In Bloomberg, Hugh Son reports:
" [JPMorgan's] program, called COIN, for Contract Intelligence, does the mind-numbing job of interpreting commercial-loan agreements that, until the project went online in June, consumed 360,000 hours of work by lawyers and loan officers."
The benefits to JPMorgan go behind simply eliminating the need for expensive expert manpower. As Son also notes, there are the benefits of speed (tasks are completed in seconds) and the error rate is lower than it is with humans. COIN operates on JPMorgan's private cloud network.
So, what is obvious is that the technology threat in legal services goes beyond B2C. The hit online services such as LegalZoom inflicted on the town lawyer could be small potatoes. B2B transactional legal services could be on their way to total disruption. Those lucrative financial services clients will someday no longer have to depend on sophisticated law firms to do myriad routine tasks.
COIN is not a stand-alone initiative at JPMorgan. Son also notes that the firm established "technology hubs" to pursue projects in cloud infrastructure, robotics and data. What results will not only be for internal applications. Also, they could be configured into profit centers. That's much like IBM transformed parts of its internal functions such as human resources know-how into revenue-producing businesses.
As many know who follow legal sector trends, the area of growth has been in transactional law. Litigation practices haven't recovered yet from the 2007 Crash. Currently, those in transactional should be wary.
In addition, the threats to those well-paying jobs in financial services keep accelerating. Firms like JPMorgan are now competing with startups. Their business models are in play.
Outplacement services in major metro areas are already bulging with those cut loose from financial firms.
A useful read in order to get one's head around all this change is "The Future Workplace Experience" by Jeanne Meister and Kevin Mulcahy. Here it can be ordered from Amazon.
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