In a groundbreaking collaboration set to redefine the landscape of legaltech, UK-based startup Orbital Witness has partnered with First Title Insurance, a subsidiary of First American Financial Corporation, to introduce AI Reliance—a pioneering insurance-backed guarantee for accuracy in AI-driven legal products. This unprecedented initiative marks a significant milestone in the professional services industry, particularly in law and conveyancing, demonstrating a bold leap towards integrating advanced technology with robust financial security.
Since its inception in 2018, Orbital Witness has revolutionized real estate transactions with its AI-powered software, facilitating streamlined legal due diligence and client reporting processes across more than 60,000 property transactions annually. Notably, the platform’s clientele includes prestigious firms such as Linklaters, Herbert Smith Freehills, and Clifford Chance, alongside global enterprises like PwC, Zurich, E.ON, Marks & Spencer, and Tesla, underscoring its widespread adoption and trusted reputation in the market.
Under the newly forged partnership, First Title will underwrite Orbital Witness’s Generative AI product output, ensuring that law firms utilizing the platform’s Orbital Residential product benefit from enhanced reliability and reduced risk. This innovative insurance policy provides coverage in the event of errors, offering law firms a level of protection that aligns with regulatory standards without necessitating claims on their professional indemnity insurance—an unprecedented assurance in the evolving landscape of AI-driven legal technologies.
Ed Boulle, Co-Founder and Chief Strategy Officer of Orbital Witness, emphasized the significance of this collaboration in enhancing industry standards and compliance:
“Generative AI holds immense potential in transforming legal processes, and our partnership with First Title sets a precedent for ensuring its safe and reliable integration within regulatory frameworks. This initiative not only mitigates risks associated with new technologies but also fosters greater confidence among legal professionals and regulators alike.”
Kevin Dick, CEO of First Title, highlighted the transformative impact of AI Reliance insurance in professional services:
“As AI becomes increasingly integral to expediting real estate transactions, our insurance policy represents a pivotal advancement in safeguarding firms against uncertainties. It establishes a new benchmark for transparency and reliability in AI applications, paving the way for future innovations in compliance and accountability.”
Registered by the Financial Conduct Authority to distribute insurance on behalf of First Title, Orbital Witness is poised to lead the charge in integrating insurance as a fundamental component of AI-driven products. Looking ahead, Ed Boulle affirmed:
“While Orbital Witness may be the first to embed insurance in its AI solutions, we envision this becoming standard practice across industries. Insurance will undoubtedly play a crucial role in shaping responsible AI usage, ensuring businesses operate within frameworks that uphold financial accountability and regulatory adherence.”
This strategic partnership between Orbital Witness and First Title not only sets a precedent for the legaltech sector but also underscores a commitment to innovation that prioritizes reliability, compliance, and client assurance. As AI continues to evolve, initiatives like AI Reliance insurance are poised to drive transformative change, offering a glimpse into a future where technology and security converge seamlessly to enhance business operations worldwide.
Segment Overview:
Here’s a breakdown of Law related global companies and startups focusing on Artificial Intelligence (AI) :
Contract Analysis & Review:
- LexisNexis (US): Their AI-powered contract review tool, Lex Machina, analyzes contracts for risks, inconsistencies, and key terms, accelerating the review process for lawyers.
- Kira Systems (Canada): This platform uses AI to identify key provisions and clauses within contracts, enabling faster due diligence and risk assessment.
- Evisort (US): Evisort’s AI automates contract data extraction, streamlining the process of gathering critical information from legal agreements.
Legal Research & Due Diligence:
- LawGeex (Israel): This AI-powered platform analyzes legal documents and identifies potential issues, helping lawyers conduct due diligence more efficiently.
- Lex Machina (mentioned above) from LexisNexis also assists with legal research by using AI to analyze vast amounts of case law and identify relevant precedents.
- CaseMine (US): This platform leverages AI to analyze legal documents and case law, providing lawyers with insights and predicted outcomes for their cases.
Legal Assistance & Automation:
- DoNotPay (US): This AI-powered chatbot helps users navigate legal issues and complete legal tasks, such as contesting parking tickets or filing for bankruptcy.
- LegalZoom (US) & Rocket Lawyer (US): While not purely AI-focused, both offer AI-powered tools for legal document generation and basic legal guidance.
- MikeLegal (mentioned previously, global): This virtual legal assistant utilizes AI to automate tasks like legal research, document review, and due diligence, freeing up lawyers’ time.
These are just a few examples, and the field of AI-powered legaltech is constantly evolving. The development of “AI reliance” insurance, like Orbital Witness’s offering, signifies a growing confidence in the accuracy and reliability of AI for legal tasks. This trend will likely lead to even more innovative applications of AI in the legal industry in the years to come.
Industry Overview:
The legaltech industry is on a strong growth trajectory. As of now, market size estimates hover around $24.2 billion. This figure is expected to climb at a compound annual growth rate (CAGR) exceeding 9%, potentially reaching a valuation of $54.4 billion by 2036. This growth is driven by factors like rising pressure on legal departments and firms to manage costs, the ever-present need for improved efficiency and accuracy in legal processes, and the increasing adoption of AI and other cutting-edge technologies. Legal spending is projected to remain high, creating a significant opportunity for legaltech solutions that automate tasks, streamline workflows, and reduce costs. The emergence of “AI reliance” insurance, pioneered by companies like Orbital Witness, signifies a growing trust in AI for legal tasks, which is likely to be another key driver of growth. This confluence of factors suggests the legaltech industry is primed for continued expansion and innovation in the coming years.
Editorial Opinion
Orbital Witness is poised at the forefront of legaltech innovation with its pioneering AI-powered software and the groundbreaking introduction of AI Reliance insurance. By partnering with First Title to underwrite AI product accuracy, Orbital Witness not only mitigates risks for legal professionals but also sets a new standard for reliability and compliance in AI applications within legal services. This strategic move not only enhances operational efficiencies and reduces human error but also positions Orbital Witness as a trailblazer in integrating cutting-edge technology with robust financial security. As regulatory scrutiny of AI intensifies, Orbital Witness stands ready to lead by example, ensuring its solutions meet the highest standards of safety and efficacy. With a client base already encompassing top-tier legal firms and global enterprises, Orbital Witness is well-positioned to expand its footprint and continue driving innovation that reshapes how legal due diligence is conducted worldwide.
