Even FLOE? A Strategic Framework for Considering AI in eDiscovery

[EDRM Editor’s Note: This article was first published August 10, 2023 and EDRM is grateful to Rob Robinson and ComplexDiscovery for permission to republish. The opinions and positions are those of ComplexDiscovery.] 

ComplexDiscovery Editor’s Note: The integration of Artificial Intelligence (AI) and Generative AI (GAI) in eDiscovery represents a transformative direction for the legal industry. This article presents a comprehensive and strategic framework focusing on financial, legal, operational, and ethical (FLOE) alignment. It emphasizes intentional development, internal and external strategies, Quality Control (QC), and Human-AI Teaming (Reciprocal Intelligence). The insights provided offer a roadmap for investors and organizations seeking to harness AI and GAI responsibly, maximizing opportunities and reducing risks. The article concludes with a postscript that underscores the importance of QC and Reciprocal Intelligence, highlighting the potential for long-term time and cost efficiencies in the eDiscovery market.

Industry Feature Article

Even FLOE? A Strategic Framework for Considering AI in eDiscovery

ComplexDiscovery Staff

A Holistic Approach to Considering AI 

In the age of technological evolution, Artificial Intelligence (AI) and Generative AI (GAI) stand as pivotal innovations, transforming how industries function and grow. eDiscovery is one such sector where AI and GAI are not mere buzzwords but vital components driving change and efficiency.

AI refers to a broad domain where computer systems mimic human intelligence, including cognitive functions such as learning, problem-solving, and understanding natural language. Conversely, GAI extends AI’s capabilities to create new content or data, going beyond analysis to synthesis, simulating human-like creativity.

The importance of understanding and implementing AI and GAI in eDiscovery transcends mere financial investments; it encompasses a broader perspective where companies need to invest time, resources, and intellectual capital with a priority focus on growth, followed by profit. Strategic investment approaches need to emphasize leading, managing, and utilizing AI to foster innovation, efficiency, and ethical responsibility. Unlike a profit-first model, where short-term gains might be prioritized, a growth-first orientation ensures a sustainable development path, aligning technological advancements with long-term business objectives and ethical considerations.

Adherence to Intentionally Appropriate Development

In the context of eDiscovery, intentionally appropriate development of AI and GAI means a balanced and well-thought approach, aligning with ethical standards and business goals. For example, a legal firm might implement AI to enhance document review or cybersecurity incident response, ensuring the technology adheres to legal compliance and protects client confidentiality.

An intentional approach looks beyond immediate financial gains, focusing on long-term benefits such as building client trust, strengthening the brand reputation, and contributing to the broader legal ecosystem. The development of AI models that understand legal jargon and contextually analyze documents represents an opportunity to elevate the quality of service and create unique value propositions. This should also result in more cost-effective solutions.

Resistance to Inappropriate Opportunistic Development

The allure of quick wins and short-term financial gains can lead to inappropriate opportunistic development and corresponding media announcements, potentially undermining trust and ethical standards. This might be evident in the use of AI algorithms that lack transparency or violate privacy regulations, resulting in legal disputes and damage to brand reputation. Another manifestation of this issue could be continuing to bill at high hourly rates when actual work hours have been substantially reduced by AI usage. Such practices can erode trust, and they do not align with the strategic focus on growth nor with the ethical responsibilities inherent in the intentionally appropriate application of AI in the eDiscovery field.

Companies must resist taking shortcuts, ensuring that AI development aligns with legal, ethical, and societal norms. A robust governance framework, continuous monitoring, and collaboration with regulatory bodies are key strategies to avoid inappropriate opportunistic development.

Internal and External Strategic Approach Considerations

AI and GAI offer unprecedented opportunities to enhance internal operations. By implementing machine learning algorithms, companies can automate routine tasks, such as data sorting and categorization, freeing human resources to focus on more complex and value-added activities.

For example, AI-powered predictive analytics can provide insights into potential legal risks and opportunities, guiding strategic decisions. Human-AI teaming, where human experts collaborate with AI systems, can foster innovation, improve efficiency, and create a more responsive and agile organization.

Externally, AI and GAI have the potential to extend and expand external offerings, transforming customer experiences by providing tailored and personalized solutions. For example, AI-powered chatbots can offer 24/7 client support, answering queries and providing information efficiently. This ability to extend and expand external offerings through AI enables organizations to enhance client engagement and respond to needs with unprecedented agility and precision.

In cybersecurity, AI algorithms can detect and respond to threats in real-time, protecting sensitive data and maintaining integrity. In cyber discovery, AI can analyze vast amounts of data, uncovering hidden patterns and insights that human analysts might miss.

Strategic Milestones Matter

Setting clear strategic milestones is vital for tracking progress and aligning with long-term goals. From the initial implementation of AI in fundamental data analysis to sophisticated human-AI collaboration in complex legal scenarios, a road map should guide the journey.

Investors and companies must also recognize the milestones that signify growth, innovation, and alignment with legal and ethical standards. Regular reviews, stakeholder engagement, and agility in adapting to new technological trends are essential for monitoring and achieving these milestones.

Understanding, leading, managing, and using AI in eDiscovery are the four foundational pillars of a successful AI strategy. Each element requires careful consideration, planning, and execution to harness the full potential of AI in the eDiscovery landscape.

• Understanding AI: Educating stakeholders, building a knowledgeable team, and creating a clear vision ensures a strong foundation for AI in eDiscovery. Understanding involves not just technical knowledge but also legal, financial, operational, and ethical business aspects.
• Leading AI: Leadership in AI requires a strategic approach, fostering a culture of innovation, ethical responsibility, and continuous learning. Leaders must champion AI initiatives, ensuring alignment with business goals and societal values.
• Managing AI: Effective management of AI involves governance, risk management, compliance, and operational excellence. A robust management framework ensures that AI initiatives are executed efficiently, responsibly, and in line with regulatory requirements.
• Using AI: The practical application of AI in eDiscovery involves integrating AI tools into existing workflows, customizing solutions for specific client needs, and continuously monitoring and optimizing performance. The practical use of AI must be client-centric, focused on delivering value and enhancing the quality of service.

The Time Value of Money

Decreased Time to Initial Results

AI’s ability to process and analyze data at incredible speeds translates into significant time savings in many tasks. For instance, AI-powered document review can reduce the time required for initial sorting and categorizing by over 50%, translating into cost savings and faster response times.

However, this efficiency gain is accompanied by the need for meticulous Quality Control (QC), ensuring that AI-generated results meet the required standards of accuracy and reliability.

Increased Time for Quality Control

The complexity of AI algorithms and the critical nature of legal decisions necessitate thorough QC. While AI can quickly generate results, verifying and validating those results requires careful human oversight, potentially increasing the time for QC.

Investments in developing AI models that incorporate explainability, transparency, and human-centric design can reduce QC time in the long run. Collaborative efforts between AI developers, legal experts, and regulators can create standardized guidelines and best practices, enhancing trust and efficiency in AI-generated results.

From Framework to Function

Artificial Intelligence and Generative AI are not merely technological trends but a strategic imperative for eDiscovery. Investors, whether financial entities or company leaders investing time and resources to embrace AI, must recognize the transformative potential and the corresponding responsibilities for appropriately translating strategic plans and frameworks into functional products and services.

A strategic approach that emphasizes intentional development aligns with ethical norms, leverages internal and external enhancement opportunities, and carefully balances time and money considerations is essential for success. The journey towards AI-powered eDiscovery is filled with challenges and opportunities, but with a clear vision, strong leadership, and responsible execution, the rewards are immense.

PostScript

The Power of FLOE Alignment

The journey toward embracing Artificial Intelligence (AI) and Generative AI (GAI) in the eDiscovery landscape is filled with complexity and opportunity. As this strategic approach outlines, the path to success hinges on a nuanced and intentional alignment from a financial, legal, operational, and ethical (FLOE) perspective.

Providers in the eDiscovery ecosystem who diligently follow these precepts will position themselves for long-term success. FLOE alignment encapsulates the core principles guiding responsible AI development and serves as a compass to maximize opportunities while simultaneously reducing inherent risks.

The QC Multiplier and Reciprocal Intelligence

The horizon of AI in eDiscovery extends beyond mere summarization and analysis tasks. Until the arrival and industry-wide trust in Artificial General Intelligence (AGI) for eDiscovery, perhaps the most significant business opportunity lies in  Quality Control (QC) verification and validation tasks.

QC represents a critical juncture where the synergy of Reciprocal Intelligence (RI), or Human-AI Teaming, comes into play. As RI encompasses human expertise and AI capabilities, efforts to streamline this relationship, mainly by reducing the most costly part of QC—the human component—may lead to groundbreaking impacts on long-term time and cost efficiencies for the eDiscovery market.

The narrative of AI in eDiscovery is unfolding, and the opportunities are vast and varied. But the key to unlocking these opportunities lies in a strategic, intentional, and ethical approach that recognizes the unique role of human intelligence in concert with AI. The future of eDiscovery, powered by AI, promises not just efficiency and innovation but also a responsible and sustainable path that honors the intricate balance between technology, law, and human values.

Assisted by GAI and LLM Technologies

Additional Reading

• eDiscovery Survey Archives of ComplexDiscovery
• eDisclosure Systems Buyers Guide – Online Knowledge Base

Source: ComplexDiscovery