AI × Law

King & Spalding is hiring an Innovation Attorney to integrate generative AI and other legal technologies into its regulatory practice. This role aims to optimize legal workflows, enhance client engagement, and serve as a liaison between lawyers, clients, and the firm's technology department.

Epstein Becker Green has introduced an interactive map that tracks enacted state AI laws across three policy domains, offering a valuable resource for legal professionals to monitor legislative developments continuously.

Eve, which provides AI tools for plaintiff law firms across all case stages, has raised more than $160 million from investors including Spark Capital, Andreessen Horowitz, Menlo Ventures, and Lightspeed. The company reports serving over 1,000 law firms and achieving 2x quarterly revenue growth, highlighting significant investment and adoption in the legal AI sector.

ArentFox Schiff introduced "FoxAI," a multi-tool approach to integrate AI into legal workflows, emphasizing secure data, mandatory attorney training, and continuous evaluation of third-party platforms. The initiative aims to enhance client service across sectors like sports, fashion, real estate, and nonprofits.

Lexitas, a litigation support services provider, has been named to the Inc. 5000 for the tenth time due to its sustained revenue growth. The company is expanding its portfolio of proprietary technology and AI-enabled products, such as Deposition Insights and Record Insights, to streamline litigation workflows and provide legal professionals with enhanced intelligence.

Formed in January 2026, Norm Law, an offshoot of AI company Norm Ai, has grown to 25 lawyers, attracting talent from elite firms like Kirkland and Sidley. The firm offers outcome-based pricing to institutional clients, challenging the traditional billable hour model of Big Law, and is backed by $260M in funding for its parent company.

Global venture capital reached $227.4 billion in Q2 2026, with AI driving many of the largest financings, such as Anthropic's $65 billion raise. Investors focused on various AI sectors, notably including legaltech.

Venture capital firm Accel announced it has raised $3.5 billion across four new funds dedicated to early-stage investments, with a focus on emerging AI companies worldwide. This significant capital infusion signals continued strong investor confidence in the AI startup ecosystem, potentially fueling new legal tech innovations or AI-driven companies that may impact the legal sector.

Pandektes, a Danish legal AI startup, secured €2.9 million in seed funding from People Ventures, Interface Capital, and Nordic business angels. The investment will fuel the expansion of its AI-driven legal research platform, which unifies European legal sources into a cross-jurisdictional database, aiming to build the largest legal database in Europe.

Stockholm-based Aloi raised €6 million to scale its AI platform, which transforms a company's legal data into structured intelligence, helping legal teams leverage their institutional knowledge for drafting and negotiation. The company emphasizes security, operating with ISO/IEC 27001:2013 and SOC 2 Type II certifications.

Cravath, Swaine & Moore LLP has established a new AI practice group, combining legal expertise with understanding of next-generation AI systems. The group will provide integrated, risk-based solutions for clients building, investing in, and operationalizing AI, addressing advisory, regulatory, transactional, and litigation needs.

Relativity announced claiR, a conversational AI interface allowing lawyers to ask plain-language questions across an entire RelativityOne matter and receive cited answers. The product, designed for practicing lawyers rather than just e-discovery specialists, will launch through an Advanced Access program with A&O Shearman, Foley & Lardner, and K&L Gates, with general availability expected early next year. claiR integrates with existing RelativityOne data, avoiding the need to move sensitive information to external AI environments.

A Northern District of California court in Schulte v. Linkedin permitted the use of generative AI (Relativity aiR) to make final responsiveness decisions in document review, subject to human quality control, and denied requests for detailed AI metrics. This decision signals judicial acceptance of AI replacing first-level attorney review, while emphasizing proportionality and the importance of ESI protocols.

A Quebec Supreme Court judge annulled an arbitral award after discovering the arbitrator used AI to generate legal citations that were either fabricated or misattributed. The court emphasized the need for human oversight and verification when AI tools are used in legal proceedings, concluding that the arbitrator effectively delegated their decision-making role to the AI.

Satirical news site Babylon Bee is challenging a New Mexico law requiring disclaimers on AI-generated political satire, arguing it violates the First Amendment. This follows a successful challenge by the Bee against a similar AI deepfake law in Hawaii earlier this year.

YouTube will notify users if their faces appear in deepfake videos, a new measure in partnership with Brazil’s electoral court to combat AI-generated misinformation ahead of the October election. This initiative allows users to request removal of unauthorized deepfake content.

A class action lawsuit alleges ZoomInfo misled investors regarding the impact of its AI-integrated products on customer retention. The suit claims that contrary to company statements, customer retention declined as clients rejected ZoomInfo's AI offerings, leading to a 33% stock drop and revised revenue guidance.

In 2023, AI-related securities class actions represented 73% of both the DDL and MDL indices, totaling $1.3 trillion. Two AI filings alone accounted for $1.2 trillion, or 66%, of the MDL Index, highlighting a significant increase in AI-related litigation risk for companies.

XAI is urging a California federal judge to reject OpenAI's request for over $1 million in attorney fees, arguing that its unsuccessful trade secret lawsuit was not frivolous given evidence that former employees took confidential company information. This case highlights the legal battles emerging between prominent AI companies over intellectual property and employee conduct.

A Texas federal magistrate judge recommended denying SAP's motion to dismiss or transfer a trade secret lawsuit filed by AI supply-chain firm o9 Solutions Inc. SAP failed to prove the Netherlands would be a "clearly more convenient" forum, affirming the plaintiff's choice of the US District Court for the Northern District of Texas.