DGS
27 posts



Aqui no tjrj se vc tropeçar dentro do fórum sai uma grerj de R$ 1.000,00 pra pagar






The Harvey fundraise at an $11 Billion valuation is really interesting, and on the verge of head scratching. Harvey feels like it competes with Lexis Nexis and Westlaw, which are the other two legal tools every major law firm has. I used Lexis's AI tool a lot in my prior role. It was decent and seemed to improve over time. I assume Lexis will continue to improve it. It honestly competes with ChatGPT and Gemini more than Harvey. The law firm lawyers I know who use Harvey like it, but it's not their sole AI tool. Like every AI tool on the market, it also has limitations and pain points. Lexis is owned by RELX PLC and that conglomerate has a market cap of ~$65B. Westlaw is owned by Thompson Reuters and that conglomerate has a market cap of ~$55B (has been swinging, in part due to news about AI advancements and competitors like Harvey). The interesting thing is that Lexis and Westlaw have legacy businesses built on datasets of legal precedents and carefully curated regulatory materials like opinion letters and legislative history. They also offer other products that drive material revenue, like Lexis's identity verification databases and value-added services. Harvey doesn't have those things. And unless it can displace Lexis or Westlaw, it doesn't seem like it can earn the fees that those providers currently take from law firms on an annual basis. Legal revenue is an estimated 25% of Lexis's business — is Harvey really already on par with Lexis in the legal space vis-a-vis its $11B valuation? Westlaw drives closer to 40% of Thompson Reuters revenue, so maybe Harvey does still have room to double its valuation off of fee revenue. But that feels like a tough mountain to climb. I'm also skeptical that Harvey can survive the thousands of paper cuts of lawyers opting for more general use AI tooling from the likes of Anthropic, Gemini and OpenAI. Anthropic has made amazing strides in general business work product, and all three are useful tools in developing memos and contracts. There's also a last issue facing Harvey. If it replaces too many associates or associate hours, law firms aren't replacing costs — they're ripping out revenue generators. As someone who hires law firms, I'm not paying Cravath or MoFo $1,000 an hour for a partner to use Harvey. I'm paying those rates to get an associate, counsel or partner who has specific knowledge and skills to advance my project faster. It's great for me if Harvey usage shaves 5 hours off my bill on a project. But not good for the law firms, because I don't have some magic increase in projects to help them make up the lost revenue. Law firms who adopt Harvey more will have to change their billing models. And I'm not sure you can teach that many old dogs the necessary number of new tricks to keep pumping up Harvey's valuation. Okay. Rant over. Going to touch grass for 20 minutes.




































