In the news
UK tech sector takes top spot in Europe and is main challenger to US and China
Around £24bn was raised by UK tech companies in 2022, more than France (£11.8bn) and Germany (£9.1bn) combined. An overall valuation of $1tn for the UK tech sector makes it the third country ever to hit this milestone after the US and China. The UK also takes second place outside the US for fintech investment, raising almost £10bn this year.
Crypto technology pros and cons set out in regulator’s report
Speed, cost savings, and traceability are just some of the benefits of using distributed ledger technology, according to a new report published by the Solicitors Regulation Authority. A wide range of sectors connected to the legal industry are already using such technologies, and Master of the Rolls Geoffrey Vos has described them as being at the same stage of development as the internet in 1995. However, there are risks. These include money laundering and fraud, establishing jurisdiction, and value instability.
Lawtech UK operation continues under Legal Geek and CodeBase
A tech start-up supporter, CodeBase, and legaltech hivemind, Legal Geek, have received £3m of government funding to further sponsor and invest in lawtech innovation in the UK. Lawtech UK is a government-backed initiative, launched in 2019. National network Tech Nation was previously tasked with promoting new ways of delivering and accessing legal services, one of which was the Legal Access Challenge. Legal Geek Director Beth Fellner said: ‘[We] will ensure Lawtech UK develops the legal sector nationwide, equipping organisations of all sizes with the culture, expertise and confidence to innovate.’
Artificial intelligence (AI) chatbot set to disrupt the market
Contract analysis, due diligence, litigation and regulatory compliance are just some of the legal tasks a ChatGPT-based assistant has been carrying out. During a trial, the chatbot, Harvey, was asked around 40,000 queries by 3,500 lawyers about their day-to-day client work. It is now able to automate and enhance various aspects of legal work. David Wakeling, Head of the Markets Innovation group at Allen & Overy, where Harvey is based, said: ‘I have been at the forefront of legaltech for 15 years but I have never seen anything like Harvey. It is a game-changer that can unleash the power of generative AI to transform the legal industry.’
One-size-fits-all lawtech won’t work on the high street
While artificial intelligence and other big tech may be changing the landscape of some firms, high-street practices are taking their own approach to adopting what tech best suits their business. Standard systems for data and access storage work best for Edward Friend, Director of Carreg Law in Llandeilo Wales. The firm has a hybrid model where 10 employees work from the firm’s office and remotely from home: ‘I looked for the most robust, simple and approachable technology for data storage… as it works on every device.’ Friend also comments that: ‘Current AI products don’t meet the ethos of the firm – to provide personable, high-quality legal advice… They miss out the warmth and approachability that help to differentiate us.’
ChatGPT passes US bar exam with flying colours
ChatGPT-4, the latest version of the AI chatbot, has approached the top 10% of those taking the Uniform Bar Examination. The bot sat all parts of the bar exam and did particularly well on the multiple-choice section, where it got 76% of the questions right compared to the human average of 68%. ChatGPT-4 continues to develop apace – it can accept images as well as text as inputs, allowing users to ask questions about pictures. The new version can handle longer pieces of text and can remember and react on more than 20,000 words at once.