Companies that look to profit from lawsuits are using AI to identify potential cases. Legalist’s algorithm, known as “the truffle sniffer,” searches for suits by analysing variables such as the court, judge, and case type. Other companies like Qanlex have also developed software to screen, rank, and compare cases. However, AI has certain limitations, such as the lack of publicly available data and the inability to assess the value and merit of a case. Although AI can predict case outcomes, timelines, and settlement amounts, it is only as reliable as the data it can access. Therefore, most companies still rely on human underwriters to perform due diligence and underwriting before investing capital.
Source: Bloomberg Law
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