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As law firms go through transformation in the age of AI, one key to success will be prioritization, said Jae Um, chief growth officer and head of knowledge at Lumio. In the video below from Legalweek last week in New York, she details how firms can set priorities, things to consider for change management and how law firm profitability figures into the calculus of implementing AI technology. Joining Um on the panel titled “Law Firm Deconstruction and Remodeling in the Gen AI Era” were Colleen Nihill of Morgan Lewis & Bockius, Byong K. Kim of Seyfarth Shaw and D. Casey Flaherty of Baretz+Brunelle, with Law.com editor Krishnan Nair moderating. ——— Tap here for more insights about law firm deconstruction in a Q&A with Colleen Nihill and Legaltech News: 🔗 https://lnkd.in/e2P9THDQ

When Heather Nevitt, editor-in-chief of corporate coverage for Law.com, and Patrick Fuller, Law.com's chief strategist for legal, took the stage this morning on the final day of #Legalweek26 to deliver the State of the Industry keynote, Fuller was wearing a conspicuously purple tie. It was not only a nod to their entrance music—Prince's "1999"—but also a hint of the subject matter to come. The presentation began with a tale of two companies: Apple and Netflix. Apple had emerged from a rough period with the launch of the iPod in 2001, which eventually accounted for 40% of their total revenue. But instead of taking a victory lap, CEO Steve Jobs launched an internal project he called Project Purple, tasked with working on a touchscreen device that could not only make calls but also play movies, store music and change how software reached customers. When the iPhone launched in 2007, it made their company-saving iPod obsolete. Compared to Blockbuster Video, which had 9,000 stores, Netflix had "a website and a warehouse," Nevitt said. But in 2007, Netflix launched "Watch Instantly" as an add-on to its DVDs-by-mail subscription offering, at a time when streaming technology was barely in its infancy. Three years later, they launched a full streaming service. And Blockbuster? "9,000 stores became essentially 0 over a few years," Nevitt said.   The question these companies asked themselves is "the same question now sitting on the desk of every general counsel and every firm managing partner in this market," Fuller said. "What will work next? And more importantly, how do we get there first and build the moats?" Change isn't necessarily a question of shiny new tools, although Nevitt insisted "legal needs to speak the language of the business"—see the video below—which now includes "the integration of AI and building trust frameworks." But the real differentiator boils down to two human capacities: leadership and ethical judgment. Two-thirds of respondents to a recent Lexology Pro survey of in-house counsel said they don't feel fully equipped with those two skills. "That gap," Nevitt concluded, "is an opportunity." "The sheer economic force of AI from an increased volume of legal work, VC investment, M&A activity and all the new product categories being created is going to be staggering in ways this industry hasn't fully modeled yet," Fuller said. "And the firms that are position to capture that complexity and lead those clients through that chaos, their revenue opportunity isn't shrinking. It is absolutely transforming." Nevitt cautioned that the clock, however, is running. According to results from a recent Wicker Park Group study, she said, "75% of law firms believe their clients are coming for faster, cheaper and smarter. Not faster or cheaper. All three simultaneously. And that's not really a negotiation. It's a mandate." The question to take away, Fuller said, is "not what are we changing, but what are we willing to redesign?"

Legalweek is leveling up with a refreshed program and several newly designed session formats that bring even more energy, insight and interaction to the week. From our expanded keynote lineup to 100+ sessions across 27 tracks, there’s more opportunity than ever to dive deep into the topics shaping the legal industry. Plus, with concepts like workshops, roundtables, an AI Escape Room and more, this year’s event is built to spark learning, connection, and hands‑on exploration. Legalweek is now just under two weeks away! Will you be joining us? Learn more and register here: https://lnkd.in/dTkAxK6T

As the Pacesetter Research team kicks off a study on the evolution of AI strategies in law, I share some thoughts on where the state of the public discussion of AI has gotten us so far.