Welcome to 2025
A small newsletter on legaltech
AI
Editorial notes
Like everyone else who is trying to understand enough of the technology of generative AI models to grasp how they can be used effectively for legal tasks (there are dozens of us!), I’m trying not to flail over the news about DeepSeek and its implications for AI development. It seems fair to assume that while it’s competitive with ChatGPT, it will also have the same difficulties with hallucinations and other errors. However, the supposed reductions in costs for training the model can open up a range of products for legal providers who might be priced out of the Big Four (Westlaw, Lexis, Bloomberg Law, vLex). More efficient models (both economically and environmentally) may actually shake up legaltech markets, if the promise turns out to be true. This isn’t to say that law firms should start using this model/app immediately (in fact, don’t, there are a myriad of privacy and data protection issues), but I think it’s something to keep watching and start debating.
At the end of last year, the European Data Protection Board issued an opinion on the intersection of generative AI models and the GDPR [PDF]
Another attorney has been admonished by a judge for the inclusion of citations to non-existent cases in a legal brief, presumably introduced by a GenAI research product
From Bloomberg Law ($): “Outcry Over Insurer AI Use Energizes State Bids to Crack Down”
From Law360 ($): Both the EEOC and the Department of Labor have removed documents from their websites that provided guidance on AI tools and anti-discrimination laws
Practical Guidance for Legal Usage of GenAI:
The Florida Bar has put together a guide on using GenAI for legal practice, including comparison charts of features, a sample disclaimer for clients, and more
The Illinois Supreme Court released a two-page AI Policy for all persons involved with the courts and a reference sheet on AI for judges
From TechCrunch: “Meta says that the [the company’s AI] chatbot will now use account info from across Meta’s apps to give personalized recommendations” without an opt-out option
Facial Recognition and the Criminal Justice System:
“Arrested by AI: Police ignore standards after facial recognition matches”
“Cleveland police used AI to justify a search warrant. It has derailed a murder case”
Blockchain/Digital Currency
Pension funds are starting to “dabble” in cryptocurrency by investing in exchange traded funds (ETFs) for crypto
An Executive Order, “Strengthening American Leadership Through Digital Financial Technology,” that was signed last week includes the creation of a working group on digital asset markets that will work on a framework for new regulations and a national cryptocurrency stockpile and prohibits creating or using central bank digital currencies in the U.S. [Order | Reuters article | Holland & Knight alert]
Miscellaneous
The Arizona Supreme Court has postponed deciding on KPMG’s application to practice law in the state under its alternative business structure program and requested “additional information or clarification on aspects of the application” [Bloomberg Law ($) | Law360 ($) | ABA Journal ($)]
Long Reads
Ouellette, L.L., Fang, V. & Ouellette, N.T. How will AI affect patent disclosures?. Nat Biotechnol 43, 26–28 (2025). https://doi.org/10.1038/s41587-024-02515-6
Smith, Michael L., Generative AI and the Purpose of Legal Scholarship (January 03, 2025). Available at SSRN: https://ssrn.com/abstract=5081325 or http://dx.doi.org/10.2139/ssrn.5081325