Two Attorneys Walk into an AI Platform: Tech May Not Really Provide an Unfair Advantage

Here's a common scenario in lower middle market M&A, particularly as both the AI boom and the ETA/search wave continue:

Two attorneys sit across the table from each other to negotiate the sale of a dependable, mom-and-pop home services business. It has decades of profitability and a lot of room for operational improvement (e.g., systems, procedures, tech, data, and talent). The buy-side attorney specializes in M&A. The sell-side attorney is running a busy practice focused on general business law (e.g., entity formations, commercial contracts). While the buyer’s attorney is smart, he very rarely deals with M&A. Both attorneys use AI tools (to perform legal research, pull relevant provisions from databases, and even draft and review documents) to assist with the transaction.

AI tools (and good forms) may help the less experienced attorney competently hit the fundamental deal points (which I think is a great thing). AI will not, however, make up for the gap - in understanding the nuance, market trends/data, and contextual application of those deal points. For the less-experienced attorney, using the AI tool to pull/draft language may allow them to marshal a competent response to the other side's comments/markups. If they do not take time to understand the precedents from which language is scraped or learn why certain deals incorporate certain deal mechanics, that AI won't save them.

In the midst of the hand-wringing regarding AI, real life examples prove useful. AI is not good or bad. For those most critical of AI - it is some kind of intellectual performance enhancing drug (PED). But even if two athletes both use PEDs, if one is more talented and/or more hardworking, guess who wins? So much for an unfair advantage.

Yes, AI can help a professional (an attorney for example) expand their services into areas in which they have more limited experience. (Sidenote: I look forward to talking more about AI as a tool for professional development). However, AI will not automatically create expertise or experience that was not already there. And AI may not erase or bridge a skill/experience gap as much as you might think.

If you are potential buyer who wants to work with a firm that leverages both AI and human skill and experience, let's talk.

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