliance risk. With content AI services and capabilities, you can build content understanding and classification directly into the content management flow. Some of the benefits of using Microsoft Syntex are:

Increased productivity: Your law firm can save time and resources by automating repetitive tasks such as document generation, extraction, classification, tagging, indexing, summarization, translation, etc. You can also access your content faster and easier by using intelligent search capabilities that leverage metadata and AI insights.

Improved quality: You can reduce errors and inconsistencies by using standardized templates, prebuilt models, or custom models that suit your specific needs. You can also ensure that your content is accurate, relevant, and up to date by using AI-powered analytics and feedback mechanisms.

Enhanced security: You can protect your sensitive data by using AI-powered security and compliance features that help you identify risks, apply policies, enforce retention rules, monitor activity, audit changes, etc. You can also backup and restore your content in case of accidental deletion or corruption.

What are the benefits for lawyers?

For lawyers in particular, Microsoft Syntex can offer some additional benefits that can help them streamline their legal workflows, improve their client service, and reduce their liability exposure.

Faster contract review: Lawyers can use prebuilt or custom models to automatically extract key information from contracts such as parties, clauses, terms, dates, amounts, etc. They can also use content assembly to automatically generate contracts based on templates and data sources. This can help them speed up their contract review process, avoid missing important details or deadlines, and ensure consistency across their contracts.

Easier knowledge management: Your law firm can use content AI to automatically summarize, translate, annotate, tag, index their legal documents such as cases, opinions, briefs, memos etc. They can also use intelligent search to quickly find relevant information across their SharePoint libraries or Teams channels. This can help them manage their legal knowledge more effectively, access the information they need when they need it, and share it with their colleagues or clients.

Better compliance and risk management: It is possible to use content management to automatically apply security and compliance policies to their legal documents based on their sensitivity, confidentiality, or retention requirements. Lawyers can also use AI-powered analytics and monitoring to identify potential issues, conflicts, or breaches in their documents and take appropriate actions. This can help them comply with their ethical and legal obligations, protect their client’s interests, and reduce their liability exposure.

 

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Legal IT

Ambient Computing for lawyers

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In our previous article, we discussed ambient computing: what it is, and what the benefits and challenges are. In this article we discuss what the relevance of ambient computing is for lawyers. We look at ambient law, which deals with the legal aspects of ambient computing. Then we ask ourselves, “what are the benefits of ambient computing for lawyers?”, and “what are the challenges?”. But first we start with a short recap on what ambient computing is.

A short recap: what is ambient computing?

In our previous article, we explained that “ambient computing is the idea of embedding computing power into everyday objects and environments, to make them smart, connected, and responsive. The goal is to make it easier for users to take full advantage of technology without having to worry about the details. (…) Ambient computing relies on a variety of technologies, such as sensors, artificial intelligence, cloud computing, voice recognition, gesture control, and wearable devices, to create a seamless and personalized user experience. Ambient computing devices are designed to be unobtrusive and blend into the background, so that users can focus on their tasks and goals rather than on the technology itself.” As such, the concept of ambient computing is closely related to the concept of the Internet of Things.

Examples of ambient computing technology are found in smart homes, cars, business premises, as well as other domains, such as health care, education, entertainment, and transportation, etc.

So, now that we know what ambient computing is, we can focus on the next question: what does ambient computing mean for lawyers and the legal profession? Three items come to mind: what are the legal aspects of ambient computing? What are the benefits for lawyers? What are the risks and challenges for lawyers?

Ambient Law: the legal aspects of ambient computing

When the Internet of Things was starting to take form, the term ambient law was introduced to refer to the legal aspects of using ambient technology. There are four main areas where legal issue can arise, and we can pair them in two sets of two. On the one hand, there is data privacy and security. On the other hand, there is liability and accountability.

Data Privacy and Security

Ambient computing involves collecting, processing, and sharing large amounts of personal and sensitive data from various sources and devices, which raises significant privacy and security concerns.

Privacy: In our previous article we wrote that ambient computing collects vast amounts of data about users’ behaviour, preferences, location, health, and more. This data can be used for beneficial purposes, such as improving services and personalization. But it can also be misused or compromised by malicious actors or third parties. Or they can be sold to third parties, often without the users’ knowledge or consent. Many car manufacturers, e.g., are guilty of this.

In this context, it is worth referring to the SWAMI project, which stands for Safeguards in a World of Ambient Intelligence. This project took a precautionary approach in its exploration of the privacy risks in Ambient Intelligence (AmI) and sought ways to reduce those risks.

The project discovered that several “dark scenarios” where possible that would have negative implications for privacy protection. It identified various threats and vulnerabilities. Legal analysis of these scenarios also showed there are shortcomings in the current legal framework and that the current legislation cannot provide adequate privacy protection in the AmI environment.

The Project concluded that a new approach to privacy and data protection is needed, based on control and responsibility rather than on restriction and prohibition.

Security: Again, there are several aspects to the security side of ambient computing. On the one hand, all the personal data it collects must be protected. Another side is that in essence each new ambient device increases the security risk. Ambient technologies can expose users’ devices and data to cyberattacks or physical tampering. This can compromise users’ safety and functionality of their devices. Cars and baby monitors, e.g., appear to be easy targets for hackers.

There have been initiatives already to tackle the possible security risks inherent in ambient computing. Relevant data security laws generally focus on data protection, cybersecurity, cross-border data transfers, the rights of the data subject, and on penalties for non-compliance.

Liability and accountability

The other two aspects are legal liability and accountability: Ambient computing involves delegating some decisions and actions to autonomous agents or systems that may not be fully transparent or predictable. This raises questions about who is responsible and liable for the outcomes or consequences of those decisions or actions, especially when they cause harm or damage to others. (In a previous article, we looked at robot law and looked at who would be responsible for a robot’s actions: is it the robot, the owner, or the manufacturer?)

As we are dealing with new technologies that are literally all around us, legal liability and accountability in ambient computing are complex issues.

What are the benefits of ambient computing for lawyers?

In our previous article, we highlighted some general benefits of ambient computing. These include convenience, efficiency, engagement, and empowerment. More specifically for lawyers, ambient computing can offer three groups of benefits.

A first set of benefits has to do with improving productivity and efficiency. Ambient computing technology can automate and streamline many routine tasks and processes that lawyers perform. Some law firm management software can already be voice controlled and work together with artificial assistants. (Our article on virtual legal assistants discusses this, too).

Ambient computing can also enhance client experience and satisfaction. It can enable lawyers to provide more personalized, responsive, and proactive service to their clients, by leveraging data and insights from various sources and devices.

Finally, ambient computing can open up new business models and opportunities. It can create new types of services, products, and platforms that leverage ambient intelligence and connectivity.

What are the challenges?

Ambient computing also poses some challenges and risks for lawyers, including the ones we already mentioned above when talking about ambient law.

When it comes to protecting data privacy and security, lawyers have a duty to protect the confidentiality and integrity of their clients’ data, as well as their own data. Therefore, they need to ensure that they comply with the applicable laws and regulations on data protection, such as the GDPR. They also must make sure their ambient technology complies with the ethical standards and best practices of their profession. Furthermore, they need to be aware of the potential threats and vulnerabilities that ambient computing introduces, such as data breaches, cyberattacks, unauthorized access, etc., and take appropriate measures to prevent or mitigate them.

For lawyers, too, there are aspects of legal liability and accountability. Ambient computing involves delegating some decisions and actions to autonomous agents or systems that may not be fully transparent or predictable. This raises questions about who is responsible and liable for the outcomes or consequences of those decisions or actions, especially when they cause harm or damage to others. Lawyers need to understand the legal implications and risks of using ambient computing in their practice or advising their clients on it. They also need to ensure that they have adequate contracts, policies, insurance, etc., to cover any potential liability or claims that may arise from ambient computing.

Finally, ambient computing may force lawyers to adapt to changing roles and skills. Ambient computing may disrupt or transform some aspects of the legal profession or industry, by creating new demands or expectations from clients or stakeholders. Lawyers need to be prepared to adapt to these changes and embrace new roles and skills that ambient computing requires or enables. For example, they may need to become more tech-savvy or data-driven, collaborate more with other professionals or disciplines, or specialize in new areas or domains related to ambient computing.

Conclusion

Ambient computing is an emerging trend that has significant implications for lawyers and the legal profession. Ambient computing can offer many benefits for lawyers who want to improve their practice and service delivery. However, it also poses some challenges and risks that lawyers need to address carefully. Lawyers who want to embrace ambient computing need to be aware of the legal and regulatory aspects of ambient computing in their jurisdiction or context. They also need to be proactive in learning and adopting the best practices and tools that ambient computing provides or demands.

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Legal IT

Ambient Computing

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In this article we discuss ambient computing. We answer the following questions: What is ambient computing? What are some examples of ambient computing? What are the benefits? What are the challenges? In a follow-up article, we will look at the relevance of ambient computing for lawyers.

What is ambient computing?

Ambient computing is the idea of embedding computing power into everyday objects and environments, to make them smart, connected, and responsive. The goal is to make it easier for users to take full advantage of technology without having to worry about the details. Instead of having to directly interact with different computing devices to get desired results – for example, using your phone to make a phone call and your remote to turn on a TV– ambient computing allows all your devices to work together seamlessly to fulfil your needs.

Ambient computing relies on a variety of technologies, such as sensors, artificial intelligence, cloud computing, voice recognition, gesture control, and wearable devices, to create a seamless and personalized user experience. Ambient computing devices are designed to be unobtrusive and blend into the background, so that users can focus on their tasks and goals rather than on the technology itself.

Why call it ambient computing? The Oxford Dictionary defines the word ambient as “relating to the immediate surroundings of something.” So, in this vision of ambient computing the technology is largely invisible and integrated into our surroundings. For this reason, it is also often referred to as ubiquitous computing.

The concept of ambient computing is closely related to the concept of the Internet of Things. Sabrina Ortiz in ZDNet: “the two concepts are intertwined. IoT refers to the vast array devices that connect to the internet to optimize their functionality, like smart sensors and smart speakers: ambient computing builds on that. ‘IoT forms a base for ambient computing, with ambient computing more focused on how devices and intelligent services interact with users,’ Jason Low, principal analyst at the research firm Canalys, tells ZDNET. In other words, ambient computing focuses on the interaction between these devices once they are connected.”

Ambient computing is not a new idea, but it has become more prevalent and accessible in recent years, thanks to the advancements in the Internet of Things (IoT), artificial intelligence (AI), cloud computing, and 5G networks. These technologies enable a vast array of smart devices, sensors, data, and agents that can communicate, analyse, and act in the background.

Some examples of ambient computing

One of the most widespread examples of ambient computing devices are smart speakers and personal voice assistants. Think, e.g., of devices like Amazon Echo, and Google Home. These devices allow users to control their smart home devices, access information, play music, and more, simply by using their voice. Users can speak naturally to their surroundings, without having to look at a screen or press a button. These smart speakers and personal voice assistants and connected devices can turn you home into a smart home where almost everything can be controlled from your phone, or it can be voice controlled. This includes lights, microwave ovens, window blinds, thermostats, washing machines, etc.

Another example of ambient computing is found in cars. Present day cars have all kinds of technology embedded in them, and they are all seamlessly integrated. They have built-in cameras, microphones, and a legion of sensors that all collect and process data in a seemingly unobtrusive way. Consulting firm McKinsey predicts that 95% of new vehicles sold globally will be connected ones by 2030.

Ambient computing can help in business operations, too. The pandemic changed how corporations operate, with many workplaces still having hybrid work models in place. To mitigate the problem of having employees in different places, many workplaces have developed conference rooms that have a sound system which picks up voices from across the room for Zoom calls and allows for smart casting of virtual meetings on a big screen. These office spaces are a great example of how ambient computing is implemented: both the smart casting tech and the sound system remain active in the conference room at all times, cannot be seen and facilitate an everyday activity.

Ambient computing is also expanding to other domains, such as health care, education, entertainment, and transportation. For instance, wearable devices such as smartwatches and fitness trackers can monitor users’ health and activity levels and provide feedback and recommendations. Smart glasses and augmented reality headsets can overlay digital information onto users’ vision, enhancing their perception and interaction with the physical world. Self-driving cars can sense their environment and navigate autonomously, while providing passengers with entertainment and comfort options.

What are the benefits?

As the above examples demonstrate, ambient computing clearly has the potential to bring many benefits to users and society at large. To mention but a few:

  • Convenience: Ambient computing can make users’ lives easier by automating tasks, simplifying interactions, and providing personalized services.
  • Efficiency: Ambient computing can improve users’ productivity and performance by reducing errors, saving time, and optimizing resources.
  • Engagement: Ambient computing can enhance users’ enjoyment and satisfaction by creating immersive and interactive experiences.
  • Empowerment: Ambient computing can enable users to access information and opportunities that they might not have otherwise.

What are the challenges?

As with any technology, ambient computing also poses several challenges and risks that need to be addressed. The most important challenges include:

Privacy: Ambient computing can collect vast amounts of data about users’ behaviour, preferences, location, health, and more. This data can be used for beneficial purposes, such as improving services and personalization. But it can also be misused or compromised by malicious actors or third parties. Or they can just be sold to third parties. Research by the Mozilla Foundation reveals that many car manufacturers, e.g., make a bigger profit from the collected data they sell than from the actual sales of cars. And that is alarming.

Security: Ambient computing can expose users’ devices and data to cyberattacks or physical tampering. This can compromise users’ safety and functionality of their devices. Cars and baby monitors, e.g., appear to be easy targets for hackers.

Ethics: Ambient computing can raise ethical questions about users’ autonomy, consent, trust, responsibility, and accountability. For example, who decides what data is collected and how it is used? How transparent are the algorithms that make decisions for users? How do users balance convenience with control?

Accessibility: Ambient computing can create digital divides between those who have access to ambient technology and those who do not. This can create inequalities in terms of opportunities, education, health care, and social inclusion.

Conclusion

Ambient computing is already changing the way we live and work. It offers many benefits, but there also are some serious challenges that may require extra regulation. In our next article, we have a closer look at its relevance for lawyers.

 

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