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Welcome to this week's edition of The Legal Wire!

AI is facing increasing legal and ethical scrutiny. Chegg is taking Google to court, accusing it of using its content in AI-generated search summaries without compensation—a fight that could reshape how AI models source information. Meanwhile, an Israeli Supreme Court justice exposed a lawyer for citing AI-generated fake rulings, reigniting concerns over AI's role in legal practice.

On the policy front, Big Tech is railing against the EU’s strict AI regulations, calling them innovation killers, while U.S. companies struggle with a fragmented regulatory landscape in the absence of federal AI rules. And in Legal Tech, Linklaters tested AI on legal exams, finding improvement but persistent accuracy issues; proof that AI is evolving but still not ready to replace human expertise.

This week’s Highlights:

• Industry News and Updates

• Are We Ready to Prefer AI over Ourselves?

• Etain: The Smarter Way to Handle Investor Onboarding

• AI Tools to Supercharge your producivity

• Legal prompt of the week

➡️ Chegg Sues Google Over AI Search Summaries | Chegg is suing Google, alleging AI-generated search summaries use its content without compensation, reducing traffic and revenue. The company, now worth under $200 million, is exploring acquisitions or going private. Despite the lawsuit, Chegg continues developing AI-powered learning tools. Google denies wrongdoing, claiming its AI Overviews drive traffic to more sites.
^{February 24, 2025, Source: CNBC}

➡️ Supreme Court Justice Flags Lawyer for AI-Generated Fake Rulings | Israeli Supreme Court Justice Gila Kanfi-Steinitz exposed a lawyer for citing fabricated AI-generated legal rulings in a case involving the Sharia Court. Though the petition was rejected, she warned of the growing misuse of AI in legal arguments, emphasizing the risks of relying on unverified AI-generated content.
^{February 24, 2025, Source: The Jerusalem Post}

➡️ Google, Meta Execs Criticize EU’s Strict AI Regulations | At Stockholm’s Techarena conference, Google and Meta executives warned that strict EU AI regulations, including the AI Act and GDPR, are slowing innovation. Meta cited delays in launching AI-powered Ray-Ban glasses, while Google’s DeepMind argued the AI Act predates key breakthroughs like ChatGPT. Tech leaders, backed by the Trump administration’s push for minimal AI regulation, urged the EU to simplify rules to stay competitive.
^{February 21, 2025, Source: CNBC}

➡️ Linklaters Tests AI with Legal Exams to Gauge Reliability | Global law firm Linklaters has been testing AI’s legal capabilities using the LinksAI English law benchmark, assessing correctness, citation accuracy, and clarity. While AI models have improved—OpenAI o1 scored 6.4/10 in 2025, up from Bard’s 4.4/10 in 2023—they still produce errors and require human oversight. Linklaters sees potential for AI in drafting and cross-checking legal texts but warns against using it for legal advice without expert review.
^{February 19, 2025, Source: Irish Legal News}

➡️ Companies Navigate AI Regulations Amid US Inaction | With no federal AI rules, US companies face a patchwork of state and global laws, including the EU AI Act. While Trump favors minimal regulation, states like Colorado and Texas are drafting their own. Businesses fear compliance burdens, while global firms may default to EU standards. Trump's AI strategy, expected in six months, may offer clarity.
^{February 18, 2025, Source: Bloomberg Law}

Legal Technology

Are We Ready to Prefer AI over Ourselves?

I still remember the first time I asked ChatGPT to do something I would normally hire a person for. I only had to “ask” it to write short product descriptions for my online web shop. I was skeptical, how could a few lines of algorithm-generated text replace human creativity? But I was also surprised. The results weren’t just passable; they were actually good. “Faster and cheaper than a human,” I thought, and I found myself wondering, “Is this the beginning of a bigger trend?”

Artificial intelligence has come a long way in a relatively short time. We have AI tools now that can design pictures, compose music, and write coherent essays with startling proficiency. Many of these tasks were once deemed sacred human territory, requiring a distinctly human touch. And yet, here we are, witnessing AI handle these once-human-only jobs, and often doing it frighteningly well.

Read the whole article here

Legal Technology

Etain: The Smarter Way to Handle Investor Onboarding

Investor onboarding has long been a process that tests patience. Multiple rounds of paperwork, emails that never seem to end, and a constant back-and-forth to verify information – again and again. For lawyers and fund managers, keeping track of it all often results in quite a lot of tab hoarding, and significantly less actual work.

Etain aims to change that. Through the development of a new concept – intelligent workspaces for legal professionals, Etain will replace outdated manual processes with automation, AI-driven assistants, and structured workflows. In addition to the first intelligent workspace, which will serve investor onboarding in private funds, additional workspaces for legal use cases are to come. The result is a faster, more accurate, and far less frustrating onboarding experience for legal teams, knowledge workers and investors, which scales with the needs of the user.

Read the full article here

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This prompt helps lawyers anticipate challenges before they arise, improving the strength of their legal arguments. By stress-testing positions against potential counterpoints, lawyers can save time refining their strategies and gain a competitive edge in litigation or negotiations.

Prompt: Critically analyze and challenge your legal argument for [specific case or issue]. Identify potential weaknesses, opposing counterarguments, and areas where the reasoning could be stronger. Provide recommendations to refine and strengthen the argument for maximum persuasiveness.

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