Wake Up Call: AI Use in Big Law’s Top Firms is a Balancing Act

Welcome to Bloomberg Law’s Wake Up Call, a daily rundown of the top news for lawyers, law firms, and in-house counsel.

• Big Law’s top firms are rapidly integrating generative AI into their operations to while trying to maintain a balance with strict controls around data security and responsible use. DLA Piper, Gibson Dunn, Sidley Austin, Ropes & Gray, and Morgan Lewis are piloting and deploying tools such as ChatGPT Enterprise, Harvey, CoCounsel, and custom language models for tasks like document review and compliance risk detection to administrative support and legal research. Each firm has its own evaluation process before adoption, often involving audits, testing, and training. (Business Insider)
• Smaller boutique law firms are gaining momentum as top lawyers exit Big Law, driven by increased demand for flexible billing, fewer conflicts, and freedom to take politically sensitive cases. Newly launched firms like Dunn Isaacson Rhee and Esseks Ingoglia are joining a growing list of boutiques founded by former partners at elite firms or government lawyers. (Reuters)
• Celebrity attorney Mark Geragos was ordered to pay $100,000 to a youth basketball coach for his role in a failed 2018 scheme to extort Nike. Gary Franklin had alleged that Geragos and disgraced lawyer Michael Avenatti undermined a potential $1.5 million settlement by demanding Nike pay them over $20 million for an internal investigation, threatening to expose misconduct in youth basketball. (Los Angeles Times)