A&O Shearman invests heavily in AI strategy

A&O Shearman is entering a new phase of its artificial intelligence (AI) strategy with a landmark commitment of USD1.1 billion over the next five years. This investment primarily stems from a mandate for each practice to allocate at least 3% of its time towards developing specialist AI tools and services tailored to their area of law. This strategic direction aims to revolutionise the design and delivery of legal work while ensuring that the firm’s training processes keep pace with advancements in AI.

The initiative represents a significant evolution in A&O Shearman’s legal framework, following its pioneering rollout of generative AI in 2022, which marked the first such undertaking in the legal sector worldwide. This commitment is not just about technology; it is about embedding deep sector knowledge into AI systems to create bespoke legal tools that provide greater client value than a one-size-fits-all approach.

Having spent four years testing the deployment of AI, the firm has garnered insights that reinforce the notion that deep expertise yields superior results. A&O Shearman’s AI strategy emphasises collaboration with clients, allowing lawyers, data scientists, and developers to work in tandem to deliver innovative solutions like ContractMatrix. The uptake of these services has surged, demonstrating the market's recognition of the unique value that combines legal acumen with AI technologies.

Measuring the success of this initiative will revolve around tangible outcomes for clients, particularly in terms of efficiency, cost reduction, and access to actionable data. The firm is devoted to setting a higher benchmark for client expectations in the legal sector and redefining the parameters of what a global law firm can achieve using AI.

“This significant investment signals where we intend to take the firm over the next decade,” shared Hervé Ekué, A&O Shearman's global managing partner. He elaborated, “AI lets us bring an enhanced skillset to our clients' work, however complex, on a global scale and in a way that wasn't possible before. It opens new ways to deliver value and sharpens how we compete. The firm that leads will combine exceptional legal judgment with the speed and scale to apply it consistently, anywhere in the world. We intend to be that firm and that is what this investment accelerates.”

A&O Shearman has already established itself as an industry frontrunner, previously becoming the first law firm to implement generative AI on an enterprise-wide scale. The firm has continued to innovate, partnering with tech leaders like Microsoft and Harvey to create AI-powered solutions that serve both corporate clients and fellow law firms. This strategic alliance has facilitated the launch of enhanced products like ContractMatrix Vantage, underscoring the firm’s commitment to evolving legal services through advanced technology.

With a well-structured governance framework in place, A&O Shearman ensures legal integrity is maintained while leveraging AI tools. A qualified lawyer oversees all advice provided, ensuring that responsibilities are clearly defined regardless of AI’s role in the process. The firm collaborates actively with regulators and industry bodies to advocate for responsible AI deployment in legal services, reinforcing its commitment to compliance and industry advancement.

As A&O Shearman embarks on this ambitious journey, the firm is poised to redefine the legal landscape, setting new standards for client service and engagement through the innovative use of artificial intelligence.