Let’s talk some industry and AI.
The American Bar Association issued Formal Opinion 512, which outlines ethical considerations for lawyers using generative AI tools, emphasizing the need for competence, confidentiality, client communication, and supervisory responsibilities. Lawyers must understand the technology’s limitations, ensure client data privacy, obtain informed consent before using AI tools, and independently verify AI outputs. The opinion also states that lawyers cannot charge clients for learning to use AI tools and must ensure any efficiencies gained benefit the client.
AI is increasingly being adopted in risk management, with 77% of insurance companies indicating some level of AI integration. Challenges to adoption include organizational resistance, technical complexity, and lack of understanding among staff. AI offers significant benefits such as improved claims processing, fraud detection, better reserving, enhanced underwriting, and knowledge transfer.
Morgan Stanley interns overwhelmingly prefer human customer service, with 93% favoring human interaction over AI, and 75% reporting that AI chatbots fail to resolve issues at least half the time. Despite claims of AI improving efficiency in call centers, the reality shows that many consumers still seek empathetic human support for their problems.
Verizon is leveraging AI technology to proactively prevent accidental cuts to its fiber internet lines, which often occur during construction. By integrating the 811 “Call Before You Dig” program with its AI system, Verizon aims to identify high-risk digging requests and reduce the number of incidents. This approach utilizes historical data and current excavation activities to predict potential line damage, ultimately minimizing internet outages and their impact on businesses and individuals.
Researchers at the University of Exeter developed VespAI, an AI system to combat invasive yellow-legged hornets that threaten British honeybees. The system accurately identifies hornets through photographs and minimizes environmental impact by not harming non-target insects, aiding in tracking and destroying hornet nests effectively.
Forbes covered how AI is increasingly being integrated into manufacturing, distribution, and warehousing, enhancing productivity and profitability. Key areas of deployment include robotics, where companies like Walmart and Amazon are utilizing AI-powered robots; the Internet of Things (IoT) for smart equipment; 3D manufacturing for rapid prototyping; and consolidating data into large language models for improved decision-making
And the New York Times looked at new businesses where generative artificial intelligence is significantly aiding entrepreneurs in launching new companies by enhancing efficiency in tasks such as marketing, coding, and customer recruitment. Professors like Sean Ammirati at Carnegie Mellon University have observed accelerated progress in student start-ups when using AI tools. Entrepreneurs report that AI helps them navigate challenges, reduce costs, and expedite the path to profitability. Research indicates that younger firms are increasingly adopting AI, suggesting a potential transformation in the start-up landscape.
Why do we care?
Uses cases help clarify opoortunities. Let’s highlight importance of developing an AI governance program, particularly within law firms. This will apply broadly, of course. What’s common here is the data required to make these systems valuable, and that’s a precursor opportunity to explore with your clients.
Consider the reporting problem – either the tools you use have a pre-canned set of reports, which feel limiting, or you are given a complex report builder to learn. With AI, one can use natural language to interact with data and get insights. That’s the key insight here.
