Replacing lawyers?

Globes has some financial news about an Israeli startup that caught my eye:

Israeli online contract review platform LawGeex announced today $2.5 million in funding from Lool Ventures and LionBird and angel investors Eilon Tirosh and Rami Lipman. The startup has also launched its online contract review solution free of charge for consumers. Using machine learning, the Israeli startup sets out to “out-lawyer” the lawyers.

And how do you “out-lawyer” lawyers, according to the report?

LawGeex allows consumers to upload any type of contract to its platform and receive, within 24 hours, an in-depth report of what’s good, bad and even missing from their contract. Currently reviewing over 20 types of contracts, the free solution begins with employment agreements, with more contract types to be offered for free in the near future.

Here’s more by way of context:

LawGeex cofounder and CEO Noory Bechor said, “The driving force behind LawGeex is the belief that no one should sign a contract that they don’t fully understand. An astounding 33% of Americans need a lawyer every year but do not hire one, either because they can’t afford to or did not know where to turn. This ultimately leads to one-sided negotiations and unfair results. LawGeex has already earned the trust of thousands of users while ensuring quality and transparency, leveling the playing field when it comes to contract negotiations. Our machine learning platform has already reviewed over tens of thousands of contracts, many of which are employment contracts from some of the world’s largest tech companies such as Apple, Google, and Facebook. We make sure all employees get a fair deal.”

An interesting concept. So, you get a contract, and you give it to LawGeex to review. LawGeex tells you what is wrong with the contract.

(I have assumed the system is somehow able to tailor its advice taking into account jurisdictional issues. For example, just sticking to employment contracts, there are differences between USA and UK law about what is required, what is the normal standard, and what is legal and illegal.)

That’s very helpful. But what then? How do you fix the contract? It doesn’t appear if LawGeex is going to give you the contract wording required to address whatever issues arise. And, knowing what needs to be added to a contract, and actually adding it – making sure all the angles are covered – is no trivial task. To do it properly, you need to have some experience or training. You know, like being a lawyer…

I’m poking fun at the concept while recognizing that they do not promote it as a complete legal solution. But that’s not exactly an up front message. So, I question how useful LawGeex might be without proper legal skills to back it up. I have not seen anything to suggest LawGeex will provide the missing text, nor am I aware of any technological solution. For sure, there are online contract providers, but they are all offering templates, and not individually tailored contract revision advice. For that, at least for now, you need a human being. (A bit of a stretch when it comes to some members of my former profession, I know, but let’s live with it for now.)

It will be interesting to see how LawGeex does. Perhaps it will be a fit for someone else active in this field. But for now, I’m skeptical it will be successful, long term.

The Globes report is available, here.

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