Thomson Reuters is transforming the legal industry with the launch of CoCounsel Legal, an advanced AI platform designed to enhance legal drafting and research, emphasizing that AI is reshaping rather than replacing attorneys.

CEO Steve Hasker highlights that the legal profession is experiencing its most significant disruption in over 300 years due to generative and agentic AI, fundamentally altering how legal work is produced.

Thomson Reuters plans to invest heavily in AI, with an anticipated $10 billion in funding by 2027-2028, including acquisitions like Safe Sign and Casetext to accelerate AI integration.

The company's acquisition of Casetext for $650 million was driven by the need to combine top AI solutions from both teams, especially in developing legal AI assistants.

TR has shifted from a content publisher to a content-driven technology company, focusing on seamless AI integration of proprietary and third-party content.

Industry transformation is expected to unfold in three phases: experimentation, process reengineering, and future business model changes, with the latter at least five years away.

The legal industry faces revenue model challenges, especially with traditional per-hour billing, which complicates adopting innovative AI practices without disrupting existing financial structures.

While nearly all law firms are experimenting with AI tools, few have developed comprehensive strategies or clear plans for successful transformation.

Small and solo practitioners are adopting AI tools more rapidly than larger firms due to cost efficiency and ease of use, exemplified by a solo lawyer eager to implement TR’s AI solutions immediately.

Hasker’s key realizations about AI’s disruptive potential include ChatGPT passing the bar exam and observing diverse reactions at a law firm event.

Hasker emphasizes the importance of professional-grade AI that ensures data security and privacy, criticizing open AI’s privacy claims and advocating for tailored legal solutions.

He also advocates for strong copyright protections to incentivize content creation, opposing weakening protections despite AI advancements, citing U.S. content quality as a competitive advantage.