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Welcome to this week's edition of The Legal Wire!
This week, legal AI looked less like a shiny add-on and more like a power contest over distribution and data. Legora is reportedly back fundraising at a dramatically higher valuation, while Thomson Reuters’ Noetica deal underlines the new advantage: proprietary deal terms, embedded directly into lawyers’ workflows. At the same time, pressure is rising from the outside as copyright holders are moving fast to curb generative video, and regulators are probing whether cloud + AI bundling is creating baked-in advantage.
The throughline: the winners won’t be the loudest. They’ll be the ones with defensible data, clear provenance, and products that hold up when scrutiny arrives.
This week’s Highlights:
Industry News and Updates
Information Chaos: The Hidden Cost of Understanding Client Information
AI Regulation Updates
AI Tools to Supercharge your productivity
Legal prompt of the week
Latest AI Incidents & Legal Tech Map


Headlines from The Legal Industry You Shouldn't Miss
➡️ Legora Targets $6B Valuation in Fresh Fundraising Talks | Legora is reportedly back fundraising just four months after its last round, with discussions that could lift its valuation from $1.8B to $6B. The timing is striking: the talks come shortly after an AI-driven selloff in legal and information-services stocks, yet Legora is pushing ahead, pointing to its platform depth and momentum with top-tier firms as it scales globally.
Feb 16, 2026, Source: Tech Funding News
➡️ ByteDance Moves to Rein in Seedance After Disney Copyright Threat | ByteDance says it will tighten safeguards around its AI video tool Seedance after Disney sent a cease-and-desist letter alleging the model was fed a “pirated library” of protected characters. A surge of realistic, viral clips tied to Seedance 2.0 were reported, including content resembling Marvel and Star Wars IP, while ByteDance has not disclosed its training data. Pressure is widening: SAG-AFTRA and the Motion Picture Association have criticized the tool, and Japan has reportedly opened an inquiry, underscoring how fast copyright enforcement is becoming the practical constraint on generative video.
Feb 16, 2026, Source: BBC
➡️ FTC Turns Up Heat on Microsoft’s Cloud + AI Play | The FTC has intensified an antitrust probe into Microsoft, issuing civil investigative demands to rivals for details on licensing and bundling practices tied to Windows, Microsoft Office, and Copilot. Investigators are seeking evidence that Microsoft makes it harder or more expensive to run its products on competing clouds, and that it ties AI, security, and identity tools into core offerings. The investigation echoes earlier scrutiny by UK regulators and revives familiar concerns about “baked-in” advantage, this time around cloud and AI, including Microsoft’s deep reliance on OpenAI.
Feb 13, 2026, Source: Bloomberg Law
➡️ Thomson Reuters Buys Noetica to Add Real-Time Deal Intelligence to CoCounsel | Thomson Reuters has acquired Noetica, a deals-data startup co-founded by ex-Wachtell lawyer Dan Wertman, to deepen CoCounsel’s transactional capabilities. Founded in 2022, Noetica tracks M&A and debt deal terms in real time, helping lawyers benchmark what’s “market.” TR plans to fold Noetica into CoCounsel so users can compare key terms, spot trends, and flag deal-level risk signals inside their workflow. The bet is clear: in legal AI, the edge is shifting from model demos to proprietary data — and who can deliver it where lawyers actually work.
Feb 11, 2026, Source: Non-billable


Will this be the Next Big Thing in A.I?
Legal Technology
Information Chaos: The Hidden Cost of Understanding Client Information
Over the past year, I’ve worked closely with numerous family law practices as design partners, helping them understand where time really goes and why certain inefficiencies persist even in well-run practices. One recurring theme continues to shape how I think about this work.
Attorneys walk me through their document management systems, which are often sophisticated, well-organized, with smart search and automatic classification. The systems reflect best practices: clean folder structures, thoughtful naming conventions, OCR on everything, and automatic routing of intake documents.
Then I ask them to walk me through preparing for a settlement conference scheduled for the next day.
Most attorneys commence this process by opening the relevant client file and begin what’s termed creating the “complete picture” or “whole story”. As an example, one attorney pulled up financial documents to verify the current asset situation, cross-referencing bank statements across multiple accounts. Checked notes from her client meeting regarding offshore accounts. Checked tax returns against stated income on disclosure forms. She reviewed email chains to confirm what the client had said about equity compensation. Remembered taking notes during a meeting about the developments following the email correspondence, and checked her notes again. She scanned through the client and their partner’s communication history to reconstruct the timeline of custody discussions. She verified dates on property documents against the marriage date.
On average, four hours later, she would have what she needed: a comprehensive understanding of her client’s situation that would allow her to negotiate effectively.

Future Contracts Miami returns this February, bringing the contract innovation conversation back to Miami.
To attend, secure your ticket: https://www.futurecontractsmiami.com/event-details/future-contracts-miami-2026
A special offer for vendors at 10% using the code: LWFC-M1
📅 February 25, 2026
📍 Newman Alumni Centre, University of Miami
The event will focus on the future of contracting, with sessions examining legal technology, automation, AI, and new approaches to contract operations across in-house and private practice teams.


The AI Regulation Tracker offers a clickable global map that gives you instant snapshots of how each country is handling AI laws, along with the most recent policy developments.
The most recent developments from the past week:
📋 15 February 2026 | India and Kazakhstan elevate AI cooperation to strategic level: It is reported that India and Kazakhstan have elevated their cooperation in AI to a strategic level, with India set to host the AI Summit in New Delhi on 19-20 February 2026. The summit aims to bring together global leaders to discuss ethical and inclusive technological development. Kazakhstan has integrated AI into its higher education curriculum and continues to strengthen its innovation ecosystem, including initiatives like the Alem AI platform. India's expanding AI policy framework and dynamic innovation sector complement Kazakhstan's efforts. Bilateral cooperation is further supported by the Indian Technical and Economic Cooperation (ITEC) program, offering over 100 annual training slots for Kazakh professionals in AI and digital technologies. Additionally, India has provided Kazakhstan with the MISSO robotic surgical system and facilitated training for local medical specialists.
📋 14 February 2026 | Canada and Germany sign AI joint declaration and launch Sovereign Technology Alliance: Canada's Minister of Artificial Intelligence and Digital Innovation, and Germany's Minister for Digital Transformation and Government Modernization have signed a Joint Declaration of Intent on AI during the Munich Security Conference. This agreement establishes a framework to enhance bilateral cooperation in AI, focusing on secure compute infrastructure, AI research and commercialization, and talent development. Canada and Germany also launched the Sovereign Technology Alliance to strengthen collaboration on advanced technologies, aiming to bolster sovereign AI capabilities and reduce strategic technology dependencies.
📋 13 February 2026 | BRICS nations develop unified approaches for AI regulation: It is reported that the BRICS nations are actively collaborating to develop unified approaches for AI regulation, emphasizing responsible and inclusive development. Russian Foreign Minister Sergey Lavrov highlighted the significance of the upcoming AI summit in India, scheduled for 16 to 20 February 2026, noting that AI regulations are in the early stages of definition and will address security-related aspects. Lavrov affirmed Moscow's support for India's presidency program, underscoring the importance of international coordination in establishing common standards to tackle global challenges such as pandemics, food security, and climate change.


AI Tools that will supercharge your productivity
🆕 Klea - AI-powered legal entity management. Fast track legal compliance.
🆕 Protégé - Seamlessly integrated into Lexis+ AI, Protégé securely analyses complex legal matters with smarter, faster insights.
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Want more Legal AI Tools? Check out our
Top AI Tools for Legal Professionals


The weekly ChatGPT prompt that will boost your productivity
Why it helps: Converts a long contract into a client-ready brief with the key terms, risks, and dates.
Paste the contract and state who you represent and the jurisdiction. Return:
A 150–200 word plain-English summary in full sentences;
The 5 terms that matter most (payment, term/renewal, termination, liability, IP/confidentiality);
Top 3 risks and a suggested next step for each (accept / clarify / renegotiate);
Any dates to calendar (renewal notice, payment dates, deliverables).

Collecting Data to make Artificial Intelligence Safer
The Responsible AI Collaborative is a not‑for‑profit organization working to present real‑world AI harms through its Artificial Intelligence Incident Database.
View the latest reported incidents below:
⚠️ 2025-07-15 | CISA Acting Director Reportedly Uploaded Sensitive Government Documents to Public ChatGPT Instance | View Incident
⚠️ 2026-01-31 | Moltbook Database Exposure Allegedly Revealed Users' Private Communications and API Authentication Tokens | View Incident
⚠️ 2026-02-07 | Purportedly AI-Generated Image Reportedly Circulated Ahead of Thai Election Depicting PM Anutin Charnvirakul D | View Incident


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