Revolutionizing the Legal Industry: Insights from Jordan Furlong

In the first episode of Season 9 of “Notes to My (Legal) Self,” legal analyst Jordan Furlong shared profound insights on the pressing issues facing the legal profession today. Furlong’s perspective centers on innovation, systemic challenges, and the influence of generative AI (GenAI) within the industry.

The Legal System’s Challenges

During the discussion, Jordan highlighted a crucial fact: the current legal system is faltering. Despite its size and entrenchment, significant flaws are becoming increasingly visible, including:

• Inaccessibility of legal services for many individuals
• Widespread dissatisfaction among legal professionals
• Frustration among clients and judges

“We’ve reached a point where business as usual isn’t just insufficient — it’s harmful,” stated Furlong. He pointed out that both clients struggling with legal costs and lawyers experiencing burnout reflect a deeper need for transformation within the system.

Generative AI: A Double-Edged Sword

Furlong emphasized that while GenAI is captivating attention across various sectors, it should not be viewed as a panacea for the problems plaguing the legal field. Instead, he described it as a tool that unveils existing inefficiencies and flaws. “GenAI won’t solve all our problems, but it makes the existing flaws impossible to ignore,” he remarked, likening the technology to transforming a black box into a visible fish tank.

The real challenge lies in how the legal profession adapts to leverage AI to improve its business frameworks, enhance client interactions, and increase access to justice.

Rethinking Legal Business Models

At the core of the challenges faced by the legal industry is an outdated business model predicated on billable hours, which often encourages inefficiency instead of fostering genuine client relationships. “If law firms were focused on outcomes and value instead of time spent, AI would be a facilitator, not a threat,” Furlong explained.

He advocated for a transition to “relationship pricing,” where the value of the lawyer-client collaboration is measured over time rather than in increments of six minutes. This shift prioritizes trust and long-term impact over transactional billing.

Self-Regulation and the Terminology Trap

Furlong criticized the legal profession’s current self-regulatory framework, emphasizing, “Self-regulation is a privilege, not a right. If we don’t act in the public’s interest, someone else will.” He called attention to the use of terms like “nonlawyer,” which perpetuates exclusionary thinking and hinders innovation. “We don’t hear nurses talk about ‘nonnurses,’” he quipped, challenging the profession to embrace a broader perspective focused on the public good.

Transforming Legal Education and Collaboration

The advent of AI necessitates a re-examination of how lawyers are educated. Furlong lamented the disconnect between law school curricula and practical realities, particularly with regard to AI’s role in the future of law. He urged educational institutions to incorporate AI in their teachings, promote interdisciplinary collaboration, and cultivate environments ripe for innovation.

Beyond academics, Furlong stressed the importance of practicing lawyers engaging with other professionals—such as data analysts and technologists—to foster meaningful change within the sector.

A Call to Action

As the discussion wrapped up, Jordan imparted a critical message to the legal community: “The biggest problem in the legal profession isn’t AI or regulation or the billable hour — it’s learned helplessness.” He remarked that many within the profession feel powerless to enact change, asserting, “We can do something. We must. If we don’t stand up and take action now, there won’t be anyone else to fix it for us.”

Conclusion: Embracing Change

Furlong’s insights underscore both the formidable challenges and the expansive opportunities currently available to the legal profession. By rethinking pricing models, embracing technological advances, and fostering collaborative practices, the legal industry stands at a pivotal juncture. The path forward calls for a courageous and innovative approach to creating a legal system that effectively serves everyone.

Olga V. Mack is a Fellow at CodeX, The Stanford Center for Legal Informatics, and Generative AI Editor at law.MIT. She is passionate about legal innovation and enhancing the future of law, authoring several thought-provoking publications on the subject. Connect with her on LinkedIn and Twitter at @olgavmack.