Morgan & Morgan Commits to $1 Billion For Legal Tech + AI

Morgan & Morgan, the largest plaintiff law firm in America, has announced it will spend at least $1 billion on legal tech and AI over the next 10 years, as it formally unveils MX2, its own legal AI platform.

In June this year, a Reuters article reported their revenues at $2.4 billion. So, $1 billion over 10 years, is $100m per year, which is still a lot of money….but, is around 4% of annual total income for the firm. Interestingly, the same article – here, suggests the firm recently has been exploring the idea of external investment.

The firm stressed that it’s not only Big Law firms that can make major investments into AI. They added that the new plans build on the $300m that Morgan & Morgan has spent in the last five years on tech already.

Co-founder, John Morgan, commented: ‘Firms which bill by the hour to draft and review agreements or read through thousands of pages of documents, are the practices AI will replace almost entirely.

‘That’s white shoe, Big Law territory. Trial lawyers are a very different story. No robot is walking into a courtroom to deliver a closing argument. Big Law is just beginning to think about AI investment, but we’ve been building for years to better service our clients’ needs. We have been years ahead of the industry and are committed to maintaining our lead.’

Of course, some large commercial firms may have a different perspective.

In terms of what MX2 does, it has several core aspects:

• ‘MX2 Agent: case insights, trial prep, and agentic workflows embedded directly in Litify [ a legal tech platform – see here. ]
• First Draft: case-aware document generation with full Microsoft Office integration;
• Medical: medical record extraction, chronology building and alerts;
• Search: semantic search across unstructured case data to find the key factors in a case.’

The firm added that it ‘orchestrates the entire case lifecycle from intake through outcome with speed and accuracy by securely accessing and processing police reports, medical records, court dockets, and client interactions’.

And they added that ‘MX2 is able to spot patterns and set benchmarks,’ as it works.

They concluded that MX2 has already ‘fulfilled hundreds of thousands of medical record requests, and retrieved vast numbers of police reports through automated systems, while contributing to significant increases across key rate metrics like demands and discovery responses. For clients, that translates directly into faster case resolution, [and] stronger case valuations…’.

Is this a big deal?

Well, it’s perhaps not the numbers so much – given the total revenues of the firm and the time-scales involved – that will have a long-term impact. Rather it’s the fact that plaintiff firms are what one might call ‘efficiency receptive’ businesses.

I.e. using AI to speed things up is a win-win for them, as it reduces their operating costs – which they may not be able to bill to anyone – and allows them to take on more matters which may only result in a payday if there is a successful case.

Thus the bigger story here – and this connects to companies such as Supio, EvenUp and Eve, to name a few, is that AI is working with the business model of this type of firm.

We see the same with NewMods, which go to market on speed and price, rather than no-win, no-fee. But, they are also highly ‘efficiency receptive’.

In short, this is all about how AI works well with some business models, but is more complex for others to take full advantage of.

More here.

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