News You Can Use

Edition 33 · 1st - 14th Jan 2026

News You Can Use

Deep Dives

Three stories worth sitting with

Menlo Ventures - 2025: The State of Consumer AI

Menlo Ventures - 2025: The State of Consumer AI

What
The report describes how the consumer AI market in 2025 has begun to consolidate around a few dominant players. ChatGPT remains the clear leader because people tend to commit to a single assistant, but Google's Gemini is catching up quickly through rapid growth and viral creative tools. OpenAI is building a single, integrated "everything app," while Google spreads its capabilities across multiple touchpoints. The competitive frontier has shifted from impressive visuals to deeper reasoning, accuracy, and search-grounded outputs. Smaller players (like Anthropic and Perplexity) win by focusing on specific, opinionated use cases for power users. Looking ahead, fully multimodal systems, stronger enterprise adoption, and app-store-style ecosystems are likely to drive the next phase of growth.
So what
This highlights the importance of making deliberate choices about which platforms to adopt, which tools to integrate into our processes, and where to focus experimentation. It also emphasises that user behaviour and engagement patterns matter: stickiness, power-user adoption, and multimodal capabilities will shape which tools become strategic over the long term. Understanding these dynamics helps us design workflows, pilot programs, and client solutions that leverage AI effectively, without being distracted by hype or chasing every new model release.

Harvey - Pathways: A Roadmap for Law Firms

Harvey - Pathways: A Roadmap for Law Firms

What
The Pathways Project - a collaboration between The LegalTech Fund, Harvey, Leaders' Quest, and ALM - released its first-phase findings on how the legal industry could evolve through 2040 under the influence of AI and data. It identifies six key shifts reshaping legal work, including transitions from billable hours to outcomes-based value, from bespoke work to scalable platforms, and from static documents to dynamic data models. The report positions these shifts as a framework for law firms to understand technological, economic and talent pressures and opportunities as the industry evolves.
So what
This report reinforces that change in the legal market is structural and long-term, instead of experimental. It validates strategic conversations we are already having around workflow redesign, new pricing models, scalable delivery and data-led services. We can use the Pathways framework as a guideline for our internal planning - distinguishing short-term pilots from strategic investments that move us toward value-based outcomes and more predictable, platform-driven delivery over the next decade. It also provides key pointers for client conversations about the future of legal services in a world where traditional leverage models are under pressure.

MIT Technology Review - What is a "Parameter"

MIT Technology Review - What is a "Parameter"

What
The article unpacks the concept of a parameter - the fundamental building block inside large language models (LLMs). Parameters are the "dials and levers" that control how models behave, set during training through iterative adjustments to reduce error and determine model outputs. Training involves updating billions or trillions of parameters to capture patterns in language, and complex embeddings, weights and biases help models understand meaning and relationships between words across large contexts.
So what
This kind of foundational clarity helps when we evaluate, select and explain models in enterprise legal settings. Understanding that parameters are the mathematical core that shapes reasoning, nuance capture and output reliability reminds us why model architecture and training data matter. It also provides useful grounding when explaining to colleagues and clients why different models behave differently (even with similar prompts), and why evaluation metrics beyond parameter count (such as reasoning quality, handling of legal context, and determinism) are critical for legal AI adoption.

Worth Reading

Everything else worth a click

Claude Code and What Comes Next

Ethan Mollick argues we have moved beyond 'autocomplete for code' to fully autonomous agents that can build and deploy applications. A glimpse into the near future where legal drafting shifts from assistance to full-stack execution.

Memory in Harvey

Harvey introduces persistent memory, allowing the system to learn preferences and context across different matters. This marks the shift from stateless chat to personalised, longitudinal legal assistants.

Notebook Lawyer

A brief look from Fred Wilson (AVC) at the 'Notebook Lawyer' concept - using tools like Google's NotebookLM to digest complex legal agreements. A signal that client-side AI tools are becoming powerful enough to challenge billable hours.

The Era of Vibe Coding

You no longer need to know syntax, just the requirements (the 'vibe'). As the barrier to building software collapses, we may see a wave of lawyers building their own bespoke internal tools rather than buying them.

Lawvable: Getting Started

A practical resource for 'Agent Skills' - standardised, portable instructions that teach AI agents how to perform specific legal tasks (e.g. GDPR reviews). A move towards shared standards for agentic workflows.

Reimagining the Legal Industry

The blog introduction to the Pathways report. Frames the industry's transition into 'Horizon 2' - a messy middle ground where firms must pivot from labour-intensive production to tech-enabled scalable expertise.

State of Consumer AI 2025 (PDF)

A landscape report highlighting a 'winner-take-most' market (ChatGPT vs. Gemini) and the rise of 'viral creative tools'. Useful for lawyers to spot the upstream user behaviours that will eventually hit the enterprise.

Pathways: A Roadmap for Law Firms (PDF)

A strategic report by Harvey and The Legal Tech Fund. It argues value is shifting from 'time spent' to 'outcomes delivered' and offers a framework for firms to navigate the 'profitability paradox' of investing in AI while current profits remain high.

85 Predictions for AI and Law 2026

A massive crowdsourced list of predictions. The consensus? No AGI in 2026, but expect 'AI neutrals' for dispute resolution and specific court rules sanctioning lawyers who cite hallucinations.

MIT Technology Review - What is a "Parameter"

A clear, non-technical explainer from MIT Technology Review on the 'atoms' of Large Language Models. A good primer to send to colleagues who still treat AI as magic rather than math.

Three Legaltech Whitespace Plays

A strategic analysis identifying three specific gaps in the current market where legal tech founders (or intrapreneurs) could build valuable tools, rather than competing in crowded verticals.

The First Step in Legal AI Evaluations

Argues that we need to stop testing models in the abstract and start benchmarking the specific 'artifacts' (documents, answers) they produce. A mature take on how to actually measure quality.

The Tools Lawyers Might Build

Complements the 'Vibe Coding' piece above - suggests that as coding becomes easier, the most valuable legal tools will be built by practising lawyers solving their own niche problems, not by external software vendors.

How AI Destroys Institutions (PDF)

A critical academic paper arguing AI is anathema to institutions like the law because it erodes expertise, short-circuits accountability, and isolates humans. A necessary counter-narrative to the efficiency hype.