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w w w . C A N A D I A N L a w y e r m a g . c o m A P R I L 2 0 1 7 29 about the client's situation and then it ana- lyzes thousands of cases produced by the Tax Court of Canada, the Federal Court of Appeal and the Supreme Court of Canada. The AI system then provides a prediction, a tailored explanation and a list of relevant cases for further research. "It will make a prediction based on all of the cases and not just the leading cases," explains Benjamin Alarie, the Osler Chair in business law at the University of Toronto and one of the co- founders of Blue J Legal. He maintains that such technologies will change the nature of litigation as it will increase the likelihood of settlement, while the likelihood of cases going to court will fall, "save perhaps for the most ambiguous," where further legal development will be most valuable. "These are tools that allow people to perform some elements of their jobs better, and these algo- rithms can do a better job in certain things," says Alarie. "It's a very powerful comple- ment to human judgment." But law firms are proving to be a hard sell. A recent survey reveals yet again that the vast majority of law firms are uncom- fortable being early adopters. According to a 2016 International Legal Technology Association-InsideLegal Technology Pur- chasing Survey, more than half of all firms (53 per cent) reported larger tech budgets in 2016 than in 2015, but the majority focused their efforts on bolstering cybersecurity, information governance, business continu- ity or disaster recovery concerns and secu- rity compliance requirements. A staggering 87 per cent of respondents said their firms are currently not evaluating or utilizing arti- ficial intelligence technologies or systems. In many ways, those figures are not surprising. For one thing, the legal industry spends less than one per cent on research and development compared with an aver- age of 3.5 per cent for the typical U.S. business, according to Dan Jensen, head of Nextlaw Labs, a business accelerator focused on investing in, developing and deploying new technologies to transform the practice of law and an autonomous, wholly owned subsidiary of global law firm Dentons LLP. Even law firms themselves acknowledge that investing in new technologies is a chal- lenge, mainly due to the traditional partner- ship model. "Law firms are notoriously slow to adopt new technologies," says Elizabeth Ellis, director of knowledge management at Torys LLP. "Our decision-making process is not what I would call optimal necessarily. We just seem to take a long time to evaluate something, to get all of the views." On top of that, most lawyers view AI as a threat instead of seeing it as an opportu- nity to help deliver better outcomes for cli- ents, said Jordan Furlong, an analyst of the global legal market with Law21. A recent study by McKinsey & Company estimates that 23 per cent of lawyer time is automat- able, while similar research by the highly respected AI expert Dana Remus at the University of North Carolina School of Law concludes that just 13 per cent of lawyer time can be performed by computers. "People don't have to worry," says Kha- lid Al-Kofahi, vice-president, R&D at the Thomson Reuters Centre for Cognitive Computing, a new technology centre that will focus on research in machine percep- tion, reasoning, knowledge management and human-computer interfaces. "Most of the innovations in artificial intelligence and Available risk-free for 30 days Order online: www.carswell.com | Call Toll-Free: 1-800-387-5164 | In Toronto: 416-609-3800 New and updated in this edition Practice and Procedural Guidance from the Authors: • Part 1 Jurisdiction of Federal Courts – An Overview, with new Notices to the Parties and the Profession and the new Practice Guidelines for Aboriginal Law Proceedings • Procedural Charts • The lists of judges and prothonotaries • List of Registry Offi ces Legislation Considered: • Federal Courts Act • Federal Courts Rules • Federal Courts Citizenship, Immigration and Refugee Protection Rules • Canada Evidence Act (excerpts) Commentary and Case Law, including: • Daniels v. Canada (Indian Affairs and Northern Development); Mouvement laïque québécois v. Saguenay (City); Ontario (Energy Board) v. Ontario Power Generation Inc.; Canadian Broadcasting Corp. v. SODRAC 2003 Inc. • Heritage Capital Corp. v. Equitable Trust Co.; Guindon v. Minister of National Revenue • Hospira Healthcare Corporation v. Kennedy Institute of Rheumatology • Canada (National Revenue) v. Thompson • Commission scolaire de Laval v. Syndicat de l'enseignement de la région de Laval • World Bank Group v. Wallace • Canadian Imperial Bank of Commerce v. Green You can access the eBook* version of this publication on Thomson Reuters ProView™ through your web browser, or you can download it to your desktop or laptop (Windows and Mac), iPad, or Android tablet. * Not available to trade bookstores, third-party distributors and academic institutions. Print + ProView Order # 987126BP-65203 $192 Hardcover + ProView eBook November 2016 approx. 1540 pages ProView only A08152-17ON-65203 $165 Print only 987126-65203 $165 1-2 additional annotated supplements $20-$30 per supplement Annual volumes available on standing order subscription Shipping and handling are extra. 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