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AI × Law
Hand-picked, bite-sized developments in AI and the law: lawsuits and rulings, funding and startups, and how Big Law and in-house teams are moving on AI.
In a proposed copyright class action against AI developers, authors asked a California federal judge to permit expert testimony that relied on an LLM to prove model memorization. Separately, a Nevada magistrate judge denied the government extra time to respond after an expert used AI to refine a report's grammar, ruling the delay was untimley.
In Pooja Ramesh Singh v. Jammu and Kashmir Bank Ltd, the Supreme Court of India set aside lower tribunal orders that relied on fabricated, AI-generated legal precedents. The court ruled that decisions based on fake citations are void under the law and directed the Bar Council of India to address the professional ethics of citing hallucinated authorities.
At ILTACON, Google Cloud launched Gemini Enterprise for Legal alongside major upgrades from incumbents, including Thomson Reuters' new proprietary legal LLM and LexisNexis's agentic orchestration engine. Additionally, a pending California bill could impact legal AI adoption by prohibiting attorneys from delegating the practice of law to generative AI.
Wolters Kluwer added an agentic AI feature to its TyMetrix 360° platform to help corporate legal departments compare law firms. The tool evaluates panel firms across billing guideline compliance, budget adherence, staffing ratios, and rates.
Lithuanian intellectual property startup EnforceShield has raised €1.7 million in seed funding led by Vendep Capital, with participation from FIRSTPICK VC. Founded by an IP attorney, the company provides an AI-powered platform to detect IP infringement and initiate takedown requests.
Legal AI platform Legora is expanding beyond core tasks by introducing a legal research database and an AI citator set for release in Q4. The offering leverages data from publishers like Wolters Kluwer alongside technology from its acquisition of research startup Qura.
Apple shareholder Phil Rosen has sued the company in a derivative capacity, alleging executives breached their duties by using unlicensed copyrighted works to train AI models. The suit claims Apple's use of data sets like Books3 exposes the company to potential statutory damages exceeding $30 billion.
Legal AI startup Legora is hiring former attorneys to build its own database of primary legal authorities and digitize citable case law. By licensing content and scanning public records, the company aims to reduce AI hallucinations and position itself as a direct competitor to traditional legal research incumbents.
AI due-diligence provider Xapien has secured $56 million in a Series B funding round. The investment highlights continued capital flow into specialized AI platforms used for legal and corporate background research.
Courts are increasingly forced to deal with AI-generated audio and video evidence, highlighted by a California case, Mendones v. Cushman & Wakefield, where a lawsuit was dismissed for submitting deepfake exhibits. Legal experts advise litigators to routinely request metadata, use reverse image searches, and scrutinize digital evidence as traditional authentication standards fall short.
A dataset of over 100 U.S. AI copyright lawsuits reveals a shift away from broad training challenges toward specific claims regarding pirated source material, DMCA violations, and substitutive outputs. Courts are increasingly separating model-training fair use from the acquisition methods and content retrieval of AI developers.
The 2026 International Legal Technology Association (ILTA) survey of over 500 law firms shows that 94% are using or exploring generative AI. Microsoft 365 Copilot emerged as the most widely used tool at 76%, while Anthropic's Claude and Thomson Reuters CoCounsel tied with Harvey for second place at 44% and 43% respectively.
A new global survey from KPMG found that a majority of general counsel rank AI implementation as their top operational priority. Additionally, three-quarters of GCs report being regularly asked to advise on nonlegal business issues as their influence over corporate strategy grows.
Legora has launched a new AI-native legal research technology designed to assist lawyers and AI agents in identifying and analyzing relevant legal authorities. The tool helps users understand how precedent and authorities relate to one another.
As courts continue to sanction attorneys for submitting fake AI-generated case citations, new legal tech tools like Cite Sentinel and Clearbrief are targeting the hallucination issue. These platforms scan filings to verify case law, statutes, and citations before documents are submitted to judges or opposing counsel.
DocStyle has announced DocStyle AI, enabling legal professionals to perform document formatting, structuring, and repair using plain-language instructions inside Word or Claude. Built on the open Model Context Protocol, the tool processes document content locally to limit exposure to external AI providers.
Plaintiff giant Morgan & Morgan announced a $1 billion commitment over the next decade toward legal technology and AI, building on $300 million spent over the last five years. The firm also formally unveiled MX2, an in-house platform featuring agentic workflows, medical record extraction, and automated document drafting.
UK-based AI due-diligence platform Xapien has raised £56 million in Series B funding. The platform automates background research and due diligence processes for legal and corporate professionals.
Specialized legal-AI startup Patlytics now works with roughly 55 percent of the Am Law 100 and hundreds of corporations across technology and life sciences. Co-founder Paul Lee highlighted how IP professionals are using purpose-built AI workflows for patent drafting, office action responses, and litigation claim charts.
The LegalTech Fund has launched the LegalTech Lab, an accelerator aimed at backing 'Law Firm 2.0' startups that leverage AI and fixed-fee structures. The program offers participating legaltech startups up to $250,000 in funding alongside mentorship and strategic partner access.
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