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In Search of A Positive Spin on the Economic Impact of Machine Learning

The practical application of machine learning to e-discovery, commonly referred to as predictive coding, has begun to move from just a debated topic, to an applied technology. As developers of machine learning explain the efficiencies of their processes, law firms and review companies have the same natural reactions that most do when learning about an industry changing technology. These reactions include the initial confusion of how this complex technology works, the doubt of putting decision making into the hands of computers and the concern of potentially having jobs replaced by the new technology. As discussion of the projected impact of this technology has begun to find its way into the mainstream media, it is the jobs impact issue that seems to be getting a lot of ink these days, perhaps highlighted by the concerns of an economy that is still seeking traction.

Take for example the recently released book  - Race Against The Machine: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy, by Erik Brynjolfsson and Andrew McAfee. In a Yahoo! news blog interview of McAffee, the research scientist for MIT’s Sloan School of Business suggests that a busboy might have less anxiety about job prospects than a lawyer due to advances in technology. This is a comparison that seems a bit far-fetched and one that preys directly on the fears of an uncertain economy.

But the attention focused on jobs impact is nothing new, back in March the New York Times ran a story headlined “An Army of Expensive Lawyers Replaced by Cheaper Computers.” And while the story did discuss the benefits of machine learning, it is also implied that the technology was putting lawyers out of work by eliminating them from the document review process. In practice this is not true. The intention of machine learning is not to replace lawyers, but rather to reduce the burden on lawyers as they deal with an overwhelming deluge of data.

Servient has developed applications and technologies that greatly reduce the time and cost of document review. It is critical to understand though that our learning technology, Predictive Review, is based on the input of skilled legal knowledge. We don’t eliminate the lawyer and their knowledge of the case; in fact it is intrinsic to our process. What we do accomplish is to speed the process and free the legal team from the burden of reviewing documents that are irrelevant to the case. A key economic benefit is that we reduce costs that can be passed on in the form of savings to the client; an opportunity that we feel will ultimately provide the firm that uses it with a competitive advantage in the marketplace.

Rather than focus on the fears that a troubled economy may foster we suggest that a more holistic discussion of advanced learning technology and its place in the e-discovery process be taken. We would begin our dialogue by stressing that the developers of e-discovery machine learning technologies are not removing lawyers from the document review process. Machine learning technology, such as our Predictive Review, can free up legal talent from the burden of reviewing documents that are irrelevant to the case and focus on the documents that are relevant. The result is a gain in productivity and increased intellectual availability, which are arguably very positive economic impacts.

When one considers the impact that advanced technology has on the legal profession, it is helpful to ask whether reviewing a mountain of completely irrelevant email is truly a lawyer’s job; or is it instead more aptly described as a wasteful increase in the cost of litigation.  The advanced technology that reduces the burden created by the mountain of irrelevant documents involved in today’s electronic discovery does not do away with lawyer jobs. Instead it helps to preserve the economic viability of litigation.

Posted in Cost Containment, Document Review, Predictive Review | Leave a comment

E-Discovery Search: Focus on Negotiating the Search Process Not Keywords

While I hate to show my age, this blog topic reminds me of a statement I heard at one of the first e-discovery seminars I attended in San Francisco in the 1990s. In those early days, someone from the audience commented that e-discovery will require the parties to cooperate in litigation. A panelist who was then General Counsel of one of the largest tech companies in the world responded with tongue in cheek: “Yes and the litigants will all join arms, sit around a campfire and sing Kumbaya.”

I think it is safe to report that in late 2010 counsel in litigation are still not joining arms with their opponents and singing Kumbaya together. Many lawyers still remind us that e-discovery is part of an adversarial process and clients pay their lawyers to win, not to make friends with the other side.

However, the ever-increasing cost of e-discovery and the growing volume of data that lawyers are facing is resulting in some movement towards a more cooperative process. There is no doubt that we are seeing more reported cases where judges are requiring parties to cooperate on search protocols. See Gibson Dunn’s 2010 Mid-Year Electronic Discovery and Information Law Update. And, many courts are referring specifically to the Sedona Conference Cooperation Proclamation in their opinions.

There are a number of practical reasons why counsel should seek input from their opponents in the search culling phase of e-discovery. Providing some transparency to the search process and engaging the opponent in negotiation will head off many of today’s e-discovery disputes. A party who has agreed to, and been involved in, a search process is less likely to complain about the scope of the document production. Even if the opponent refuses to participate in the search phase (which still is common), the fact that a party attempted to engage the opponent in the process should have some influence in the event of an e-discovery dispute.

Engaging the opponent, however, can increase problems if counsel focus solely on an agreement regarding keywords. The requesting party is primarily interested in finding the relevant documents and has less of a concern with the burden of review imposed on the responding party. This often results in the requesting party proposing very general search terms which will further drive down the responsive rate and substantially increase the cost of review.

It is still common today for us to receive a list of search terms with the collected data and a request that all files returned by the search be loaded into the review system. It is not uncommon for us to also hear that the parties have agreed to the keywords so “just run them.”

Developing search terms without access to search the data and evaluate the effectiveness of the search is probably the most costly decision counsel can make in the e-discovery process. And, entering into an agreement with the opponent to include more general terms without testing the search is likely to make matters even worse.

The reality is that the keyword agreement is often not in the interest of either party. The studies (TREC Legal etc.) have consistently found that a list of keywords produce a low recall rate meaning that the search is not finding a large percentage of the responsive documents that the requesting party is is trying to discover. At the same time, the list of keywords often produces a very low precision rate which means that the producing party is burdened with the cost of reviewing a large percentage of non-responsive documents.

Instead of agreeing on a single list of keywords, counsel should look to obtain agreement on the process; after all search is a learning process not an event. The touchstone should be transparency of the process.

Counsel should not expect that they will obtain agreement to implement “black-box” technology. Advanced technology to supplement (not completely replace) keyword searching is available. Active learning technology can identify more relevant documents than simple keywords and can also slash the amount of irrelevant documents that must be reviewed. Technology, such as Servient’s Predictive Review, can be combined with input from the opponent to craft an iterative search and analysis process that is the interest of both parties. Add statistical validation to the mix and you truly have an improved process that will change the economics of e-discovery.

The first step, however, is for counsel to begin to negotiate the parameters of the process. No amount of rule changing will move us beyond the current issues we face in e-discovery; the answer lies in the adoption of reasonable technology solutions.

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The Most Important E-Discovery Metric: The Responsive Rate

An essential step to improving quality and efficiency is to measure the effectiveness of the current process. Without measurement, we cannot evaluate the effect that new technology and process changes will deliver.

For years, the e-discovery industry has focused on review speed (number of documents reviewed per hour). There is no doubt that the speed of review is important. But, I would argue that the “responsive rate” is the most important metric when it comes to e-discovery cost containment – and is commonly overlooked.

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Posted in Cost Containment, Predictive Review, Search, Statistical Sampling | Leave a comment

Cost of Document Review: The Elephant in the E-Discovery Room

Anyone who has managed a litigation budget would agree that controlling the cost of litigation often seems like an impossible endeavor. Litigation budgeting has always been challenging because of the unpredictable nature of cases and the inescapable fact that you cannot control the burdens imposed by your adversary or the court (and sometimes your own client).

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Posted in Cost Containment, Document Review, Predictive Review | 1 Comment
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