The Great Disruption: How Machine Intelligence Will Transform the Role of Lawyers in the Delivery of Legal Services

Objective: to analyze the influence of machine intelligence on legal practice and services.Methods: dialectical approach to cognition of social phenomena, allowing to analyze them in the historical development and functioning in the context of a set of objective and subjective factors, which determined the choice of the following research methods: formal-logical, comparative-legal, state and legal modeling.Results: The market for electronic legal services is at a relatively early, yet significant, stage in terms of the disruptive effect of machine intelligence in undermining lawyers' monopoly. As machine intelligence in lawyering develops exponentially, it will take an increasingly larger role in legal practice. Eventually, machine intelligence will prove faster and more efficient than many lawyers in providing those services. Lawyers will continue to provide services that cannot be commoditized if they are superstars, practice in highly specialized areas of law subject to rapid change, appear in court, or provide services where human relationships are central to their quality. Otherwise, no effective barriers to the advance of machine lawyering in legal practices exist - not even in the law and ethics of lawyering. Lawyers will continue to embrace machine intelligence as an input and fail to prevent non-lawyers from using it to deliver legal services. Ultimately, therefore, the disruptive effect of machine intelligence will trigger the end of lawyers' monopoly and provide a benefit to society and clients as legal services become more transparent and affordable to consumers, and access to justice thereby becomes more widely available. Scientific novelty: for the first time, the authors formulate the five areas of legal practice which will significantly change in the nearest future under the influence of machine intelligence: (1) discovery, (2) legal search, (3) generation of documents, (4) creation of briefs and memoranda, and (5) predictive analytics. Machine intelligence has already begun to significantly compete with lawyers and undermine their monopoly. Today, sizeable financial industries use machine intelligence to deliver legal services, even though the most economically significant developments have occurred in only three of the five areas identified above. The three areas that have proven most profitable are legal research, discovery, and document generation. Practical significance: the key results and conclusions of the research can be used in scientific, educational and law-enforcing activities when considering the issues related to the influence of machine intelligence on legal practice and services.

Machine intelligence, Robotization, Digital economy, Industrial revolution, Legal practice, Legal procedure, Law

1. Holcomb J. News Revenue Declines Despite Growth from New Sources, PEW RES. CENTER, 2014, Apr. 3, available at: http://www.pewresearch.org/fact-tank/2014/04/03/news-revenue-declines-despite-growth-from-new-sources

2. Lemley D. L., Burk & Mark A. Lemley. Policy Levers in Patent Law, Virginia Law Review, 2003, Vol. 89, pp. 1575.

3. Adams H. The education of Henry Adams, ed. Lodge H. C., 1918.

4. Hilbert M., Lopez P. The World's Technological Capacity To Store, Communicate, and Compute Information, SCIENCE, 2011, Apr. 1.

5. Kurzweil R. Making the World a Billion Times Better, WASH. POST., 2008, Apr. 13. P. B4.

6. Moravec H. Robot: mere machine to transcendent mind, New York, Oxford University Press, 1999.

7. Geelan J. Moore's Law: "We See No End in Sight," Says Intel's Pat Gelsinger, SYS-CON MEDIA, 2008, May 1, available at: http://java.sys-con.com/read/557154.htm

8. Johnson G. A Shortcut Through Time: The Path to the Quantum Computer, 2003.

9. Report to the President and Congress: designing a digital future: federally funded research and development in networking and information technology, Report to the President and Congress: designing a digital future: federally funded research and development in networking and information technology 71, 2010 available at: http://www.whitehouse.gov/sites/default/files/ microsites/ostp/pcast-nitrd-report-2010.pdf

10. M. Chui et al. The Internet of Things, MCKINSEY Q., 2010, Mar., pp. 70, 74.

11. Markoff J. Computer Wins on 'Jeopardy!': Trivial, It's Not, N.Y. TIMES, 2011, Feb. 17, p. A1.

12. Hardy Q. IBM Is Betting That Watson Can Earn Its Keep, N. Y. TIMES, 2014, Jan. 9, p. B9.

13. Gur-Arie M. IBM's Watson Starts Its Medical Career, KEVINMD.COM, Mar. 30, 2013, available at: http://www.kevinmd. com/blog/2013/03/ibms-watson-starts-medical-career.html

14. Elementary Solution: IBM's Watson To Sequence Cancer DNA, KHALEEJ TIMES, 2004 Mar. 21, available at: http://www. khaleejtimes.com/kt-article-display-1.asp?section=diversions&xfile=/data/diversions/2014/March/diversions_March11.xml

15. Moon M. IBM Watson's Supercomputer Has a New Job, As a Lawyer, DIGITAL TRENDS, 2013, Mar. 13, available at: http://www.digitaltrends.com/computing/watson-usc-competition/#!CqOoE

16. Walton M. Robots Fail To Complete Grand Challenge: $1 Million Prize Goes Unclaimed, CNN.com, 2004 May 6, available at: http://www.cnn.com/2004/TECH/ptech/03/14/darpa.race/

17. Autonomous Vehicles: Self-Driving Vehicles, Autonomous Parking, and Other Advanced Driver Assistance Systems: Global Market Analysis and Forecasts, NAVIGANT RES, available at: http://www.navigantresearch.com/research/autonomous-vehicles (дата обращения: 26.04.2014).

18. Bennett S. C. E-Discovery by Keyword Search, PRAC. LITIGATOR, 2004, May, pp. 7, 9.

19. Looby J. H. E-Discovery - Taking Predictive Coding Out of the Black Box, FTI J., 2012, Nov. available at: http://ftijoumal. com/article/taking-predictive-coding-out-of-the-black-box-deleted

20. Vance G., Silverstein A. McDermott and DOJ Embrace Predictive Coding; 5 Lessons Learned During Fast-Paced Merger Review, L. TECH. NEWS, 2013, July 9.

21. Yablon Ch., Landsman-Roos N. Predictive Coding: Emerging Questions and Concerns, S.C. L. REV., 2013, Vol. 633, No. 64.

22. McGinnis J. O., Wasick S. Law's Algorithm, Northwestern Univ. Sch. of Law Pub. Law & Legal Theory Series, 2013, available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2130085

23. Hanson F. A. From Key Numbers to Keywords: How Automation Has Transformed the Law, LAW LIBR. J., 2002, No. 94, pp. 563, 573.

24. L. Kolodny, Ventures K. Peter Thiel Back Legal Research Startup Judicata, WALL ST. J., 2013, May 28, available at: http:// blogs.wsj.com/venturecapital/2013/05/28/khosla-ventures-peter-thiel-back-legal-research-startup-judicata/

25. Jenkins J. What Can Information Technology Do for Law?, HARV. J.L. & TECH., 2008, No. 21, pp. 589, 597-604.

26. Fowler J. H. et al. Network Analysis and the Law: Measuring the Legal Importance of Precedents at the U.S. Supreme Court, POL. ANALYSIS, 2007, Vol. 15, pp. 324, 335.

27. Weisbord R. K. Wills for Everyone: Helping Individuals Opt Out of Intestacy, B.C. L. REV., 2012, Vol. 53, pp. 877, 918 n. 159.

28. Manjoo F. Will Robots Steal Your Job?: Software Could Kill Lawyers. Why That's Good for Everyone Else, SLATE, 2011, Sept. 29, available at: http://www.slate.com/articles/technology/robot_invasion/2011/09/will_robots_steal_your_job_5.html

29. Taibi C. It's All Over: Computers Are Now Writing Stories, and Doing a Good Job, HUFFINGTON POST, 2014, Mar. 18, available at: http://www.huffingtonpost.com/2014/03/18/la-times-robot-journalism-earthquake_n_4985929.html

30. Lohr S. In Case You Wondered, a Real Human Being Wrote This Column, N.Y. TIMES, 2011, Sept. 11, p. BU3.

31. Siegel E. Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die, 2013.

32. Lohr S. The Age of Big Data, N.Y. TIMES, 2012, Feb. 12, p. SR1.

33. Mayer-Schonberger V., Cukier K. Big Data: A Revolution That Will Transform How We Live, Work, and Think, 2013.

34. Katz D. M. Quantitative Legal Prediction - or - How I Learned To Stop Worrying and Start Preparing for the Data- Driven Future of the Legal Services Industry, EMORY L.J., 2013, Vol. 62, p. 909.

35. Ruger T. W. et al. The Supreme Court Forecasting Project: Legal and Political Science Approaches to Predicting Supreme Court Decisionmaking, COLUM. L. REV., 2004, Vol. 104, p. 1150.

36. Harbert T. Lex Machina Arms Corporate Leaders and Patent Attorneys with Predictive Analytics, DataInformed, 2012, June 6, available at: http://data-informed.com/lex-machina-arms-corporate-leaders-and-patent-attorneys-with-predictive-analytics/

37. Weninger R. A. Amended Federal Rule of Evidence 408: Trapping the Unwary, REV. LITIG., 2007, Vol. 26, pp. 401, 412 n. 25.

38. Kerr D. A. The Effect of Ownership Structure on Insurance Company Litigation Strategy, J. LEGAL STUD., 2005, Vol. 34, pp. 273, 276.

39. Landes W. M. et al. Judicial Influence: A Citation Analysis of Federal Courts of Appeals Judges, J. LEGAL STUD., 1998, Vol. 27, pp. 271, 275.

40. Rosen S. The Economics of Superstars, AM. ECON. REV., 1981, Vol. 71, pp. 845, 857.

41. Pearce R. G., Wald E. The Relational Infrastructure of Law Firm Culture and Regulation: The Exaggerated Death of Big Law, HOFSTRA L. REV., 2013, Vol. 42, pp. 109, 119.

42. Ellmann S. Client-Centeredness Multiplied: Individual Autonomy and Collective Mobilization in Public Interest Lawyers' Representation of Groups, VA. L. REV., 1992, Vol. 78, pp. 1103, 1139-1140.

43. Burke A. J. How IBM's Watson Will Advise Oncologists on Patient Care, TECHONOMY, 2014, Mar. 20, available at: http:// techonomy.com/2014/03/ibms-watson-will-advise-oncologists/

44. Marcus G., Davis E. Eight (No, Nine!) Problems with Big Data, N.Y. TIMES, 2014, Apr. 7, p. A23.

45. Adams R. Bloomberg Hangs Shingle: Financial-Data Firm Enters Legal Research, Challenging Westlaw, LexisNexis, WALL ST. J., 2010, July 8, p. B8.

46. Caon V. Permira Funds To Acquire $200m of LegalZoom Equity, INVESTMENT EUR., 2014, Jan. 7, available at: http:// www.investmenteurope.net/investment-europe/news/2321352/permira-funds-to-acquire-usd200m-of-legalzoom-equity

47. Fisher D. Google Jumps into Online-Law Business with Rocket Lawyer, FORBES, 2011, Aug. 11.

48. Barton B. H. A Glass Half Full Look at the Changes in the American Legal Market 17, Univ. of Tenn. Legal Studies Research Paper, 2013, No. 210, available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2054857

49. Ribstein L. E. The Death of Big Law, WIS. L. REV., 2010, Vol. 749, pp. 807-808.

50. Henderson W. Are We Asking the Wrong Questions About Lawyer Regulation?, TRUTH ON MARKET, 2011, Sept. 19, available at: http://truthonthemarket.com/2011/09/19/william-henderson-on-are-we-asking-the-wrong-questions-about-lawyer-regulation/

51. Campbell R. W. Rethinking Regulation and Innovation in the U.S. Legal Services Market, N.Y.U. J.L. & Bus., 2012, Vol. 9, No. 1, pp. 45-51.

52. Hadfield G. Legal Barriers to Innovation: The Growing Economic Cost of Professional Control Over Corporate Legal Markets, STAN. L. REV., 2008, Vol. 60, pp. 1689, 1720-1721, 1724-1725.

53. Remus D. A. The Uncertain Promise of Predictive Coding, IoWA L. REV., 2014, available at: http://works.bepress.com/ dana_remus/1/

54. Jackson D. W. Lawyers Can't Be Luddites Anymore: Do Law Librarians Have a Role in Helping Lawyers Adjust to the New Ethics Rules Involving Technology?, LAW LIBR. J., 2013, Vol. 105, pp. 395, 396.

55. Denckla D. A. Nonlawyers and the Unauthorized Practice of Law: An Overview of Legal and Ethical Parameters, FORDHAM L. REV., 1999, Vol. 67, pp. 2581, 2581.

56. Lanctot C. J. Scriveners in Cyberspace: Online Document Preparation and the Unauthorized Practice of Law, HOFSTRA L. REV., 2002, Vol. 30, pp. 811, 821.

57. Barton B. H. The Lawyer's Monopoly - What Goes and What Stays, FORDHAM L. REV., 2014, Vol. 82, pp. 3067, 3068.

58. Koppel N. Seller of Online Legal Forms Settles Unauthorized Practice of Law Suit, WALL ST. J., 2011, Aug. 23, available at: http://blogs.wsj.com/law/2011/08/23/seller-of-online-legal-forms-settles-unauthorized-practiced-of-law-suit/

59. Fisher D. Silicon Valley Sees Gold in Internet Legal Services, FORBES, 2011, Oct. 5, available at: http://www.forbes.com/ sites/danielfisher/2011/10/05/silicon-valley-sees-gold-in-internet-legal-services/

60. Barton B. H. Glass Half Full: America's Lawyer Crisis and Its Upside 135, 2014.

61. Terry L. S. The Legal World Is Flat: Globalization and Its Effect on Lawyers Practicing in Non-global Law Firms, Nw. J. INT'L L. & Bus., 2008, Vol. 28, p. 527.

62. Flood J. Will There Be Fallout from Clementi? The Repercussions for the Legal Profession After the Legal Services Act 2007, MICH. ST. L. REV., 2012, Vol. 537.

63. Pearce R. G. The Professionalism Paradigm Shift: Why Discarding Professional Ideology Will Improve the Conduct and Reputation of the Bar, N.Y.U. L. REV., 1995, Vol. 70, pp. 1229, 1238-1240.

64. Pearce R. G., Nasseri S. The Virtue of Low Barriers to Becoming a Lawyer: Promoting Liberal and Democratic Values, INT'L J. LEGAL PROF., 2012, Vol. 19, pp. 357, 365-366.

65. Hazard G. C., R. G. Pearce, Stempel J. W. Why Lawyers Should Be Allowed To Advertise: A Market Analysis of Legal Services, N.Y.U. L. REV., 1983, Vol. 58, pp. 1084, 1112-1113.

66. McGinnis John O., Pearce Russell G. The Great Disruption: How Machine Intelligence Will Transform the Role of Lawyers in the Delivery of Legal Services, Fordham Law Review, 2014, Vol. 82, pp. 3041-3066.