Scott Mozarsky Of Bloomberg BNA, On Technology, Big Data And Analytics Disrupting The Legal Sector

In November 2016, Scott Mozarsky was appointed the president of Bloomberg BNA’s Legal Division. Replacing David Perla at the helm, Mozarsky has experience on both sides of the table – in-house and outside counsel – and brings with him unique and comprehensive legal experience from which to continue the growth of Bloomberg’s terminal-type research model.

In our Q&A below, Mozarsky broaches the impact that technology, bigdata, and analytics are having on outside counsel retention, the business of law, the legal research industry, and more. Please see a revised and edited version of our exchange below:

Parnell: My understanding is that Bloomberg L.P. entered the legal market with a vision of disrupting the legal market as it did the financial market with the Terminal. How does a “Terminal-type model” advance the legal industry?

Mozarsky: The various platforms and other vendors who have serviced the legal industry have historically been siloed. Throughout the day, attorneys and others in the ecosystem had to use multiple platforms to engage with the data and content that they need to do their jobs well. A Terminal-type model involves integrating deep and broad legal, financial and business content, data, news, resources, tools and analytics into one workflow platform that attorneys and others use throughout the day whether they are focusing on research, business development or competitive intelligence. Ultimately this enables firms to better collaborate with and serve their clients. Additionally, the Terminal model, in which subscribers pay one annual price, enables firms to leverage technology as frequently as they wish and to capitalize on added functionality and data sets without fear of costs spiraling out of control.

On Technology Impacting The Legal Research Industry

Parnell: The multi-billion-dollar legal research industry was for many years effectively a duopoly. How are technology, analytics, and big data disrupting this market? Is there an inflection point?

Mozarsky: Similar to the news distribution industry that I worked in prior to coming over to Bloomberg, which for decades was dominated by PR Newswire and Business Wire, the legal research and technology industry was dominated for a number of years by two companies. That is no longer the case. Similar to the pattern that the news distribution industry experienced, the combination of disruption driven by technology and globalization with clients demanding more innovative solutions, has provided an opportunity for competitors, such as our Bloomberg Law platform, to build rapidly growing businesses that enable clients to change the way that they practice, seize opportunities and respond to challenges. Disruption driven by technology, globalization, new compliance demands and shrinking in-house counsel budgets is reshaping the industry. Research is becoming more commoditized. Content and data are still incredibly important, but the real value to clients is in the technology, tools, and analytics that enable them to draw actionable insights from this content and data. Clients see value in Bloomberg Law and some of the newer niche platforms that have come to market, but it is neither practical nor cost efficient for attorneys to work on multiple platforms throughout the day. This will ultimately drive acquisition activity but that will only really benefit the clients if the platforms are integrated, which historically has not happened.

On Information That The Market Is Interested In

Parnell: What types of information, specifically, do you see an interest in from the market?

Mozarsky: There is always going to be a need for primary and secondary sources related to the practice of law. So, case law, statutes, treatises, resources and news continue to be valuable. The shift in client demand is towards integrating legal, financial and business data and applying analytics against them in order to better serve clients, develop more business in a commoditized legal services market, or choose outside counsel more wisely. Aggregating and curating news, financial data and competitive information about clients and prospects into dashboards that provide a holistic view are invaluable as are real-time updates through dockets and news feeds that monitor in real time when legal actions are brought against companies or when there are material business developments.

As the legal services industry has become more commoditized – there are a lot of good lawyers out there – firms are differentiating themselves by becoming more consultative and strategic. In order to do so, they need to be able to truly understand their clients’ businesses and markets, so deeper research and analytics is something that firms are demanding.

On The Future Of Competitive Information

Parnell: In a market where information is becoming more and more ubiquitous, and in many cases free, what is the future/trajectory of the market for competitive information arbitrage? Is there a shift more toward proprietary analytics rather than aggregation, for instance?

Mozarsky: There is absolutely a shift towards proprietary content and analytics. Aggregation and curation can be useful but as information is more readily accessible and dashboards and targeted newsletters are that much easier to launch, the real differentiator is unique content and data and, of course, the tools that allow clients to drive insights and analytics from that content and data.

For the business of law, this includes original data coming out of research and surveys regarding issues that range from buying trends and procurement and pricing to attorney representation analytics and company information that enable firms and their clients to better determine which firms are representing which clients and where firms are differentiated by expertise. For the practice of law, there are so many regulatory developments as a result of the new administration that news and timely insights and research are particularly valuable for firms to keep their clients up to speed. Data visualization and proprietary analytics are increasingly valuable in helping firms present more compelling and understandable data to clients.

Read full article on Forbes Business here…

The Race For AI: Google, Twitter, Intel, Apple In A Rush To Grab Artificial Intelligence Startups

Corporate giants like Google, IBM, Yahoo, Intel, Apple and Salesforce are competing in the race to acquire private AI companies, with Ford, Samsung, GE, and Uber emerging as new entrants. Over 200 private companies using AI algorithms across different verticals have been acquired since 2012, with over 30 acquisitions taking place in Q1’17 alone (as of 3/24/17). This quarter also saw one of the largest M&A deals: Ford’s acquisition of Argo AI for $1B.

In 2013, Google picked up deep learning and neural network startup DNN research from the computer science department at the University of Toronto. This acquisition reportedly helped Google make major upgrades to its image search feature. In 2014 Google acquired British company DeepMind Technologies for some $600M (Google’s DeepMind program recently beat a human world champion in the board game “Go”). Last year, it acquired visual search startup Moodstock, and bot platform More recently, in Q1’17, Google acquired predictive analytics platform Kaggle.
Apple has been ramping up its M&A activity, and ranked second with a total of 7 acquisitions. It recently acquired Tel Aviv-based RealFace, valued at $2M. Intel, Microsoft, and Facebook are tied for third place. Intel acquired 3 startups in 2016 alone: Itseez, Nervana Systems, and Movidius, while Facebook acquired Belarus-based Masquerade Technologies and Switzerland-based Zurich ye recently. Microsoft recently acquired Genee and conversational AI startup Maluuba.
Twitter is the next most-active acquirer, with 4 major acquisitions, the most recent being image-processing startup Magic Pony. Salesforce, which joined the race in 2015 with the acquisition of Tempo AI, made two major acquisitions last year: Khosla Ventures-backed MetaMind and open-source machine-learning server PredictionIO. GE made 2 acquisitions in November 2016: AI-IoT startup Bit Stew Systems, and CRM-focused

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Bot.Me: A revolutionary partnership – How AI is pushing man and machine closer together

With a market projected to reach $70 billion by 2020, artificial intelligence is poised to have a transformative effect on consumer, enterprise, and government markets around the world. While there are certainly obstacles to overcome, consumers believe that AI has the potential to assist in medical breakthroughs, democratize costly services, elevate poor customer service, and even free up an overburdened workforce.
Some tech optimists believe AI could create a world where human abilities are amplified as machines help mankind process, analyze, and evaluate the abundance of data that creates today’s world, allowing humans to spend more time engaged in high-level thinking, creativity, and decision-making.
Based on our research into consumers, experts, and business execs, here’s how we think AI will amplify our world:
Amplifying society:
Humans 2.0
Despite the way the film industry and news media portray AI, most consumers see the potential for good. 63% agree AI will help solve complex problems that plague our society and 59% believe it will help people live more fulfilling lives. On the other hand, only 46% believe AI will harm people by taking away jobs and 23% believe it will have serious, negative implications. AI has the potential to become a great equalizer. More than half of consumers believe AI will provide educational help to disadvantaged schoolchildren. Over 40% also believe AI will expand access to financial, medical, legal, and transportation services to those with lower incomes. Consumers also see the value in sharing their personal information for the greater good: 62% would share their data to help relieve traffic in their cities and 57% would do so to further medical breakthroughs.

Amplifying service:
Cyborg concierge
Every year, $62 billion is lost through poor customer service—a loss that continues to increase with every passing year. AI can help plug that leak by going above and beyond what humans are able to do. It could shift today’s run-of-the-mill standard to a personalized, digital concierge run by man but with the heavy lifting done by machine.

Consumers want it all
As the line between humans and bots becomes more blurred so too do consumer preferences for customer service. 35% said their biggest concern with AI customer service was a loss of human touch. They’re looking for the best of both worlds. In fact, 43% of millennials and 28% of business execs, identified as managers or influencers in their fields, would pay a premium for a hybrid service run by AI that offers direct access to humans, versus a human-only service.

The potential for quicker and more efficient transactions interests consumers the most:
agree that AI can reduce the time it takes to get answers while still being highly tailored to their preferences.
agree that AI can offer a “superior one-to-one personalized experience.”

Amplifying management: The augmented c-suite
In the business world, disruption has become the norm. Global markets are volatile or uncertain at best, talent turnover is a force to be reckoned with, and workweeks can be expected to regularly exceed 70 hours. Management needs more efficiency and innovations to keep up. AI has the potential to optimize proccesses across organizations. And businesses are betting big: 54% of business and IT execs in our Digital IQ survey tell us their companies are making substantial investments today; in three years, that number jumps to 63%.

Amplifying management: The augmented c-suite
In the business world, disruption has become the norm. Global markets are volatile or uncertain at best, talent turnover is a force to be reckoned with, and workweeks can be expected to regularly exceed 70 hours. Management needs more efficiency and innovations to keep up. AI has the potential to optimize proccesses across organizations. And businesses are betting big: 54% of business and IT execs in our Digital IQ survey tell us their companies are making substantial investments today; in three years, that number jumps to 63%.
Business execs also see potential for AI managers to improve life for employees. The majority believe employees wouldn’t mind working with an AI manager if it meant more flexibility and freedom to work from home (71%) and if it meant a more balanced workload (64%). 70% agree that AI has the potential to enable humans to concentrate on meaningful work, as well as indulge in more leisure activities.
67% of business execs believe leveraging AI will help humans and machines work together, leveraging both artificial and human intelligences in the best way possible. This combined man-machine hybrid is more powerful than either entity on its own.

Conclusion: Embrace the revolution
AI, as a true change agent, is coming, and in many ways, its early rumblings are already being felt. It’s clear that some people will eagerly adopt and integrate the new tools and ways of working it makes possible, while others will be more cautious or even oppose the changes it brings to their life or work.
An open mind will be the biggest asset in the near future, as the technology advances and we continue to experiment with how to use AI to solve problems—in our personal lives, professional lives, and society at large. Those who think practically and critically will ride the waves of these advancements instead of being left behind.

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Data acquisition critical to Artificial Intelligence growth – report forecast global AI to grow at a CAGR of 50.51% during the period 2017-2021

The Research and Markets “Global Artificial Intelligence Market 2017-2021” report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

The latest trend gaining momentum in the market is growing popularity of swarm AI technology. After analysis and introspection, engineers and scientists have tried to adapt automation to highly efficient patterns observed in nature. Worker ants are considered as efficient workers and efficient team members. They execute all tasks in a focused manner while maintaining constant communication.

According to the report, one of the major drivers for this market is growing adoption of deep learning technology. The deep learning technology is one of the advanced versions of AI technologies, which is attempts to mimic the functioning and activity of the human brain. It is capable of learning to recognize patterns of sounds, images, and other data.

Further, the report states that one of the major factors hindering the growth of this market is challenges in developing AI technologies. AI-based technologies, such as deep learning, require large amounts of data as their knowledge base to interpret real-time data and make decisions. Acquisition of this data itself is a difficult process and may even be unethical sometimes.

Vendors included in the report: Amazon Web Services, IBM, Siemens, Omron Adept Technologies, AIBrain, Anki, Apple, Banjo, CloudMinds, Facebook, Google, iCarbonX, Intel, Jibo, Microsoft, Next IT and NVIDIA.

Read report details here….

Evolve or die: From controlling 90% of the market and $16 billion in revenues to bankruptcy – has Artificial Intelligence already begun the death of your business?

Will Artificial Intelligence do the same for you? Following are excerpts from The Center for the Study of the Legal Profession at the Georgetown University Law Center and Thomson Reuters Peer Monitor 2016 Report on the State of the Legal Market. The report is focused on the legal profession but seems appropriate for a myriad of industries and the answer to the question is: without a doubt, entire industries are facing a dilemma, adopt or die.
In the annals of American business, few firms were as successful for as long as the Eastman Kodak Company. Founded by George Eastman (the inventor of roll film) in 1880, Kodak introduced its first camera in 1888 with the memorable slogan: “You press the button, we do the rest.” For a century thereafter, Kodak dominated the market for cameras and film in the United States and much of the world. It revolutionized society by making it possible for ordinary people to record the key events of their lives – events later even rebranded as “Kodak moments” – by removing photography from the exclusive domain of professionals.
By 1976, Kodak controlled 90 percent of the film market and 85 percent of the camera market in the U.S. Until the 1990s, it was regularly rated as one of the world’s five best known and most valuable brands. In 1988, at its peak, Kodak employed over 145,000 workers worldwide. Its annual revenues peaked at nearly $16 billion in 1996 and its profits at $2.5 billion in 1999.
The strategy that propelled Kodak to its long-term success was the “razor blade” business model. Just as Gillette makes money on the blades and not the razors, Kodak sold cheap cameras and relied on customers buying lots of expensive film. That strategy worked fine in the age of print photography when Kodak could control 80 percent of the market for the chemicals and paper used to develop and print photos. But it was not a strategy for success in an age of digital photography. In the 1990s, Kodak dragged its feet on entering the digital market in a serious way. When it did decide to get into the game, it was too late, having lost key market advantage to more nimble competitors like Sony and Canon.
History, of course, has many examples of well-established companies being blindsided by technological developments that oust them from their positions of market leadership. And if that were the whole story with Kodak, it would be just another sad though familiar tale. In the case of Kodak, however, the story is much more interesting because the new technology that ultimately destroyed the company was invented at Kodak itself! In the mid-1970s, Steve Sasson, a young electrical engineer working at Kodak, assembled a system of electronic components that could capture an image and display it on a screen. In December 1975, Sasson and chief technician Jim Schueckler conducted the first successful test of a digital camera in Kodak’s labs. While the first camera was fairly crude by today’s standards, its technical significance was plainly understood by the company.
Nonetheless, management response was tepid. As Mr. Sasson put it, “They were convinced that no one would ever want to look at their pictures on a television set. Print had been with us for over 100 years, no one was complaining about prints, they were very inexpensive, and so why would anyone want to look at their pictures on a television set?” In addition, it was not lost on company management that pursuit of digital photography would, of course, seriously undercut Kodak’s lucrative film business, and that digital photography itself would not be as profitable. As a consequence, Kodak essentially chose to ignore the fundamental shift in its market – until it was too late. Today, the first digital camera made by Mr. Sasson in 1975 is on display at the Smithsonian’s National Museum of American History. President Obama awarded Mr. Sasson the National Medal of Technology and Innovation at a White House ceremony in 2009, and three years later, Kodak filed for bankruptcy.
This story of the demise of Kodak is an important cautionary tale for law firms in the current market environment. Since 2008, the market for law firm services has changed in significant and permanent ways. Clients who previously deferred to their outside firms on virtually all key decisions regarding the organization, staffing, scheduling, and pricing of legal matters are now, in most cases, in active control of all of those decisions. Increasingly, clients are demanding more “value” in return for their legal spend, and by value they mean greater efficiency, predictability, and cost effectiveness in the delivery of legal services. What once was a seller’s market has now clearly become a buyer’s market, and the ramifications of that change are significant. Clients today are more willing than ever before to disaggregate matters, combining the services of several different service providers in order to achieve increased efficiencies. They are more open than ever before to utilizing non-traditional service providers (including non-law firms) to provide a wide range of services previously obtained almost exclusively from law firms. And clients are far more likely today to retain work in-house, bringing their outside counsel in only where needed to supply specialized expertise or to handle matters on a discrete project-by-project basis.
Access the Georgetown University Law Center and Thomson Reuters Peer Monitor 2016 Report on the State of the Legal Market here…

Artificial Intelligence – is it about to change my industry?

A couple of months ago, 60 minutes ran a segment on IBM Watson’s healthcare initiative and more specifically, the initiative on oncology. The segment was eye opening and the realization that the next huge influence on major industries is left the dock and on its way to major disruption in fields such as Healthcare, Law, Finance and more is much more advanced than most people know. I now bring up AI as Artificial Intelligence is known to those involved from time to time only to find a puzzled look on many faces. My best guess is that to a lot of people this is a “smart” thing to claim to understand when they have no idea of what is really happening.
I went to a trusted pal, LinkedIn, to do some very superficial research: a search for IBM Artificial Intelligence returns over 10,000 contacts; Google 6,500 contacts; Intel 3,000 contacts; Microsoft 9,000 contacts; Apple 1,900 contacts; and just plain Artificial Intelligence over 270,000 contacts.
Google recently announced a breakthrough with state-of-the art breast cancer detection and at the same time made this statement: “What we’ve trained is just a little sliver of software that helps with one part of a very complex series of tasks,” said Lily Peng, the project manager behind Google’s work. “There will hopefully be more and more of these tools that help doctors [who] have to go through an enormous amount of information all the time.” The bottom line is that even experts in the field achieving astonishing developments realize they are barely scratching the surface.
The ABA Journal recently published an article on how AI will transform the legal industry. “Artificial intelligence is more than legal technology. It is the next great hope that will revolutionize the legal profession.” Goldman Sachs published the AI Age and talks about healthcare and retail. In short, a Google search for “how AI will affect……..” will yield you a handful of choices and dozens of articles for each industry category.
Still seem that AI is all about 500,000 geeks toying with technology? AI may be the best kept secret we have ever had but chances are it is already influencing your life and that of countless millions with more to come at an ever increasing pace.