Hello Friday!

Hi all! Well, I wrapped up the semester at The Richmond School of Law where I teach Legal Business Design. I hope you all had a productive week as well.

It’s been a bit since I polled you all to get a sense of what roles you have - it helps me shape the newsletter. Can you take a second to answer this poll?

👋 Hello! to our NEW SUBSCRIBERS! To read previous posts, go here.

Ok, today we will:

1. ask about the role of AI chatbots in courts

2. show where a leading VC funder is placing its GenAI bets

3. revisit some beginner ChatGPT prompts

4. get teased about a Legal-specific LLM about to be released

5. cover ALAS’s (legal insurer) warning to firms on ChatGPT

6. update you on NY’s new rules regarding use of AI in hiring

Courthouse Chatbots

How can courts and policymakers adapt to the rise of AI-driven chatbots in the legal system to ensure fairness and prevent abuse?

The hype around chatbots, especially in the legal industry, raises concerns about the potential for flooding state and local courts with low-quality, small-dollar cases. Debt collection agencies are already taking advantage of the system, and courts are unprepared for the future surge in cases where chatbots could become the norm. The consequences of this trend include a breakdown of the legal system and a lack of faith in it.

Wired just released this article that hits on the following:

1. The rise of debt collection cases has resulted in a significant increase in small-dollar cases, overburdening local court dockets.

2. Courts often grant judgments without checking the validity of the plaintiff's documentation, leading to a toxic system that benefits high-volume filers at the expense of defendants.

3. AI-driven chatbots could exacerbate the problem, further overloading courts with cases and potentially leading to widespread abuse of the legal system.

4. Simple changes in court processes, such as incorporating design friction and embracing data, could help mitigate the potential risks and improve the system.

5. The rise of software-powered legal advice highlights the need for systemic reform in the legal profession and court systems.

Follow the Money

This is a great graph showing where one of the leading VC funders is making its bets in GenAI. (click on the pic to enlarge it)

For those unfamiliar with Y Combinator . . . It is a company that helps startup businesses grow by providing them with funding, guidance, and resources.

It's like a school for entrepreneurs, where selected startups join a program for a few months, learn from experienced business people, and work on their ideas. At the end of the program, these startups present their progress to potential investors in an event called "Demo Day." Y Combinator has helped many successful companies, like Airbnb and Dropbox, get their start.

Easy Prompts Revisited

Some of you are new and some have been with me from the early days. Regardless it is time to revisit some fairly easy prompts to demonstrate the magic and power of ChatGPT. These are not expert-level but they are great nonetheless.

1. Create Document outlines

▶︎▶︎PROMPT: Please create a document outline on [your topic]. Make it precise so that it’s easy to follow and gives the reader a clear overview of the document's contents.

2. Proofread documents

▶︎▶︎PROMPT: Below is my document, please proofread and edit it to have the correct grammar and fix any typos. [paste document data]

3. Write an article or blog post

▶︎▶︎PROMPT: Write a 1000-word article using plain language and an engaging tone on [paste your topic]

4. Create an article summary

▶︎▶︎PROMPT: In an easy-to-understand tone, summarize the following content by creating a few introductory sentences and then use bullets for the key points, ideas, or talking points [paste content]

A Data Stack for Legal Professionals is coming online soon!

We will be following this and sharing more in-depth info soon but wanted to flag this now to share that things keep moving fast.

Kelvin ships language models (LLMs) built for legal and integrates with common LLMs like GPT, T5, Claude, PaLM, and BERT

• Kelvin is a platform that offers modular, modern, and easy-to-use software components for the legal industry.

• Kelvin can help law firms, legal departments, alternative legal service providers, and legal technology providers to create data-driven processes and products.

• Kelvin can handle various types of legal data and use cases, such as financial data, contract drafting and review, knowledge management, and regulatory and litigation monitoring.

News you can Use: 

AI's Legal Tango: Insurance Firm Warns Lawyers of ChatGPT Risks

• Attorney' Liability Assurance Society (ALAS) cautions lawyers on ChatGPT's legal risks

• No direct guidance on coverage but highlights potential ABA rule violations

• Cybersecurity insurers may scrutinize ChatGPT use

🚨 For New York in-house teams or firm’s NY clients!

Big Apple's Robo-Rules: NYC Finalizes its Automated Employment Decision Tools Law

• NYC issues Final Rules on automated employment decision tools (AEDT) law

• Final Rules expand scope of "machine learning, statistical modeling, data analytics, or artificial intelligence"

• Law prohibits AEDT use without a bias audit, public audit info, and written notices

• AEDT law and Final Rules go into effect on April 15, 2023

That's a wrap for today. Stay thirsty & see ya next time! If you want more, be sure to follow me on Twitter and LinkedIn.

DISCLAIMER: None of this is legal advice. This newsletter is strictly educational and is not legal advice or a solicitation to buy or sell any assets or to make any legal decisions. Please be careful and do your own research.