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Law firms as software providers, Part I of III · 28 September 2025

How about law firms becoming software providers (instead of being replaced by them)? Part I

The first of three essays arguing that a law firm's real exposure is not AI, it is renting the layer its differentiation lives in.

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What it argues

Written a year before the sovereign stack existed as a product, this piece asks the question the legal-AI market was avoiding: if most of what firms are buying is a wrapper around somebody else's model, what exactly has the firm acquired?

The argument is about dependency rather than capability. The labs underneath those wrappers lose enormous sums monthly, and they have both the technology and the incentive to move up the stack into the vertical their customers occupy. A vendor's differentiation, built from custom filtering and workflow constraints, is thin protection against the party that controls the model.

The alternative it proposes is the one we now build for a living: open-weight models on the firm's own infrastructure, at an infrastructure cost a mid-sized firm can carry, with the firm as the software provider rather than the software's customer.

This is our summary, not the article. The full text stays with the original publisher. Read it there.

The four claims
  • 01Most legal AI bought by firms today is a wrapper, and the differentiation is easy for the model owner to dismantle
  • 02The economics of the frontier labs make moving into their customers' verticals a matter of when, not whether
  • 03Open-weight models on your own servers are already good enough for the work, at a running cost a firm can plan around
  • 04The strategic move is to become the software provider, not to shop harder among them
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