Why Are So Many In-House Professionals Joining AI Contract Startups?
They helped transform the legal departments at Microsoft, Google and Hewlett-Packard. But now they're looking to make a bigger impact on corporate law by joining legal tech disruptors.
September 21, 2018 at 05:00 AM
5 minute read
Flush with investment cash, artificial intelligence (AI) contract technology providers like Seal Software and LawGeex have started staffing their ranks with former corporate counsel, legal operations professionals and in-house technologists from some of the biggest technology companies around, including Microsoft, Google and Hewlett-Packard.
So what's behind this recent migration to the legal AI startup scene? For many former corporate professionals, it's all about the desire to have a hand in shaping the future of legal operations and to work in more creative and fast-paced environment.
Lucy Bassli, Microsoft's former assistant general counsel who became chief legal strategist at LawGeex in February, told Legaltech News that she moved to the AI company to help legal departments turn innovative ideas into reality.
“I hope to be able to inspire a lot of companies who LawGeex plans to engage and is already engaging with to think of holistic solutions and think about the best way to implement the technology within the totality of their resources, both human and technological.”
A desire to take a hands-on role in helping legal departments innovate also pushed Nicole Arbiv, who worked in various legal operations roles at Hewlett-Packard Enterprises for over a decade, to join LawGeex as its onboarding director in April 2018.
“For me, it was really around the notion that legal tech has become the up-and-coming thing that is driving the change of the legal profession, and you really see the true impact we are able to have on the legal profession as a whole,” she said.
To be sure, the AI contract market is a competitive space, and corporate professionals are discerning in joining only the startups they believe will have the biggest impact on the legal industry.
Dave Pasirstein, who was the director of the in-house tech incubator lab Horizon 3 at pharmaceutical company Merck, for instance, joined Seal Software in August as its new vice president of pharma, life sciences and health care. He said he did so because he believed in the company's vision.
“It's a rapidly growing company with some outstanding existing technology and a vision that, if we're all executing on all cylinders, can really change the legal tech space,” he told Legaltech News.
The sentiment was shared by his colleague, Julian Tsisin, who was senior program manager of legal technology at Google before becoming vice president of legal at Seal in August. Tsisin believes Seal's recent acquisition of Apogee Legal and its subsequent addition of legal subject matter experts in-house will be a key differentiator in Seal making change a reality in the legal industry.
Of course, there are other reasons besides wanting to impact legal's future that can factor in a corporate legal professional's decision to jump ship.
Stuart Brock, who was previously senior vice president and assistant GC at Bank of America Corp. before becoming a director at Apogee Legal in 2017 and Seal in 2018, said the top reason he wanted to join a legal tech startup was creativity. “I am a creative [person], and I have much broader options available to me in this industry versus in corporate America.”
While he had to be somewhat creative in figuring out how to manage legal risk at his in-house job at Bank of America, Brock noted he still felt he was “just repeating the same processes over and over again.”
Working at Seal, however “is very different,” Brock said, explaining that he is now working with legal departments to help them understand how to implement contract technology in their operations. Since each client's demands, goals and resources differ, the approach he takes differs each time.
For LawGeex's Arbiv, it wasn't so much the creativity that she enjoyed out of her new job as it was the faster and more streamlined workflow.
“If I'm speaking with a client and they're telling me there's something in the product they would like to see … I can turn to the product team, which sits behind me, and ask them to get it done,” she said, adding, “I just love how quickly we could get things done.”
Indeed, Shmuli Goldberg, LawGeex's vice president of marketing, said the ability to really have an impact on legal and work at a faster pace is a big part of the pitch his company makes to in-house professionals thinking about joining their team. “The message I try to convey is that by working in-house you are working for a company which is typically, but not always, relatively slow moving.”
Whether more in-house professionals soon fill more positions in AI contracting startups remains to be seen. But given how many of these startups are focusing more on in-house clients for their technology, it's likely they will want more people in their own offices who understand exactly what legal departments want and how they work.
“We believe the in-house market is one that is a lot receptive to efficiency and automation than law firms,” Goldberg said. “And our goal always has been and always will be to get the best possible products for our customers.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1Carol-Lisa Phillips to Rise to Broward Chief Judge as Jack Tuter Weighs Next Move
- 2Data Breaches in UK Legal Sector Surge, According to ICO Data
- 3Georgia Law Schools Seeing 24% More Applicants This Year
- 4After Shutting USAID, Trump Eyes Department of Education, CFPB
- 5‘Keep Men Out’: Female Swimmers Sue Ivy Leagues Over Lia Thomas’ Sweep
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250