In a significant development for the legal technology sector, London-based startup Orbital Witness has launched the world’s first insurance-backed accuracy guarantee for its AI-powered legal software.
This new “AI Reliance” insurance, developed in partnership with First Title Insurance, aims to bolster the reliability and trust in generative AI used in legal due diligence and client reporting processes.
Orbital Witness, founded in 2018, has rapidly become a prominent player in the legal tech space by using artificial intelligence to streamline the due diligence process for property transactions.
Love seeing the progress. You’re doing the most interesting work I’ve seen for transactional lawyers. 👍
— Augie (@augierakow) August 22, 2023
The company’s technology is utilized by over 4,000 professionals, handling more than 60,000 property transactions annually. Their client base includes major real estate firms such as Linklaters, Herbert Smith Freehills, Clifford Chance, and corporations like PwC, Zurich, and Tesla.
The collaboration with First Title Insurance, part of the First American Financial Corporation, represents the first instance of an insurance company underwriting the output of a legal tech AI product.
This insurance addresses potential errors in AI-generated outputs that could lead to compensation claims, offering a critical safety net in the highly regulated legal sector.
“Law is a highly regulated sector. Law firms are ultimately responsible for the services they provide to their clients.
When adopting any new technology, firms must be able to satisfy the regulator (and their own insurers) that new technology is safe to use and won’t create additional risks to their clients.
Generative AI is no different from other technologies in this respect.”
Ed emphasized the importance of this innovation, noting that law firms must satisfy regulators and insurers that new technology is safe and does not introduce additional risks to clients.
The AI Reliance policy initially targets law firms using Orbital Witness’s residential property product, Orbital Residential. It provides substantial coverage that aligns with regulatory requirements, ensuring firms do not need to claim their professional indemnity insurance in case of an error.
“AI is increasingly being applied to speed up and reduce the cost of real estate transactions. Law firms and conveyancing businesses need greater confidence that the AI technology they adopt is safe to use, can be relied upon and is compliant.
First Title’s innovative insurance policy is the first of its kind and stands to be transformational in the professional services industries, creating a benchmark for other AI providers to aspire to.”
This partnership sets a precedent for integrating insurance into AI products, potentially becoming a standard ensuring that various industries’ AI applications are financially accountable and compliant with regulatory standards.
Legal teams are leading the way in terms of AI adoption and real world impact. Here’s the data to prove it 🔥 https://t.co/ImCdZTLfWz
— Jason Boehmig (@jboehmig) June 12, 2024
Orbital Witness’s initiative demonstrates how AI can be responsibly integrated into professional services, promoting greater trust and accelerating the adoption of AI-driven solutions in property transactions and beyond.
This move could herald a new era of trust and reliability in AI technologies as more AI providers consider similar insurance-backed guarantees.
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