How legal firms can start billing clients quicker with AI-enabled taxi reports
When meeting new clients in the past, you might have looked them up in the back of a taxi or asked an associate to pull together a quick report. But there’s no such thing as a quick search these days.
Here’s a question: how much time do you spend nurturing potential clients? It’s thought lawyers record only 2.6 billable hours a day on average, with the rest going towards nonbillable tasks. But what if firms could cut just one thing: the time it takes from initial meeting to billing new clients?
With a partner’s hourly rate standing at over £1500 per hour, scrolling through Google to learn more about a potential client is a poor use of their time. And with today’s lack of corporate dealmaking and the end of ultra-cheap money hitting their bottom lines, speed matters more than ever.
Why are taxi reports important?
With so much online noise these days, it takes at least an hour to find valuable information about individuals or entities, particularly if you factor in the time writing up the results. With the time-sensitive nature of gathering this information before a meeting, there’s just no such thing as a ‘quick’ Google search.
In fact, it’s estimated that search engines show just 4% of the internet. Without looking further, you could easily miss a key piece of information, like whether they would pass due diligence checks or not.
Enter Large Language Models and AI
Until now, creating a taxi report has been a manual process. But this kind of research can be significantly improved with AI and Large Language Models (LLM). With so much relevant information floating around the web, AI can automatically extract that and compile it into a digestible report (so you don’t have to).
Moreover, the volume of data available on potential clients can be overwhelming, especially for law firms dealing with multinational clients. Sorting through a vast amount of data and understanding its implications is a major time investment
But AI’s data processing capabilities can handle vast volumes of information in seconds and provide clear and concise insights into potential clients, eliminating the burden of information overload.
Most importantly, get the most out of partner time
Taxi reports that would take an hour or more to compile can now be produced in minutes, so partners can go into client meetings knowing more about their backgrounds. After all, first impressions are everything in the legal arena.
Armed with in-depth knowledge, partners can impress potential clients from the start. By demonstrating an understanding of their needs, history and preferences, lawyers can establish trust and credibility, increasing the likelihood of winning new business.
Why law firms should run taxi reports with AI
AI-powered taxi reports provide a deeper level of due diligence so lawyers can uncover potential red flags or risks associated with potential clients.
AI-generated reports deliver information in minutes, empowering law firms to expedite their decision-making process. Lawyers can swiftly evaluate potential clients, assess their fit with the firm’s expertise, and seize opportunities with increased speed and confidence.
A competitive edge
In today’s competitive legal landscape, AI-powered background reports give law firms an edge. They can act fast, deliver superior client service and build lasting relationships. By automating the research process, law firms can save on costs, allowing them to allocate their resources to analysis and strategic decision-making.
Client Background Reports: With and Without AI
Step 1: Research
Without AI… Researchers manually collect information from various sources, including online search engines, public records, social media, and professional databases. This process can take hours, or even days. It is prone to oversight or missing crucial data points.
With AI… In minutes, AI-powered tools gather data from a wide range of sources.
Step 2: Analysis
Without AI… Researchers sift through vast amounts of data manually, spending significant time analysing and cross-referencing information. This can lead to delays and potential errors in data interpretation.
With AI… AI algorithms can analyse data in seconds, quickly identifying patterns, connections, and potential risks. Lawyers can focus on interpreting the results.
Step 3: Risk identification
Without AI… Lawyers rely on their expertise to identify potential risks based on the gathered information. The process can be subjective, and there is a higher chance of missing critical red flags.
With AI… AI-powered tools use advanced risk assessment models to flag potential risks. AI algorithms can detect subtle patterns and correlations in the data, providing more objective and comprehensive risk identification.
Step 4: Real-time updates
Without AI… Traditional background checks may become outdated quickly. Reports must be manually updated periodically to ensure relevance.
With AI… AI continuously monitors and updates the data in real-time, ensuring that background reports are always up-to-date. This real-time updating feature allows lawyers to make well-informed decisions based on the latest information.
Step 5: Accuracy and consistency
Without AI… Human error in manual data collection and analysis can lead to inconsistencies and inaccuracies in the background report. Different researchers may interpret data differently, affecting the overall reliability of the report.
With AI… AI technology ensures a high level of accuracy and consistency in data processing and analysis. AI algorithms follow predefined rules and criteria, minimising the risk of errors and maintaining report consistency across various clients.
Xapien eliminates the need for firms of any size to choose between investing significant time in research, or risk meeting a client without comprehensive knowledge of their background.
If a partner needs information on a client, they can simply enter their name into Xapien, leave the software running in the background, and receive an executive-level report in under 12 minutes.
In half an hour, an associate could add a layer of strategic thinking.
Not only does Xapien screen lists of politically exposed persons, sanctions, and watchlists, it can also search the entire indexed web. It scours news articles, corporate records, and various internet data sources like LinkedIn, Wikileaks, and offshore leaks to uncover affiliations, assets, family members, and other crucial insights about your subject.
Every piece of data is meticulously sourced, enabling well-informed decision-making that can be easily verified and fully audited.
Subscribe to our guides…
Search engines are great but they are only the starting point. Finding, reading and condensing the full picture is slow, hard, and painstaking work. Xapien can help.