A few weeks ago, I wrote about how one start-up lawyer is changing his business model because of AI’s impact (see here). A few people reached out to me after that post and shared their perspectives on the disruption of legal services and other industries by AI. This topic is clearly top-of-mind for more people than I realized.

Today I read a blog post (see here) from Fred Wilson, founder of the famed venture capital firm Union Square Ventures (USV). Wilson describes having always been uncomfortable with the legal costs that USV incurs to close financing rounds for new start-ups they invest in. His latest quote was $50k for a deal he was working on last month (and the start-up’s lawyers probably charge it something similar, so the total for both parties is about $100k).

Wilson decided to try something different. He loaded Google’s NotebookLM with all his firm’s historical closing docs and the start-up’s data room docs. He asked NotebookLM a bunch of questions, and it pinpointed one issue, which he resolved with the start-up and its lawyers.

The end result was that with two hours of Wilson’s time and no legal fees, he was able to get comfortable with the deal docs (and, I assume, close the deal or get it close ready). That’s a tremendous cost and time savings.

This is a very interesting use case of AI empowering law firm customers, specifically investment firms, to move faster and at lower cost. It confirms what the start-up lawyer I spoke with last month believes: AI is disrupting the legal industry by empowering lawyers’ clients, and law firms will be forced to adapt.