"Software ate the world. Now AI is eating software, and in the world of legal technology, Thomson Reuters is trying to stay off the menu. The company runs one of the largest hoards of legal data on the planet. It's combining this information trove with generative AI to offer new products, such as Westlaw Advantage and CoCounsel, that help automate legal work."
"The strategy was a hit with investors earlier this year, but since the summer, new rivals have grown bigger, bringing questions about Thomson Reuters' AI future. A potentially more troubling question: Can CoCounsel produce legal intelligence that's better than what ChatGPT and existing big AI models can already provide? In essence, is Thomson Reuters working on a " model wrapper," or something with more enduring value?"
"The company made its pitch on Tuesday when it reported quarterly results, and the response from Wall Street was tepid at best. Thomson Reuters shares fell more than 6%, leaving them down more than 30% since mid-July. The Toronto-based company said its legal unit grew organic revenue 9% to $700 million, up from 8% growth in the first half of the year. AI features drove "double-digit growth" across its CoCounsel products."
Thomson Reuters combines a vast legal database with generative AI to create products such as Westlaw Advantage and CoCounsel that automate research, analysis, and drafting. CoCounsel and related AI features have driven reported double-digit usage growth and contributed to a 9% organic revenue increase in the legal unit to $700 million. Market reaction to quarterly results was muted, with shares falling more than 6% and down over 30% since mid-July. New entrants, including potential OpenAI moves into legal tech, raise doubts about whether CoCounsel offers substantive model-level advantage beyond a model wrapper and whether Thomson Reuters can sustain differentiation.
Read at Business Insider
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