Artificial intelligence (AI) in law has garnered significant attention, but its capabilities may not live up to the hype. As a lawyer and legal entrepreneur whose career has coincided with multiple phases of transformation in legal technology, I have learned to approach each new innovation with caution. From the introduction of email to the advent of the internet and e-discovery, there has always been a period of initial excitement around new technologies. However, it is crucial to distinguish between practical and achievable solutions and lofty promises and ideas not yet ready for implementation.
In this article, I examine how AI is being used and can potentially be used in legal finance—the practice of providing financial resources and funding for litigation and arbitration claims. Specifically, I will examine the role of AI in sourcing investments, making investment decisions and predicting outcomes once investments are established.
