Navigating AI: This Week's Business Highlights #16

July 13, 2024

Welcome to the AI Trailblazers Newsletter. It was another newsworthy week for AI, with news from many trying to figure out the value of the technology for their enterprises. Please continue to share compelling AI business stories for potential inclusion in the newsletter and remember to follow us on LinkedIn.

AI is revolutionizing the legal profession by significantly enhancing efficiency and reducing costs. A recent Kiplinger article explores how AI helps lawyers manage vast amounts of data, streamline legal processes, and improve accessibility to justice. From reviewing thousands of documents to becoming an indispensable tool in both large and small law firms, AI is transforming the way legal work is conducted and setting new standards for the industry.

  • Enhanced Efficiency and Recall: AI can manage vast amounts of data, effectively serving as a virtual assistant with perfect recall of legal documents. This capability allows AI to suggest questions during depositions and provide insights on contracts, minimizing the risk of overlooking important details. As a result, AI helps lawyers work more efficiently and reduces the potential for malpractice.

  • Handling Massive Data in Lawsuits: AI excels in reviewing large volumes of documents, which can be overwhelming in legal cases. By quickly sifting through thousands of documents, AI can uncover critical facts that might otherwise be missed. This technological advantage helps level the playing field in legal battles, ensuring thorough and efficient case preparation.

  • Cost-Effective Justice: AI's ability to expedite legal processes makes justice more accessible and affordable. It enhances the speed and efficiency of legal work, benefiting clients who might not afford top-tier lawyers. AI integration allows lawyers to complete more tasks at a reduced cost, improving overall legal service quality.

  • AI as a Standard Practice: The use of AI in law is becoming a standard expectation, with failure to adopt it potentially considered malpractice in the future. AI's effectiveness in catching details that humans might miss is driving its adoption across both large and small law firms. However, the rise of AI might reduce the demand for entry-level legal positions, impacting career prospects in the legal profession.

AI Trailblazer Takeaways: Could AI make the legal system faster and cheaper? If true and on scale, it’ll mean AI is even more valuable than earlier thought.

Structuring AI Implementation

The Harvard Business Review explores how businesses can effectively integrate AI into their growth strategies by following a structured approach. It emphasizes defining AI's role in practical terms, evaluating current technological capabilities, accessing the necessary technology, and determining the scale of AI investment. By adhering to these steps, companies can make informed decisions about whether AI is the "next big thing" for their growth.

  • Defining AI's Role in Business: Companies need to define AI in practical terms for their specific use cases, such as customer service or recruitment. The focus should be on measurable outcomes rather than abstract debates. This approach ensures AI integration addresses real business needs and enhances operational efficiency.

  • Evaluating Technological Feasibility: Businesses must assess whether current AI technology can meet their needs. Projects relying on non-existent or speculative tech are too risky. Focusing on ready-to-use technologies helps align strategic ambitions with feasible AI capabilities.

  • Accessing AI Technology: Given AI's rapid evolution, in-house capabilities may be insufficient. Companies should evaluate the availability, costs, and timelines of acquiring necessary AI technology, including potential partnerships. This includes leveraging existing data for training AI models and ensuring compliance with ethical guidelines.

  • Determining AI Commitment Level: Organizations must decide the scale of their AI investment, whether it's a trial, strategic push, or major pivot. This involves weighing the risk/return profile of AI against other growth strategies. The decision should reflect the company’s readiness and the potential competitive edge AI might provide.

AI Trailblazer Takeaways: Implementing AI technology may not be in the cards for everyone. It needs to make sense for your business. HBR’s framework is a good first step towards making this decision.

Amazon leading by example

Amazon is significantly enhancing its finance operations by integrating generative AI, aiming to boost efficiency and reduce costs. This advanced technology is being utilized for tasks such as fraud detection, contract review, and financial forecasting, marking a major shift from traditional rules-based systems. With strategic investments and a focus on controlled implementation, Amazon is positioning itself at the forefront of AI innovation in the finance sector.

  • Adoption of Generative AI in Finance: Amazon is integrating generative AI into its finance operations to enhance efficiencies and reduce costs. This technology assists in areas like fraud detection, contract review, and financial forecasting. The shift from rules-based systems to AI represents a significant advancement in Amazon's finance strategy.

  • Implementation and Experimentation: While Amazon is eager to deploy AI quickly, they stress the importance of controlled implementation. Dave George, VP of Finance Technology, emphasizes that deploying AI into production must be well-managed. Currently, many AI applications are in various stages of experimentation and implementation.

  • Boosting Efficiency and Accuracy: Generative AI helps automate tasks such as validating value-added tax invoices and reviewing contracts. This automation reduces manual workload, allowing employees to focus on higher-value tasks. AI also aids in detecting and preventing financial fraud by identifying patterns that humans might miss.

  • Strategic Investment and Expansion: Amazon is investing heavily in AI, with significant increases in capital expenditures. Their cloud-computing unit, Amazon Web Services (AWS), is a major driver of this growth. AWS's AI capabilities not only support internal operations but also offer AI development platforms to other businesses, fostering broader industry adoption.

AI Trailblazer Takeaways: There are a lot of questions businesses have right now about how to integrate AI in their operations. Amazon is demonstrating some simple and practical applications which will not only make finance operations more efficient but also save on losses from fraud.

Book Spotlight

Jeremy Kahn being interviewed by Alyson Shontell, Fortune Editor-in-Chief,

Fortune’s AI writer, Jeremy Kahn, launched a new book, Mastering AI earlier this week. Leveraging his expertise and extensive contacts among leading AI companies and scientists, Jeremy Kahn’s book offers dramatic predictions on AI's impact over the next decade. These predictions range from reshaping our economy and transforming the way we work, learn, and create, to unraveling our social fabric, jeopardizing democracy, and fundamentally altering the way we think.

The well-attended book launch at NeueHouse in New York featured an author interview conducted by Alyson Shontell, Fortune Magazine Editor-in-Chief, readings from the book, audience questions, book signings, and a cocktail hour.

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Quote of the Week

The firm stance taken by the SEC demonstrates a lack of leeway when it comes to AI washing, indicating that, at least in the US, we can expect more fines and sanctions down the line for those who violate the regulations.

- Nick White, Partner, Charles Russell Speechlys

What are AI agents? (MIT Technology Review)