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Generative A.I. + Law - A Year in Review

Generative A.I. + Law - A Year in Review

Generative A.I. + Law - A Year in Review - Including GPT Passes the Bar & Eleven Days that Defined the Year in (Legal) A.I.

Talk Delivered at The Legal Tech Fund Summit - TLTF Miami (2023)

December 4, 2023

Daniel Martin Katz

December 06, 2023
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  1. G E N E R AT I V E A

    . I . + L AW @ computational professor daniel martin katz danielmartinkatz.com Illinois tech - chicago kent law 273Ventures.com A Y E A R I N R E V I E W I N C LU D I N G G P T PA S S E S T H E B A R & E L E V E N DAY S T H AT D E F I N E D T H E Y E A R I N ( L E G A L ) A I https://bit.ly/3yxhY2e
  2. I THINK THIS DAY WILL GO DOWN AS A VERY

    IMPORTANT DAY IN THE HISTORY OF TECHNOLOGY
  3. BUT IT HAS BEEN HARD TO COMMUNICATE TO MANY FOLKS

    IN THE LEGAL AND RELATED SECTORS …
  4. SO NOW WE ARE JUST 12 MONTHS INTO ARGUABLY THE

    MOST SUCCESSFUL PRODUCT LAUNCH IN HISTORY …
  5. A ‘YEAR IN REVIEW’ THROUGH THE LENS OF ELEVEN DATES

    THAT HELPED DEFINED THE PRESENT AND FUTURE FOR OUR FIELD…
  6. GPT = IT IS A LARGE LANGUAGE MODEL (LLM) BUT

    FAR FROM THE ONLY ONE GENERATIVE PRE-TRAINED TRANSFORMER
  7. BETTER HARDWARE PARALLEL COMPUTING ATTENTION MECHANISM THE PATH TO MEGASCALE

    LARGE LANGUAGE MODELS HAS BEEN DRIVEN BY A MIXTURE OF
  8. THE SAME TECH THAT HAS POWERED HIGHLY IMMERSIVE GAMING HAS

    ALSO PUSHED SCIENCE FORWARD … https://www.thegamer.com/pc-games-best-intense-graphics/
  9. APRIL 5, 2023 NOT COMPARED DIRECTLY WITH THE H100 BUT

    THIS SHOWS YOU THE NATURE OF THE COMPETITION TAKING PLACE https://www.cnbc.com/2023/04/05/google- reveals-its-newest-ai-supercomputer- claims-it-beats-nvidia-.html
  10. WOULD TAKE 300 YEARS TO TRAIN EVEN GPT-3 ON A

    SINGLE GPU BUT WE TRANSFORMER ARCHITECTURE ALLOWS FOR SIGNIFICANT PARALLELIZATION
  11. TRAINED MODEL ON A BILLION PAIRS OF WORDS IN JUST

    3.5 DAYS ON EIGHT NVIDIA GPUS … THIS APPROACH HIGHLIGHTED A PATH TO THE PRESENT WITH EVER LARGER FUTURE https://blogs.nvidia.com/blog/2022/03/25/ what-is-a-transformer-model/
  12. SOME INPUTS TO GPT COMMON CRAWL WEBTEXT2 BOOKS1/2 WIKIPEDIA OPENAI

    LIKELY DID SOME SIGNIFICANT CLEANING / PREPROCESSING OF THESE SOURCES PRIOR TO TRAINING GPT-3 IS 175B PARAMETERS TRAINED WITH 499B TOKENS
  13. THE POINT HERE IS TO MAKE CLEAR THAT THERE ARE

    MANY STEPS AND MOVING PARTS …
  14. THERE ARE OTHER PLAYERS BESIDES OPENAI AND THEY WILL LIKELY

    PURSUE OTHER STEPS / MOVING PARTS … AND MANY MORE …
  15. TO BE INVOLVED IN THE LAUNCH OF GPT-4* *OBVIOUSLY WE

    ARE JUST PLAYING A VERY SMALL ROLE IN THE BIG PICTURE (BUT WE WILL TAKE IT!)
  16. CHATGPT BAR EXAM PASSES Paper Now Available on SSRN! March

    15, 2023 - Version 1.01 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4389233
  17. OBVIOUSLY THE BAR EXAM IS *NOT* THE ‘BE ALL END

    ALL’ BUT IT IS SOME MEASURE OF CAPABILITY
  18. BUT THE BROADER QUESTION IS HOW TO INDUSTRIALIZE THESE RAW

    CAPABILITIES WITHIN SPECIFIC LEGAL WORKSTREAMS / USE CASES
  19. OUR BAR EXAM ANALYSIS IS REALLY AN EVALUATION OF THE

    ‘OUT OF THE BOX’ CAPABILITIES OF GPT-4 (ALSO CALLED A ‘ZERO-SHOT’ ANALYSIS OF THE CAPABILITIES)
  20. ‘AD HOC PROMPT ENGINEERING’ ENTER PROMPT RECEIVE ANSWER ’PROMPT ENGINEERING’

    IS ABOUT TUNING / REFINING PROMPTS TO OBTAIN BETTER ANSWERS (HALF-SHOT)
  21. (1) DRAFT A BRIEF HERE DAMIEN RIEHL FROM VLEX WALKS

    THROUGH HOW TO BUILD MORE OF A BRIEF THROUGH SEQUENTIAL PROMPTING … HTTPS://WWW.LINKEDIN.COM/PULSE/CHATGPT- LEGAL-BRIEFWRITING-TOOL-DAMIEN-RIEHL/
  22. PARTICULARLY ON A GLOBAL BASIS — THE IDENTIFICATION AND ROUTING

    OF ALL OF THIS WORK IS A GOOD CANDIDATE FOR MACHINES …
  23. 1. IDENTIFY NEW REGULATIONS 2. IDENTIFY ANY IMPACTED INTERNAL POLICIES

    / PROCEDURES 3. IDENTIFY INDIVIDUAL / TEAM RESPONSIBLE FOR COMPLIANCE WITH NEW REGULATIONS 4. ISSUE TICKET TO THE INDIVIDUAL / TEAM TO UPDATE POLICY AND COMPLIANCE PLAN APPROXIMATE WORKFLOW FOR REGULATORY MONITORING** **NOTE: EXACT INTERNAL PROCESS MAY DIFFER BY ORGANIZATION
  24. THOSE ARE JUST A FEW MORE OF MANY OTHER POTENTIAL

    AREAS WHERE THIS CLASS OF TECH MIGHT BE USEFUL … AND MANY MANY OTHER EXAMPLES 6. E-DISCOVERY 7. DEALS DATABASES 8. LITIGATION MGMT 9. BUSINESS OF LAW 10. COMPLEX FINANCIAL DOCS
  25. ELEVEN DAYS THAT HELPED DEFINE THE PRESENT AND FUTURE FOR

    GEN (LEGAL) A.I. THE YEAR IN REVIEW
  26. FOR EACH OF THESE ELEVEN DATES, I WILL OFFER THOUGHTS

    ON THE IMPLICATIONS OF THESE DATES TO THE FUTURE OF (LEGAL) AI
  27. NOVEMBER 30, 2022 TWO DATES HIGHLIGHTED SO FAR #1 OF

    11 IMPLICATION GPT / LLMS GO MAINSTREAM
  28. IMPLICATION MARCH 15, 2023 #2 OF 11 GPT-4 IS A

    SERIOUS UPGRADE OVER PRIOR VERSIONS TWO DATES HIGHLIGHTED SO FAR
  29. NOT ONLY COMPETITION AMONG FOUNDATIONAL MODELS IMPLICATION BUT ALSO VERTICALIZED

    GPTS (E.G. LAW GPTS) (GPT, CLAUDE , GEMINI / BARD, ETC.)
  30. APRIL 6, 2023 INFO SEC, GEN AI POLICIES AND THE

    RISE PRIVATE INSTANCES #4 OF 11
  31. THE ROGUE ASSOCIATE (OR PARTNER) PASTING STUFF INTO GPT OR

    ANOTHER LLM MODEL LAW VERSION OF THE CONCERN
  32. FUD VS FEAR, UNCERTAINTY, & DOUBT FEAR OF MISSING OUT

    FOMO ORGANIZATIONS / INDIVIDUALS TOGGLE BETWEEN THESE TWO POINTS OF VIEW (SOMETIME WITHIN THE SAME CONVERSATION)
  33. FEAR / DOUBT IS ULTIMATELY GOING TO BE MANAGED AS

    THESE CAPABILITIES BECOME BAKED INTO ENTERPRISE GRADE OFFERINGS IMPLICATION
  34. IT IS IMPORTANT TO USE THESE TOOLS (AT LEAST FOR

    NOW) AS PART OF A HUMAN IN THE LOOP PROCESS
  35. ONE WAY TO DRAMATICALLY REDUCE THE LIKELIHOOD OF A HALLUCINATION

    IS TO ANCHOR OUTPUT AGAINST SOME ‘GROUND TRUTH’ …
  36. ONE SHOT ENHANCE THIS QUERY USING CONTEXTUALLY RELEVANT INFORMATION ORIGINAL

    QUERY OUTPUT* (RETRIEVAL AUGMENTATION) (COULD BE CONSTRUCTED ON VIA ‘PROMPT ENGINEERING’) ENTERED INTO A FOUNDATIONAL MODEL (VARIOUS TECHNIQUES ARE POSSIBLE SUCH AS USING EMBEDDINGS AND STORED IN A VECTOR DATABASE) ( QUERY & CONTEXTUAL INFO) REVISED QUERY **NOTE OUTPUT CAN BE FURTHER ENHANCED IN FEW SHOT EXAMPLES
  37. LAYERS OF ENGINEERING ON TOP OF LLMS IS KEY TO

    TRULY UNLOCK COMPLEX VERTICALS LIKE LAW IMPLICATION
  38. EVERY STARTUP IN THIS ROOM OWES A DEBT OF GRATITUDE

    TO CASETEXT FOR SETTING A FAIRLY LARGE PUBLIC NUMBER
  39. MORE BROADLY, I THINK MANY LEGACY LEGALTECH PROVIDERS ARE GOING

    TO NEED HELP ON THEIR GEN AI TRANSITION
  40. EVENTUALLY SOME WILL GIVE UP ON THEIR HALF BAKED INTERNAL

    EFFORTS AND SEEK TO INNOVATE VIA ACQUISITION
  41. OPEN SOURCE LLMS ARE IN A SERIOUS HORSE RACE WITH

    OPENAI, ETC. IMPLICATION SIGNIFICANT IMPLICATIONS FOR INVESTMENT, ENGINEERING, ETC.
  42. BIG PICTURE HERE IS A BRAND NEW STUDY WHICH HIGHLIGHTS

    BOTH THE POTENTIAL PRODUCTIVITY AND QUALITY GAINS IN PROFESSIONAL SERVICES
  43. “Our study conducted with Boston Consulting Group, a global management

    consulting fi rm, we examine the performance implications of AI on realistic, complex, and knowledge- intensive tasks. … [The] experiment involved 758 consultants … subjects were randomly assigned to one of three conditions: no AI access, GPT-4 AI access, or GPT-4 AI access with a prompt engineering overview. For each one of a set of 18 realistic consulting tasks within the frontier of AI capabilities, consultants using AI were signi fi cantly more productive (they completed 12.2% more tasks on average, and completed tasks 25.1% more quickly), and produced signi fi cantly higher quality results (more than 40% higher quality compared to a control group).” https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4573321
  44. AND REMEMBER THIS STUDY ONLY CONSIDERS GPT-4 WITH PROMPTING IMPLICATION

    GREATER PERFORMANCE WILL FOLLOW WHEN ENGINEERING ENHANCEMENTS ARE ADDED SIGNIFICANT QUALITY AND EFFICIENCY RESULTS
  45. WHAT IS THE PRODUCT VALUE ADD OVER BASELINE CAPABILITIES? TRUST

    BUT VERIFY THERE IS GOING TO BE SIGNIFICANT PRESSURE ON LEGAL TECH COMPANIES TO OVERSTATE THE ACTUAL CONTRIBUTION OF THEIR OFFERING ABOVE JUST AN LLM API CALL I SUGGEST YOU TRUST BUT VERIFY ALL CLAIMS
  46. IMPLICATION MORE INNOVATION MORE DISRUPTION MORE NEED FOR ADAPTATION AND

    THIN PRODUCTS BUILT ON GPT WILL LIKELY NEED TO PIVOT …
  47. K-LLMS WHERE K IS SOME NUMBER GREATER THAN ONE THIS

    WAS ALWAYS GOING TO BE ABOUT MIXING AND MATCHING MODELS (FANCY WAY TO SAY MIX AND MATCH MODELS)
  48. IMPLICATION COMPANIES NEED TO BE ABLE TO ADAPT AS TECH

    LANDSCAPE RAPIDLY EVOLVES COMPANIES WITH A SINGLE SOURCE LLM STRATEGY ARE AT REAL RISK
  49. SO FAR I HAVE MENTIONED TEN OF THE DATES THAT

    WILL HELP DEFINE THE FUTURE FOR OUR FIELD…
  50. APRIL 6, 2023 JUNE 26, 2023 JULY 18, 2023 NOVEMBER

    6, 2023 NOVEMBER 17, 2023 MARCH 30, 2023 SEPTEMBER 15, 2023 MAY 27, 2023 SAM ALTMAN FIRED OPEN AI DEV DAY LLAMA 2 RELEASE HBS STUDY RELEASE CASETEXT + TR DEAL NY CHATGPT LAWYER BLOOMBERG GPT RELEASE SAMSUNG CODE INCIDENT SUMMARY OF TEN KEY DATES FOR THE YEAR MARCH 15, 2023 GPT-4 RELEASE DAY NOVEMBER 30, 2022 CHATGPT RELEASE DAY
  51. HIGHLIGHTS AI SUPPLY CHAIN RISKS OPEN SOURCE MODELS MIGHT WIN

    BIG GAINS IN PROFESSIONAL SERVICES MORE M&A ACTIVITY TO FOLLOW NEED LAYERS ON TOP BASE MODELS BLOOMBERG GPT SAMSUNG INCIDENT GPT-4 RELEASE 11.30.22 CHATGPT RELEASE GPT GOES MAINSTREAM 3.15.23 3.30.23 RISE OF VERTICALIZED LLMS GPT-4 IS A SERIOUS UPGRADE 4.06.23 ENTERPRISE DEPLOYMENT NEEDED SAM ALTMAN FIRED OPEN AI DEV DAY LLAMA 2 RELEASE HBS STUDY RELEASE CASETEXT + TR DEAL NY CHATGPT LAWYER TEN DAYS AND THEIR IMPLICATIONS 5.27.23 6.26.23 7.18.23 9.15.23 11.6.23 11.17.23 AGENTS - MORE INNOVATION COMING
  52. BUT I THINK YOU ALREADY KNOW THE ELEVENTH DAY THAT

    IS GOING TO DEFINE THE FUTURE …
  53. NO DOUBT THIS HAS BEEN THE MOST EXCITING YEAR IN

    TECHNOLOGY IN A VERY LONG TIME
  54. G E N E R AT I V E A

    . I . + L AW @ computational professor daniel martin katz danielmartinkatz.com Illinois tech - chicago kent law 273Ventures.com Y E A R I N R E V I E W I N C LU D I N G G P T PA S S E S T H E B A R & E L E V E N DAY S T H AT D E F I N E D T H E Y E A R I N ( L E G A L ) A I https://bit.ly/3yxhY2e