Orbital Witness and First Title Insurance Partner on AI Reliance

Legaltech Startup Orbital Witness Partners with First Title Insurance for Groundbreaking AI Reliance Service

UK-based legaltech startup Orbital Witness has established a pioneering collaboration with First Title Insurance, a subsidiary of First American Financial Corporation. This partnership introduces AI Reliance, an insurance-backed accuracy guarantee for Orbital Witness's AI product, signaling a significant advancement in the adoption of generative AI in legal and conveyancing services. Since its launch in 2018, Orbital Witness has been utilizing AI to streamline legal due diligence and client reporting for over 60,000 property transactions annually, encompassing both residential and commercial deals. The technology is now being employed by over 4,000 professionals, including top law firms such as Linklaters and Clifford Chance, and major corporations like PwC and Tesla.

First Title has made a commitment to underwrite the output of Orbital Witness's Generative AI, providing insurance coverage that becomes effective in the event of errors leading to compensation claims. Initially, this insurance will cover Orbital Residential, the residential property product, enabling law firms to leverage AI for repetitive tasks without the necessity of invoking their professional indemnity insurance. This collaboration ensures the robustness, accuracy, and compliance of the AI technology, assisting firms in meeting regulatory standards and reducing costs and human errors.

Key Takeaways

• Orbital Witness has partnered with First Title Insurance to introduce AI Reliance, an insurance-backed accuracy guarantee for legaltech AI products.
• The startup uses AI to streamline legal due diligence in over 60,000 property transactions annually.
• First Title will underwrite AI Reliance policies for Orbital Witness's residential property product, reducing reliance on law firm indemnity insurance.
• This partnership sets a precedent for AI products to carry insurance, aiding firms in meeting regulatory standards.
• The integration of insurance into Orbital Witness's AI product is likely to become standard practice in the industry.

Analysis

The alliance between Orbital Witness and First Title Insurance brings forth AI Reliance, addressing the risks associated with AI in legal services. It tackles law firms' concerns regarding AI accuracy and compliance, diminishing their dependence on professional indemnity insurance. The underwriting of AI outputs by First Title signifies the emergence of insurance-backed AI, potentially establishing a new industry standard. In the short-term, law firms benefit from reduced costs and errors, while in the long-term, this integration could lead to broader AI insurance adoption, enhancing trust and regulatory compliance in AI-driven legal processes.

Did You Know?

• Generative AI: A subset of artificial intelligence that involves creating new content or data not based on pre-existing data. In the context of Orbital Witness, it refers to AI generating insights or reports for legal due diligence, potentially reducing human error and enhancing efficiency.
• AI Reliance: This denotes a novel concept where an insurance-backed accuracy guarantee is provided for AI outputs. If the AI makes an error leading to a compensation claim, the insurance will cover the costs, reducing the risk for law firms using AI in their operations.
• Underwriting AI Outputs: This refers to the process where an insurance company, such as First Title Insurance, assesses and accepts the risk of insuring the outputs of an AI system, a significant step in the integration of AI in high-stakes industries like legal services.