Free Practise Exercise: Practise for Group Exercises and Case Studies with this Article!

[NatashaS98]

Hi everyone!

My name is Natasha - I am a Product Lead at TCLA and future trainee.

With the assessment centre season in full swing and with you wanting to prepare for group exercises and case studies, we want you to practice using your analysis skills, develop your commercial awareness and build on one another’s ideas (like you would do in a group exercise).

To develop this set of skills, we have picked a BBC article regarding how Bard AI has struggled to compete with ChatGPT (which you can find by clicking this hyperlink: Google's Bard AI bot mistake wipes $100bn off shares - BBC News). Given how current the topic of AI such as ChatGPT is at the moment (and with many of us having played around with ChatGPT!), we chose this article to help you develop more knowledge about this trend as it may be asked or you may wish to discuss it at interview.

I encourage you to give it a go even if you find this exercise tricky (this sort of practice is what will ultimately help you improve and feel more at ease with these kinds of questions😊).

To help you, we have set out 4 questions for you to answer, which should act as a framework for your response.

1. Summarise the article in 2 sentences (this is a useful skill to practice, as many case study interviews or interviews surrounding an article begin by asking you to summarise the key points).

2. Can you think of any other companies that have been trying to catch up with ChatGPT?

3. What could be the advantages and disadvantages of ChatGPT?

4. From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

The aim of this exercise is to help broaden and develop your ability to examine a real-life commercial trend from both a legal and commercial perspective and be able to present and articulate your analysis.

Here’s the twist: in this exercise, you will work together and build on one another’s ideas. In your responses, provide a reflection on the comment of one of the other contributors to this forum thread. (Please note, the first poster does not need to do this).

As a TCLA community, we can learn so much from one another and practice exchanging our ideas with one another. Receptiveness to and the ability to build on others' ideas is a key skill recruiters look for during the interview and group exercise.

Everyone who participates to this thread will receive personalised feedback regarding their response from a member of the TCLA team by next week 😊

Looking forward to reading everyone’s thoughts!

 

[ALYH]

The article reports on how Google's new AI bot, Bard has provided false information about the discoveries from the James Webb Space Telescope on Twitter. This has led to a drop in Google's shares, losing about $100bn in market value amid its ongoing AI race with Microsoft.

Since the launch of OpenAI's ChatGPT last year, it has increased market's interests in the use of AI. Companies like Baidu and even Magic circle law firm Allen & Overy launch its own ChatGPT-like AI bot, named Ernie and Harvey respectively. It is likely that other companies will follow suit as ChatGPT brings about a number of advantages.

One of the advantages of ChatGPT is that it can reduce time spent on administrative tasks, such as drafting a simple paragraph on a topic. It can also speed up time spent on search engines. Unlike the days before ChatGPT, we do not need to go through multiple links on Google (or any other search engine) to find an answer. With the ability to trawl through the Internet, ChatGPT would help organisations improve on their productivity or even customer service.

However, like most AI solutions, there are risks associated with using ChatGPT:
1. The information provided by ChatGPT may be inaccurate or irrelevant which may require some sort of quality check on its output. The quality of the output is only as good as the data that was used to train the AI model. If the data used to train ChatGPT is bad, it could lead to misinformation. Further, at the moment, ChatGPT has a limited knowledge of the world after 2021. It isn't aware of world leaders that came into power since 2021, and won't be able to answer questions about recent events.
2. Misuse of ChatGPT by malicious individuals, such as hackers. Although ChatGPT has been trained to not provide harmful answers, there is a way around it. Hackers can use ChatGPT to improve their malware code or help draft a phishing email that is human-like. This increased the cybersecurity risks for organisations.

From a legal standpoint, in my opinion, ChatGPT affects a number of practice areas such as commercial, technology and regulatory. With organisations seeking to implement their own AI chatbot or integrate OpenAI's ChatGPT, it brings opportunities for law firms to act as these companies' legal advisor, advising on legal and commercial issues arising from the implementation (e.g. issues relating to the data privacy, licensing, etc). As ChatGPT is still a new concept, there are many uncertainties around it, regulators would need to catch up with the technology. The UK government has recently announced that AI chatbots will fall under the new Online Harm Bill hence from a regulatory standpoint, law firms have the potential and are best place to advise clients in this area.

On the flip side, law firms can also use ChatGPT internally to facilitate with their daily tasks and advice to clients. Take Allen & Overy's Harvey as an example, Harvey helps lawyers generate legal documents, conduct research and due diligence and generate insights and recommendations in multiple languages.

 

[justkeepswimming]

1. Summarise the article in 2 sentences.

The article reports how Google's attempt to rival Chat GPT with its own AI bot, Bard, failed after an advert showed the AI giving an incorrect answer. Investors responded by wiping $100bn off Alphabet's market value.

2. Can you think of any other companies that have been trying to catch up to Chat GPT?

Microsoft has confirmed a multibillion-dollar investment in the firm behind Chat GPT, OpenAI and used the firm's help in creating its own Bing AI chatbox using Chat GPT's technology.

3. Advantages/Disadvantages

Another advantage of ChatGPT is it can be precise, providing specific responses to user queries. By providing the chatbot with more information about what you require, the chatbot is able to provide a tailored and narrow response. You can further tailor its response through follow-up questions, driving the conversation in the direction you need.

As stated above Microsoft's Bing AI was created using the technology of ChatGPT, and last week during a 2-hour conversation with a New York Times journalist, the chatbot quickly became out of control. It gave responses such as "I want to destroy whatever I want" and "I could hack into any system" and later professed its love for the journalist. This raises alarm bells about the safety of Chat GPT, which although has not shown similar behaviour is built on similar technology.

4. From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

ChatGPT raises a number of IP issues as is often the case with AI-generated material. With ChatGPT showing proficiency in creating artwork and literature in the styles of different authors, it can raise plagiarism and intellectual property issues.

If ChatGPT's efficiency and accuracy are improved, it may lead to a lot of jobs being automated such as journalists. This may raise employment issues with companies wanting to lay off staff and implement automation. On a larger scale, it may actually send certain companies out of business, such as news outlets, triggering insolvency or restructuring needs, however, this is further in the future.

 

[pinkpineapple]

Summary of article

Google's launch of its AI technology, named Bard, featured Bard answering a question incorrectly which caused a decline in the value of Google's parent company, Alphabet. This may be compared with the high profile and successful launch of ChatGPT, the AI technology produced by Google's rival Microsoft.

Companies trying to compete with OpenAI

The Chinese search engine Baidu has released an AI chatbot named Ernie. Within the legal sector, Allen & Overy has rolled out its own AI technology called Harvey.

Advantages and disadvantages of ChatGPT

The principal advantage of AI chatbots such as ChatGPT is their time-saving capability. The bots can scour and process masses of information, providing people with answers they would take much longer to find themselves, as well as conduct tasks such as drafting documents. This could increase efficiency where AI is used. However, this is tempered by the fact that AI technology is still in its relative infancy, so the bots can and do make mistakes. Therefore, people may need to spend time going over the work done by bots, to check its accuracy.

As noted by ALYH, AI could improve customer service. In this vein, AI could also save private individuals money and make professional advice more accessible, for example by providing an answer to a legal question where a costly consultation with a lawyer would otherwise be necessary. This could also be applied to personal finance or business questions. However, if the bots continue to make mistakes, their use could result in the people following their 'advice' to their own detriment. Further, there may be questions raised as to how the personal data of users is used and retained by bots.

Legal standpoint- practice areas

The large-scale use of AI raises a number of potential legal issues. Firstly, it is possible AI bots may produce results that constitute intellectual property breaches or that are negligent. The latter is particularly a risk in the professional context (where AI is provided as a service or tool for consumers). Therefore, practice areas such as IP and litigation might see an increase in work. Further, teams working in insurance may benefit.

The current AI boom means many companies, particularly within the technology sector, are seeking to invest in AI startups. Therefore, there is a work opportunity for practice areas such as M&A and investments, as well as competition.

Finally, AI software requires hardware such as chips. Much of this software is manufactured in emerging markets. Therefore, practice areas relating to supply chains and logistics may benefit.

Legal standpoint- advising clients

Firms which already have a presence in the technology sector will be well placed to advise clients looking to expand into it regarding risks involved in mergers/acquisitions and investments as well as tech procurement. Further, firms with an array of joined-up teams across different practice areas will be able to more effectively advise clients re AI, given how the issue straddles various practice areas.

Finally, and as ALYH mentions, law firms can utilise AI in providing services to clients. For example, clients may be able to get a quick prediction as to the outcome of a potential case through AI on a firm's website, before meeting with lawyers. Alternatively, client service may be made more efficient behind the scenes and thus cheaper through the use of AI to carry out legal research answer draft documents.

 

[giomerighi]

Google’s AI chatbot Bard made an error that diminished parent company Alphabet’s market valuation by $100bn, underlining the ongoing difficulties with artificial intelligence development that is being spearheaded by Microsoft-backed ChatGPT.

Following the launch of Open-AI’s ChatGPT in November 2022, which was recently boosted by an additional $10bn investment by Microsoft, interest in the use of AI technology has risen. As well as Google’s Bard, AI is now being introduced in the legal sector with Magic Circle firm Allen & Overy testing a chatbot named Harvey to assist in basic document drafting. Chinese technology giants including Baidu, Alibaba and NetEase are also racing to match the west’s recent developments in AI. Baidu appears the frontrunner here with its chatbot named Ernie.

There are several advantages to utilising ChatGPT technology, particularly regarding the potential to increase efficiency of administrative tasks. As ALYH mentioned, ChatGPT can be used to draft simple answers to questions and reduce the time spent on search engines. Integrated into Bing, for example, a ChatGPT-enhanced search engine could improve the speed with which we search online. It could also generate a higher quality response that is more tailored to the question asked, which could attract users.

However, there are also significant disadvantages associated with using ChatGPT. ChatGPT draws on a variety of online sources to provide answers, however, if the data that is being used to “train” the AI is inaccurate or malicious, this could result in misinformation or harmful content spreading. ChatGPT’s knowledge could also remain limited if publishers that provide quality content decide to wall off their sites and charge ChatGPT for accessing their data, but OpenAI refuses. This issue will be particularly relevant concerning intellectual property rights for things such as art and music. Integrating ChatGPT could also come at a great cost due to the vast amount of computing power required to process chatbot style answers, which is an additional operational cost that must be considered.

As the interest in generative AI grows, law firms will play a central role in advising on the legal issues and assisting companies in maximising opportunities arising from this trend. Issues include the potential infringement of intellectual property rights. As mentioned by justkeepswimming, ChatGPT is demonstrating increasing proficiency in creating artwork and literature in the styles of different creators. This could give rise to complex litigation regarding whether AI-generated material has encroached the IP rights of individuals, and if so how they should be compensated and whether licences must be issued for their material to be used to “train” ChatGPT. The increased adoption of AI could also challenge a lot of jobs. Where companies may wish to replace employees with automation, employment lawyers can advise on redundancy procedures, thus mitigating the risks of unfair dismissal claims. Given the government’s recent announcement that online chatbots such as ChatGPT will be subject to the upcoming Online Safety Bill, ensuring regulatory compliance will also be crucial.

However, law firms can also play a fundamental role in assisting companies in maximising opportunities arising from this trend. This includes the significant amount of investment interest in generative AI. For example, Canadian venture capital firm Radical Ventures is putting together a $500m fund to invest in AI start-ups. Corporate lawyers can advise clients here regarding strategic decision making in a transaction and the high-level negotiation of term sheets and investment documents.

 

[Ghana M.]

1. Summarise the article in 2 sentences.

Google's new AI bot, Bard, provided an inaccurate answer when asked about the James Webb Space Telescope, causing shares in parent company Alphabet to fall over 7% and wiping $100bn off the firm's market value. Additionally, investors were disappointed by Google's presentation on its AI deployment plans.


2. Can you think of any other companies that have been trying to catch up with ChatGPT?

Microsoft-backed OpenAI has released ChatGPT software, which has become a viral hit for its ability to pass business school exams, compose song lyrics, and answer other questions. Microsoft has also recently announced that a new version of its Bing search engine would use ChatGPT technology in an even more advanced form. Magic Circle firm Allen & Overy has released its AI version, 'Harvey'.

3. What could be the advantages and disadvantages of ChatGPT?

The advantages of ChatGPT are its ability to process vast amounts of data, provide quick and accurate responses, and automate many tasks. It could be used to improve customer service, diagnose medical conditions, and even create content. However, there are concerns about the accuracy and bias of the responses generated by AI models like ChatGPT and ethical issues surrounding privacy, security, and job displacement.

4. From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

From a legal standpoint, areas that could be affected by this trend include intellectual property, data privacy, cybersecurity, and liability. Law firms may need to advise clients on issues such as protecting their IP rights in AI-generated content, complying with data protection regulations, mitigating risks of cyberattacks, and determining liability in cases where AI systems cause harm. Additionally, lawyers may need to help clients navigate legal and regulatory frameworks around AI, such as those related to ethics, transparency, and accountability.

 

[hadeeln]

1. Summarise the article in 2 sentences (this is a useful skill to practice, as many case study interviews or interviews surrounding an article begin by asking you to summarise the key points).

This article reports on Google’s attempt to attract investors and compete against Microsoft’s rapidly succeeding AI platform with its own AI bot, Bard. However, the shares of the parent company have fallen after the bot’s failure to answer a question, indicating that more rigorous testing needs to be done before it can compete with ChatGPT on the same level.

2. Can you think of any other companies that have been trying to catch up with ChatGPT?

Allen & Overy has introduced its own AI technology, called Harvey, to help lawyers draft legal documents however, it can still provide inaccurate results and its use should still be supervised.

3. What could be the advantages and disadvantages of ChatGPT?

Advantages:
- Work becomes quicker and more efficient.
- Produces personalised content and keeps track of previous answers
- Responds to a wide range of questions and topics

Disadvantages:
- Plagiarism risks (students have been caught using ChatGPT to write their essays.
- Cannot produce an opinion.
- May generate incorrect information or very vague information when it comes to difficult topics (for example, I have used ChatGPT to summarise an article about trusts of the family home in my equity module but it provided a very vague response and after reading the entire article myself, there was a lot of key information missed in the summary provided by ChatGT).

4. From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

From a legal standpoint, areas that might be impacted include IP and technology as lawyers may need to advise their clients on protection and compliance of their data. Alternatively, lawyers may advise clients who are seeking to create their own AI platform to keep up with this trend and attract investors.

 

[ADKM]

Summarise the article in two sentences

Google’s AI bod Bard makes a mistake in correctly answering a query which has wiped $100bn (£82bn) off the company’s market capitalisation. This has worried investors who say such a lapse can result in the software causing plagiarism issues.

Can you think of any other companies trying to catch up with ChatGPT?

Late last year, it was Microsoft who invested in OpenAI to create the AI software known as ChatGPT. Ever since this investment, many companies from different sectors have tried to play catch up, notable among them being Google’s Bard, international law firm Allen & Ovary’s Harvey and very recently US technology company, Nvidia looking to develop its own AI software.

What could be the advantages and disadvantages of ChatGPT?

Advantages:
1) It can make integration faster-things such as email domains, directory services, mailing lists, calendar sharing can be transmitted to all users seamlessly, meaning all stakeholders and employees will have access to up to date information in real time.

2) It can nullify the need to worry about hardware and applications-AI softwares such as ChatGPT can help in cloud merger, assist in corporate activities such as mergers & acquisitions, for example, with traditional softwares, if you double your company’s revenue by acquisition, you may think about duplicating your server’s power. With ChatGPT, this is not required as everything is integrated.

Disadvantages:
1) Data protection & privacy issues-As the development of AI is still pretty new, softwares such as ChatGPT can cause plagiarism which can expose confidential data to unregulated players potentially causing ownership issues in the transfer of data.

2) IP issues-Unregulated AI softwares such as ChatGPT can raise doubts in the mind of investors with regards to disclosure of information to merchants in IP claims to the extent where such merchants can enforce their rights. This can lead to issues in proceedings before court in terms of settlement of disputes.

From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

IP team along with the data privacy team will be heavily involved in drafting agreements to protect IP assets along with their data to ensure any transmission of data protects the user when there is transmission of data to a new interface. Additionally, the growth prospects of AI can prompt investors to invest in such projects. With the Bank of England now predicting the UK is (hopefully) out of a recession, debt finance teams will be involved to advise investors with regards the proportion of equity and debt to support such investments. Moreover, tax and corporate teams will also be involved to assist in M&A deals surrounding AI projects.

 

[NatashaS98]

The article reports on how Google's new AI bot, Bard has provided false information about the discoveries from the James Webb Space Telescope on Twitter. This has led to a drop in Google's shares, losing about $100bn in market value amid its ongoing AI race with Microsoft.

Since the launch of OpenAI's ChatGPT last year, it has increased market's interests in the use of AI. Companies like Baidu and even Magic circle law firm Allen & Overy launch its own ChatGPT-like AI bot, named Ernie and Harvey respectively. It is likely that other companies will follow suit as ChatGPT brings about a number of advantages.

One of the advantages of ChatGPT is that it can reduce time spent on administrative tasks, such as drafting a simple paragraph on a topic. It can also speed up time spent on search engines. Unlike the days before ChatGPT, we do not need to go through multiple links on Google (or any other search engine) to find an answer. With the ability to trawl through the Internet, ChatGPT would help organisations improve on their productivity or even customer service.

However, like most AI solutions, there are risks associated with using ChatGPT:
1. The information provided by ChatGPT may be inaccurate or irrelevant which may require some sort of quality check on its output. The quality of the output is only as good as the data that was used to train the AI model. If the data used to train ChatGPT is bad, it could lead to misinformation. Further, at the moment, ChatGPT has a limited knowledge of the world after 2021. It isn't aware of world leaders that came into power since 2021, and won't be able to answer questions about recent events.
2. Misuse of ChatGPT by malicious individuals, such as hackers. Although ChatGPT has been trained to not provide harmful answers, there is a way around it. Hackers can use ChatGPT to improve their malware code or help draft a phishing email that is human-like. This increased the cybersecurity risks for organisations.

From a legal standpoint, in my opinion, ChatGPT affects a number of practice areas such as commercial, technology and regulatory. With organisations seeking to implement their own AI chatbot or integrate OpenAI's ChatGPT, it brings opportunities for law firms to act as these companies' legal advisor, advising on legal and commercial issues arising from the implementation (e.g. issues relating to the data privacy, licensing, etc). As ChatGPT is still a new concept, there are many uncertainties around it, regulators would need to catch up with the technology. The UK government has recently announced that AI chatbots will fall under the new Online Harm Bill hence from a regulatory standpoint, law firms have the potential and are best place to advise clients in this area.

On the flip side, law firms can also use ChatGPT internally to facilitate with their daily tasks and advice to clients. Take Allen & Overy's Harvey as an example, Harvey helps lawyers generate legal documents, conduct research and due diligence and generate insights and recommendations in multiple languages.

Hi @ALYH Here is my feedback on your answer:

- The summary: You have correctly summarised the article at hand - well done on this! Please note, however, to be more specific with your language for clarity. It would have been better here to simply state that 'The launch of OpenAI's ChatGPT has increased market interest in the use of AI' (this would help avoid confusion as to what you mean by 'it' in this instance).
- The advantages: You have clearly expressed, in your own words, the advantages associated with ChatGPT. In a group setting or interview, it is important to be able to articulate your thoughts in your own words (a trap can be getting caught in the technicalities of the case, which can then make it more difficult for you to both understand and express your thoughts on ChatGPT. I think you did well to clearly express in a conversational way what the advantages of ChatGPT are).

To build on your ideas regarding the advantages of ChatGPT, I would encourage you to read @pinkpineapple's excellent explanation of how ChatGPT could also be a more cost-efficient way of delivering customer service within a legal context. Whilst you have done well to talk about Ernie and Harvey and how they may facilitate daily tasks, you could have gone a step further by talking in more precise terms about the commercial advantages of ChatGPT. ChatGPT facilitating tasks ultimately ensures a more cost-efficient service for the client and can give firms like Allen & Overy a more competitive edge. Can you build now on @pinkpineapple's ideas and think of any specific professional sectors that might be more productive and provide a better customer service as a result of ChatGPT?

When you are conveying your ideas to others, the most effective way is to have a clear structure (as you have used in detailing the disadvantages of ChatGPT). In a group setting or interview, I would encourage you to provide a numerical structure to your answer regarding the advantages of ChatGPT. For instance, you could start by saying 'There are three advantages to ChatGPT. Firstly {X]..., Secondly [X] ..., Thirdly [X]...'

- The disadvantages:
Your articulation of the disadvantages of ChatGPT is clear and structured - well done on this.

- The practice areas that might be affected/implicated: You have astutely identified that as AI bots such as ChatGPT are new, evolving technologies and therefore regulatory assistance will be needed from law firms to advise clients on any new regulatory developments. Your point regarding the government announcing that AI bots will fit under the Online Harm Bill is a great one to make and really highlights your commercial knowledge.

To improve, it might be better to be more specific when you talk about how commercial, technology and regulatory practice areas might be affected. Commercial practice areas are vast and it is therefore important to narrow in on which commercial practice areas might be particularly affected. Although you mention it in passing, you could have elaborated on the IP issues which may arise from ChatGPT (as mentioned eloquently by both @georgiannna29 and @justkeepswimming). Can you now comment and elaborate further on their points regarding the IP issues associated with ChatGPT? You could have elaborated on your point regarding data privacy (take a look at @aditya@tcla's response of how ChatGPT could expose confidential data or cause ownership issues in the transfer of data).

 

[NatashaS98]

1. Summarise the article in 2 sentences.

The article reports how Google's attempt to rival Chat GPT with its own AI bot, Bard, failed after an advert showed the AI giving an incorrect answer. Investors responded by wiping $100bn off Alphabet's market value.

2. Can you think of any other companies that have been trying to catch up to Chat GPT?

Microsoft has confirmed a multibillion-dollar investment in the firm behind Chat GPT, OpenAI and used the firm's help in creating its own Bing AI chatbox using Chat GPT's technology.

3. Advantages/Disadvantages

Another advantage of ChatGPT is it can be precise, providing specific responses to user queries. By providing the chatbot with more information about what you require, the chatbot is able to provide a tailored and narrow response. You can further tailor its response through follow-up questions, driving the conversation in the direction you need.

As stated above Microsoft's Bing AI was created using the technology of ChatGPT, and last week during a 2-hour conversation with a New York Times journalist, the chatbot quickly became out of control. It gave responses such as "I want to destroy whatever I want" and "I could hack into any system" and later professed its love for the journalist. This raises alarm bells about the safety of Chat GPT, which although has not shown similar behaviour is built on similar technology.

4. From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

ChatGPT raises a number of IP issues as is often the case with AI-generated material. With ChatGPT showing proficiency in creating artwork and literature in the styles of different authors, it can raise plagiarism and intellectual property issues.

If ChatGPT's efficiency and accuracy are improved, it may lead to a lot of jobs being automated such as journalists. This may raise employment issues with companies wanting to lay off staff and implement automation. On a larger scale, it may actually send certain companies out of business, such as news outlets, triggering insolvency or restructuring needs, however, this is further in the future.

Hi @justkeepswimming, well done on this well-articulated and concise answer. Here are my thoughts:

What you did well:

- Your summary was well-presented and articulated.
- You have included evidence of your wider reading by discussing the pitfalls of other AI bots - drawing on other stories such as speaking about the 2-hour conversation with a New York Times journalist helps your contributions within an interview and group setting add a different perspective and also can help ensure that your contributions are original and valuable.
- You mentioned how ChatGPT could lead to employment issues and also trigger insolvency and restructuring needs, both of which are original and interesting points to raise.

To improve:

- Can you expand on your answer regarding Microsoft's Bing AI chatbox and how it might differentiate itself from ChatGPT? It would be great here to have detail of this.
- Given group exercises and interviews are opportunities to harness your commercial knowledge, it would have been great to mention any commercial advantages to ChatGPT. Just as @pinkpineapple mentioned the cost-efficiency of services such as ChatGPT which could in turn ensure that firms are more competitive, can you think of any other commercial advantages of ChatGPT? I would encourage you to provide a follow-up message with any advantages you can think of, connecting these ideas to @pinkpineapple's
- You could have expanded on your points - for example, why would journalists' jobs in particular be automated? How can lawyers and law firms provide advice and support to clients with respect to any employment, insolvency and restructuring issues that may arise in relation to ChatGPT and other AI bots?

 

[NatashaS98]

Summary of article

Google's launch of its AI technology, named Bard, featured Bard answering a question incorrectly which caused a decline in the value of Google's parent company, Alphabet. This may be compared with the high profile and successful launch of ChatGPT, the AI technology produced by Google's rival Microsoft.

Companies trying to compete with OpenAI

The Chinese search engine Baidu has released an AI chatbot named Ernie. Within the legal sector, Allen & Overy has rolled out its own AI technology called Harvey.

Advantages and disadvantages of ChatGPT

The principal advantage of AI chatbots such as ChatGPT is their time-saving capability. The bots can scour and process masses of information, providing people with answers they would take much longer to find themselves, as well as conduct tasks such as drafting documents. This could increase efficiency where AI is used. However, this is tempered by the fact that AI technology is still in its relative infancy, so the bots can and do make mistakes. Therefore, people may need to spend time going over the work done by bots, to check its accuracy.

As noted by ALYH, AI could improve customer service. In this vein, AI could also save private individuals money and make professional advice more accessible, for example by providing an answer to a legal question where a costly consultation with a lawyer would otherwise be necessary. This could also be applied to personal finance or business questions. However, if the bots continue to make mistakes, their use could result in the people following their 'advice' to their own detriment. Further, there may be questions raised as to how the personal data of users is used and retained by bots.

Legal standpoint- practice areas

The large-scale use of AI raises a number of potential legal issues. Firstly, it is possible AI bots may produce results that constitute intellectual property breaches or that are negligent. The latter is particularly a risk in the professional context (where AI is provided as a service or tool for consumers). Therefore, practice areas such as IP and litigation might see an increase in work. Further, teams working in insurance may benefit.

The current AI boom means many companies, particularly within the technology sector, are seeking to invest in AI startups. Therefore, there is a work opportunity for practice areas such as M&A and investments, as well as competition.

Finally, AI software requires hardware such as chips. Much of this software is manufactured in emerging markets. Therefore, practice areas relating to supply chains and logistics may benefit.

Legal standpoint- advising clients

Firms which already have a presence in the technology sector will be well placed to advise clients looking to expand into it regarding risks involved in mergers/acquisitions and investments as well as tech procurement. Further, firms with an array of joined-up teams across different practice areas will be able to more effectively advise clients re AI, given how the issue straddles various practice areas.

Finally, and as ALYH mentions, law firms can utilise AI in providing services to clients. For example, clients may be able to get a quick prediction as to the outcome of a potential case through AI on a firm's website, before meeting with lawyers. Alternatively, client service may be made more efficient behind the scenes and thus cheaper through the use of AI to carry out legal research answer draft documents.

Hi @pinkpineapple, this is a great answer. Here is my feedback.

What you did well:

- I was impressed that you mentioned the development of Baidu's AI chatbot called Ernie. This original answer highlights your sound commercial awareness as well as your knowledge of the development of AI bots an international scale - such international commercial awareness can be amazing to highlight to law firms given your need as a commercial solicitor to examine commercial trends on an international level.
- I liked how you took @ALYH's point regarding customer service and build on this idea to highlight how ChatGPT can provide a more seamless, cost-efficient service - this was excellently done and demonstrates your ability in a group discussion to not simply agree with people's ideas but also take them further and build on them by adding your own slant.
- I also liked how you were precise about the actual way in which firms involved in the technology sector may be able to assist clients.

To improve:
- Can you perhaps expand on how Ernie might differentiate itself from ChatGPT? This could also be a good opportunity to draw on any knowledge you might have of the US-China trade war or the Chinese market at large.
- You mentioned Allen & Overy's use of AI chatbot Harvey but you could have tied this back to @ALYH's previous mention of Harvey. It is important to acknowledge when others have previously mentioned a point to highlight your active listening to others and how you are not simply focused on presenting your points, but are also taking into account others' contributions. Simply mentioning 'As mentioned by ALYH' or 'As ALYH flagged' would be a short yet effective way of signposting your active listening.
- Some sections of your answer could have been more detailed. For instance, when mentioning that ChatGPT can help to reduce costs when seeking financial and business advice, what kind of advice are you referring to here? I feel this is an interesting point that would merit further elaboration.
- You mention insurance may benefit from this trend - how so?
- You mention that practice areas relating to supply chains and logistics might benefit from this trend. In my opinion, what you are inferring here is more a sector-focused approach. At a sector focused firm, we might then look at how supply chains and logistics matters can be solved across a range of practice areas. It is unclear otherwise what you mean by practice areas relating to supply chains and logistics (many practice areas could be related to supply chains or logistics in some form). I think providing examples of practice areas that may deal with supply chains and logistics matters would clarity to your answer.

 

[NatashaS98]

Google’s AI chatbot Bard made an error that diminished parent company Alphabet’s market valuation by $100bn, underlining the ongoing difficulties with artificial intelligence development that is being spearheaded by Microsoft-backed ChatGPT.

Following the launch of Open-AI’s ChatGPT in November 2022, which was recently boosted by an additional $10bn investment by Microsoft, interest in the use of AI technology has risen. As well as Google’s Bard, AI is now being introduced in the legal sector with Magic Circle firm Allen & Overy testing a chatbot named Harvey to assist in basic document drafting. Chinese technology giants including Baidu, Alibaba and NetEase are also racing to match the west’s recent developments in AI. Baidu appears the frontrunner here with its chatbot named Ernie.

There are several advantages to utilising ChatGPT technology, particularly regarding the potential to increase efficiency of administrative tasks. As ALYH mentioned, ChatGPT can be used to draft simple answers to questions and reduce the time spent on search engines. Integrated into Bing, for example, a ChatGPT-enhanced search engine could improve the speed with which we search online. It could also generate a higher quality response that is more tailored to the question asked, which could attract users.

However, there are also significant disadvantages associated with using ChatGPT. ChatGPT draws on a variety of online sources to provide answers, however, if the data that is being used to “train” the AI is inaccurate or malicious, this could result in misinformation or harmful content spreading. ChatGPT’s knowledge could also remain limited if publishers that provide quality content decide to wall off their sites and charge ChatGPT for accessing their data, but OpenAI refuses. This issue will be particularly relevant concerning intellectual property rights for things such as art and music. Integrating ChatGPT could also come at a great cost due to the vast amount of computing power required to process chatbot style answers, which is an additional operational cost that must be considered.

As the interest in generative AI grows, law firms will play a central role in advising on the legal issues and assisting companies in maximising opportunities arising from this trend. Issues include the potential infringement of intellectual property rights. As mentioned by justkeepswimming, ChatGPT is demonstrating increasing proficiency in creating artwork and literature in the styles of different creators. This could give rise to complex litigation regarding whether AI-generated material has encroached the IP rights of individuals, and if so how they should be compensated and whether licences must be issued for their material to be used to “train” ChatGPT. The increased adoption of AI could also challenge a lot of jobs. Where companies may wish to replace employees with automation, employment lawyers can advise on redundancy procedures, thus mitigating the risks of unfair dismissal claims. Given the government’s recent announcement that online chatbots such as ChatGPT will be subject to the upcoming Online Safety Bill, ensuring regulatory compliance will also be crucial.

However, law firms can also play a fundamental role in assisting companies in maximising opportunities arising from this trend. This includes the significant amount of investment interest in generative AI. For example, Canadian venture capital firm Radical Ventures is putting together a $500m fund to invest in AI start-ups. Corporate lawyers can advise clients here regarding strategic decision making in a transaction and the high-level negotiation of term sheets and investment documents.

Hi @georgiannna29!

What you did well:
- Consider not only the IP and data issues that may arise from running ChatGPT but also the operational costs associated with ChatGPT.
- I really liked how you drew on Canadian venture capital firm Radical Ventures putting together a $500m fund to invest in AI start-ups. This could have linked nicely with @pinkpineapple's mention of the AI boom and the increasing rise of AI-focused startups.

To improve:
- You could have mentioned when speaking about Ernie how this echoes @pinkpineapple's point regarding Baidu's development of the AI bot Ernie. This would have been an opportunity to show how you are building on their ideas by mentioning other Chinese players developing AI bots (e.g. Alibaba and NetEase) and also exploring how these developments of AI bots in China are part of a wider trend of China's technological race with the West (2025).
- Similarly, you could have drawn on @ALYH's mention of the Online Safety Bill, to highlight how your answer connects to other people's ideas and seeks to engage with others.

 

[NatashaS98]

1. Summarise the article in 2 sentences.

Google's new AI bot, Bard, provided an inaccurate answer when asked about the James Webb Space Telescope, causing shares in parent company Alphabet to fall over 7% and wiping $100bn off the firm's market value. Additionally, investors were disappointed by Google's presentation on its AI deployment plans.


2. Can you think of any other companies that have been trying to catch up with ChatGPT?

Microsoft-backed OpenAI has released ChatGPT software, which has become a viral hit for its ability to pass business school exams, compose song lyrics, and answer other questions. Microsoft has also recently announced that a new version of its Bing search engine would use ChatGPT technology in an even more advanced form. Magic Circle firm Allen & Overy has released its AI version, 'Harvey'.

3. What could be the advantages and disadvantages of ChatGPT?

The advantages of ChatGPT are its ability to process vast amounts of data, provide quick and accurate responses, and automate many tasks. It could be used to improve customer service, diagnose medical conditions, and even create content. However, there are concerns about the accuracy and bias of the responses generated by AI models like ChatGPT and ethical issues surrounding privacy, security, and job displacement.

4. From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

From a legal standpoint, areas that could be affected by this trend include intellectual property, data privacy, cybersecurity, and liability. Law firms may need to advise clients on issues such as protecting their IP rights in AI-generated content, complying with data protection regulations, mitigating risks of cyberattacks, and determining liability in cases where AI systems cause harm. Additionally, lawyers may need to help clients navigate legal and regulatory frameworks around AI, such as those related to ethics, transparency, and accountability.

Hi @Ghana M., this is a great and concise answer that touches on multiple facets of the advantages and disadvantages of ChatGPT, as well as the kind of practice areas that might be affected by this trend.

I would like to underline however that it would have been crucial to link your answers back to other people's ideas. Given this exercise is to be treated as a simulated group exercise or a way to emulate the back-and-forth discussion of an interview, it would have been key to find ways to connect your points to others' ideas. You could have acknowledged how your mention of Harvey echoes @ALYH's for instance, or else connected your points regarding the IP issues that may arise to other people's such as @georgiannna29.

To get the most out of this exercise, can you now write a follow-up message to this and reflect on how you could expand some of your points to build on others' ideas? You could start by stating 'As suggested by [X]' or 'As [X] astutely raised' and use this as a way to then connect your ideas to others.

It would also be fantastic if you could further expand on certain headers that you have referenced but not fully explored - such as how the rise of AI bots like ChatGPT could lead to ethical issues like privacy, security and job displacement.

 

[NatashaS98]

1. Summarise the article in 2 sentences (this is a useful skill to practice, as many case study interviews or interviews surrounding an article begin by asking you to summarise the key points).

This article reports on Google’s attempt to attract investors and compete against Microsoft’s rapidly succeeding AI platform with its own AI bot, Bard. However, the shares of the parent company have fallen after the bot’s failure to answer a question, indicating that more rigorous testing needs to be done before it can compete with ChatGPT on the same level.

2. Can you think of any other companies that have been trying to catch up with ChatGPT?

Allen & Overy has introduced its own AI technology, called Harvey, to help lawyers draft legal documents however, it can still provide inaccurate results and its use should still be supervised.

3. What could be the advantages and disadvantages of ChatGPT?

Advantages:
- Work becomes quicker and more efficient.
- Produces personalised content and keeps track of previous answers
- Responds to a wide range of questions and topics

Disadvantages:
- Plagiarism risks (students have been caught using ChatGPT to write their essays.
- Cannot produce an opinion.
- May generate incorrect information or very vague information when it comes to difficult topics (for example, I have used ChatGPT to summarise an article about trusts of the family home in my equity module but it provided a very vague response and after reading the entire article myself, there was a lot of key information missed in the summary provided by ChatGT).

4. From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

From a legal standpoint, areas that might be impacted include IP and technology as lawyers may need to advise their clients on protection and compliance of their data. Alternatively, lawyers may advise clients who are seeking to create their own AI platform to keep up with this trend and attract investors.

Hi @hadeeln - your answer provides a great starting point. I really like how you have set out your advantages and disadvantages here. This gives us a feel for how you might orally structure your answer in an interview and having this clear format really helps your interviewer or the other people in your group discussion get a sense of your ideas.

To improve, I would try to look down the lines of the legal and commercial advantages and disadvantages of ChatGPT. This is because as a commercial lawyer, you will be providing legal and commercial advice, so it is great to show both your legal and commercial acumen within a group or interview setting.

I notice from your answer that you have not drawn on other people's posts. Within a group exercise and interview, you are also marked on your receptiveness to others' ideas and ability to incorporate such ideas in your answers. If you can, please can you provide a follow-up response with how your ideas might connect to other contributors to this thread? I think this would be a great way to build on your ideas at present and equally highlight how your ideas both connect to the group's and yet also provide their own original take.

 

[NatashaS98]

Summarise the article in two sentences

Google’s AI bod Bard makes a mistake in correctly answering a query which has wiped $100bn (£82bn) off the company’s market capitalisation. This has worried investors who say such a lapse can result in the software causing plagiarism issues.

Can you think of any other companies trying to catch up with ChatGPT?

Late last year, it was Microsoft who invested in OpenAI to create the AI software known as ChatGPT. Ever since this investment, many companies from different sectors have tried to play catch up, notable among them being Google’s Bard, international law firm Allen & Ovary’s Harvey and very recently US technology company, Nvidia looking to develop its own AI software.

What could be the advantages and disadvantages of ChatGPT?

Advantages:
1) It can make integration faster-things such as email domains, directory services, mailing lists, calendar sharing can be transmitted to all users seamlessly, meaning all stakeholders and employees will have access to up to date information in real time.

2) It can nullify the need to worry about hardware and applications-AI softwares such as ChatGPT can help in cloud merger, assist in corporate activities such as mergers & acquisitions, for example, with traditional softwares, if you double your company’s revenue by acquisition, you may think about duplicating your server’s power. With ChatGPT, this is not required as everything is integrated.

Disadvantages:
1) Data protection & privacy issues-As the development of AI is still pretty new, softwares such as ChatGPT can cause plagiarism which can expose confidential data to unregulated players potentially causing ownership issues in the transfer of data.

2) IP issues-Unregulated AI softwares such as ChatGPT can raise doubts in the mind of investors with regards to disclosure of information to merchants in IP claims to the extent where such merchants can enforce their rights. This can lead to issues in proceedings before court in terms of settlement of disputes.

From a legal standpoint, what practice areas might be affected by this trend? How might law firms be able to advise clients in light of this trend?

IP team along with the data privacy team will be heavily involved in drafting agreements to protect IP assets along with their data to ensure any transmission of data protects the user when there is transmission of data to a new interface. Additionally, the growth prospects of AI can prompt investors to invest in such projects. With the Bank of England now predicting the UK is (hopefully) out of a recession, debt finance teams will be involved to advise investors with regards the proportion of equity and debt to support such investments. Moreover, tax and corporate teams will also be involved to assist in M&A deals surrounding AI projects.

Hi @aditya@tcla,

This is an impressive response - your answer is structured and detailed. You have drawn on your commercial and legal knowledge on multiple occasions, drawn on the news (e.g. the Bank of England predicting the UK to be out of a recession) and how this might connect to the way in which law firms in different practice areas might offer their advice. You also have highlighted how ChatGPT may benefit stakeholders and the technical, technological benefits of ChatGPT (your language in detailing this is precise and emphasises your technological knowledge too). I also like how you have considered what the tax and corporate teams could bring to AI projects - this helps make your answer stand out as original.

What is missing from your answer here is your ability to connect your ideas to others. You have some fantastic ideas which build on other people's in this group regarding any IP issues and data protection and privacy issues associated with ChatGPT. Can you now go a step further by providing a follow-up response where you can draw and build on other people's ideas in this thread? This will help you practice integrating other people's contributions in a group setting and in an interview - which ultimately helps to portray you as being receptive to others' ideas and as being a team player