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Legal AI Startup Harvey Raises $21m In Funding, Attracting More Than 15k Law Firms To Its Waiting List

published April 27, 2023

By Author - LawCrossing
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( 13 votes, average: 4.8 out of 5)
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Legal AI Startup Harvey Raises $21m In Funding, Attracting More Than 15k Law Firms To Its Waiting List

On Wednesday, legal AI startup Harvey announced that it secured $21 million in new funding from investors, including Sequoia Capital, Conviction, SV Angel, and Elad Gil. With the increasing use of advanced generative artificial intelligence tools by lawyers at major law firms, more than 15,000 law firms are on Harvey's waiting list to start using its services. Founded in 2022, Harvey builds custom large language models for law firms using OpenAI's GPT-4 model. Last year, the company raised $5 million in a funding round led by the OpenAI Startup Fund.
 

Since the debut of Microsoft-backed OpenAI's ChatGPT in November, technology companies and investors have quickly adopted significant language model-based generative AI. These models are trained on extensive and customizable data sets to produce text or other outputs that can mimic human creativity and analysis closely. In a recent development, researchers used GPT-4 to pass the bar exam.
 
In February, Allen & Overy, a global law firm, announced that it would automate some document drafting and research using Harvey, which 3,500 lawyers and staff will use. PricewaterhouseCoopers revealed it would give 4,000 legal professionals access to the platform in March.
 
There has been a remarkable pace of adoption of new AI products by several major firms in recent months, which is surprising given that the legal profession was once slow to abandon the fax machine. On Wednesday, Harvey co-founder Gabriel Pereyra and Sequoia representatives did not respond to requests for comment.
 
According to Daniel Tobey, chair of DLA Piper's AI practice, adopting AI tools in the legal industry is like an arms race, and being the last firm to do so can lead to obsolescence. As a result, many established legal technology companies offer generative AI-powered tools, and law firms are rushing to adopt them.
 
Casetext, a legal research company, released its AI legal assistant product, CoCounsel, in March, which uses GPT-4 to speed up legal research, contract analysis, and document review. Large firms like Orrick, Herrington & Sutcliffe, and Fisher Phillips are using CoCounsel.
 
Some firms are developing their AI capabilities, such as Holland & Knight, creating an AI tool to help lawyers review and modify credit agreements. Baker McKenzie has been incorporating large language models into existing services on a pilot basis. The firm's head of machine learning practice, Danielle Benecke, reports that guardrails and testing are essential to protecting confidential client data and avoiding errors.
 
Even law firms that are early adopters of AI technology emphasize the need for caution and evaluation to ensure that the technology is used effectively and securely.
 
David Cunningham, Chief Innovation Officer at Reed Smith, has indicated that his firm is taking a cautious and thoughtful approach to AI adoption. However, he also acknowledges that the firm expects AI to be a game-changer and intends to incorporate it into its operations.

published April 27, 2023

By Author - LawCrossing
( 13 votes, average: 4.8 out of 5)
What do you think about this article? Rate it using the stars above and let us know what you think in the comments below.