WLG | regional Helsinki '24

Published on May 20, 2024

Session Highlights 

 

AI in Law Part 1

  • Generative AI aims to create something new, not just predict outcomes. It requires a deep understanding of both AI functionality and human interaction.
  • AI will augment, not replace, human capabilities. Effective use of AI necessitates understanding both the technology and oneself.
  • Right now, ChatGPT has the ability to create a plan but not execute it. Future developments in AI involve autonomous agents with abilities, goals, and prior knowledge to execute on a plan. These agents will move from planning to execution within the next 3-5 years, increasing both potential and risk, but humans must remain in control.


AI in Law Part 2

 

  • Prompt Engineering is key to success when using AI. Think of the platform as an eager but green intern. The more information and context provided, the better. When crafting prompts, the user should:
    • Tell the platform what role it is playing: "You are a lawyer writing a social media post."
    • Identify the audience: "The post should appeal to other lawyers at all career stages."
    • Tell the platform what they want it to do: "Discuss the four most important considerations when communicating with a client."
    • Describe the desired output: "I want the post to be two paragraphs long, in simple, engaging language."
    • Iterate and modify what it gives you, approaching it like a conversation and requesting tweaks: "I like points one and three, but can we make the others shorter and avoid overusing the word direct." 
  • Remember that everything is regulated–be knowledgeable about your country's legislation and laws, your firm's policies, and your client's restrictions and guidelines surrounding the use of these tools. Record your prompts and how you reach your final product for evidence and compliance purposes. 
  • Always keep the human in the loop. AI aims to please, and therefore users must proofread, check citations, and be ready to accept responsibility for the product. This extends to overseeing your team and knowing if they use these tools correctly.

 

ESG

  • Originally a marketing strategy, ESG (Environmental, Social, and Governance) has transformed into a comprehensive risk management framework. It's now integral to business strategy, especially with the rapid development of ESG regulations in the EU.
  • The EU is at the forefront of ESG regulation, affecting sectors like finance through sustainable finance regulations and EU taxonomy regulation. These regulations emphasize supply chain due diligence and sustainability reporting, presenting significant compliance challenges and opportunities for law firms to advise clients.
  • With new directives allowing NGOs and labor organizations to file civil suits, litigation risks have increased. This surge in ESG-related litigation and green arbitration, especially in Germany, underscores the need for law firms to provide robust legal support to clients navigating these challenges.
  • Law firms are establishing dedicated ESG practices and steering committees to address topics like circular economy and sustainable business models. Training and educating both lawyers and clients on ESG regulations and compliance are crucial. Firms must integrate ESG considerations into all aspects of legal practice, including M&A due diligence.
  • Differentiation through expertise in ESG can enhance a firm's reputation and marketability. Law firms must "walk the walk" by not only advising on ESG but also demonstrating a genuine commitment to these principles in their own operations. This authenticity can be leveraged for not just for marketing purposes, but for building trust and credibility with clients. Additionally, law firms should ensure they can effectively advise on relevant ESG topics, showcasing their ability to navigate the evolving landscape and deliver tangible results for clients.


Client Development

  • Clients value legal advisors who can provide targeted, efficient, and cost-effective support. It's crucial for legal advisors to understand the specific legal frameworks and environments of the jurisdictions involved and to act as strong coordinators who take ownership of projects.
  • Effective strategies include going the extra mile to learn the client's business, providing valuable insights, and maintaining high-quality work. Clients receive dozens of client alerts per day - consider forwarding an important one with a personal note to show the client its relevance and to help build long-term relationships.
  • Demonstrating excellence and diligence in even the smallest tasks or transactions shows a commitment to long-term relationships. Clients can easily discern if a lawyer is genuinely invested for the long term or merely aiming for short-term gains
  • Outside counsel must stay abreast of regulatory changes, such as increasing ESG and FDI regulations, and geopolitical trends that impact client operations. Lawyers should also be knowledgeable about technological advancements and sector-specific developments to provide relevant and timely advice.