To ensure accuracy in its legal AI, LexisNexis unexpectedly hired a large number of lawyers, not just data scientists. These legal experts are crucial for reviewing AI output, identifying errors, and training the models, highlighting the essential role of human domain expertise in specialized AI.

AI tools are taking over foundational research and drafting, tasks traditionally done by junior associates. This automation disrupts the legal profession's apprenticeship model, raising questions about how future senior lawyers will gain essential hands-on experience and skills.

Contrary to the view that useful AI agents are a decade away, Andrew Ng asserts that agentic workflows are already solving complex business problems. He cites examples from his portfolio in tariff compliance and legal document processing that would be impossible without current agentic AI systems.

Contrary to its reputation for slow tech adoption, the legal industry is rapidly embracing advanced AI agents. The sheer volume of work and potential for efficiency gains are driving swift innovation, with firms even hiring lawyers specifically to help with AI product development.

Unlike simple "Ctrl+F" searches, modern language models analyze and attribute semantic meaning to legal phrases. This allows platforms to track a single legal concept (like a "J.Crew blocker") even when it's phrased a thousand different ways across complex documents, enabling true market-wide quantification for the first time.

VC Keith Rabois highlights a core conflict: law firms billing by the hour are disincentivized from adopting AI that makes associates more efficient, as it reduces revenue. This explains why corporate legal departments are faster adopters—their goal is to cut costs.

While AI "hallucinations" grab headlines, the more systemic risk is lawyers becoming overly reliant on AI and failing to perform due diligence. The LexisNexis CEO predicts an attorney will eventually lose their license not because the AI failed, but because the human failed to properly review the work.

AI tools can instantly parse, reformat, and summarize dense documents like congressional bills, which would otherwise require significant manual cleanup. This capability transforms workflows for analysts and researchers, reallocating time from tedious data preparation to high-value strategic analysis.

Don't underestimate the size of AI opportunities. Verticals like "AI for code" or "AI for legal" are not niche markets that will be dominated by a few players. They are entire new industries that will support dozens of large, successful companies, much like the broader software industry.