Legora tests its AI agents for law without client data

Legora, a company with AI for law, got $550 million in October at an $8.8 billion valuation. Its chief technology officer, Jacob Lauritzen, tells how its agents for lawyers write Word documents and examine thousands of contracts. An agent is software that does tasks without help from a person, and Legora has more than 1,800 customers.

How it works

Legora cannot read user files, and many are the files of law firm clients. A team of engineers and lawyers makes test worlds that copy customer work. One test is a data room of 10,000 files, where the agent must find the right risks.

The numbers

Yearly revenue was more than $100 million in April. Lauritzen estimates that models do about 60% of work in law correctly. Legora puts failures in 10 to 20 known types, but it gave no test results.

What is not known

Lauritzen thinks the AI labs will not cut Legora off, as they did with companies that make tools for code. This is the view of Lauritzen, with no sign to show it. Lauritzen also says that a good junior lawyer does much more work at this time, with no data.

Insight: Own expert tests may protect Legora

Workday cut its agents from 50 to 20. The chief technology officer of Dell says that the edge is the special knowledge of a company. Legora must make test worlds with lawyers, because it cannot read client files. This reads as: expert test sets are hard for the AI labs to copy. Look at if the labs launch agents for law.