An apparent increase in so-called nuclear verdicts is prompting some corporate legal departments to adopt new data tools including predictive analytics and artificial intelligence to decide whether to litigate or settle claims, and which firms and even which lawyers to use before a specific judge.

The insurance industry is leading the pack when it comes to using this “Moneyball” approach to litigation and financial services, but other big companies’ legal departments are also using data tools in their decision-making around litigation. Some law firms are also adopting them.