
founder/ceo @lawtrades. the legal network for the AI economy
nyc
Joined April 2009
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all of this is already normal in software, where an agent has a PR up before anyone's even read the ticket.
coding agents got there first because engineers do their homework in public and get graded by tests in seconds. lawyers do theirs in private and get graded by opposing counsel years later, so models have read the law but barely watched anyone practice it.
biglaw invented RLHF a century ago and called it the cravath system. associate drafts, partner redlines, repeat for eight years, except the reasoning behind every redline stays in the partner's head.
getting that reasoning out of partners' heads and into the training loop is the real bottleneck for legal AI, and it's why demand for lawyers to train models is the highest i've seen in 10 years
In the past 12 months, BigLaw has progressed from "AI = hallucinating chatbots" to partners dumping a ton of legal research on an associate with expectations that the work can be done much faster by leveraging AI.
Even with all this progress, I feel that we're still just scratching the surface. When I get new data room access, I want to have my agents preparing a diligence report and a list of required regulatory approvals before I even open the e-mail. When I get comments from a client on a document, I want my agents to work on revisions in the background before I even ask them to. I want an agent proactively drafting client alerts for me based on new regulatory developments (before I'm even aware of these developments). All of these use cases are possible with today's AI, but it takes a while for conservative law firms to catch up to the cutting edge!
running a marketplace is hard without a balance sheet because the client needs a lawyer by monday and pays you in 60 days. but that lawyer gets paid every two weeks (lawyers have rent, clients have procurement portals). and if one timesheet gets disputed the whole invoice sits, so you're floating payroll for people who aren't on your payroll.
that 60-day gap where you're profitable on paper and broke on payday is the part nobody puts in the deck, but it's also the moat, because lawyers stay wherever the money shows up on time. every marketplace is a bank with a matching feature, and the matching was never the hard part.
an AI data company can have recurring revenue and still start from zero on every order.
imagine a model flags a risky contract clause but misses an exception in an amendment. lawyers correct it, the lab gets useful data, and it orders another batch.
on a revenue chart, that's a great account, but what got easier for the vendor?
a vendor that's learning knows which lawyers catch exceptions like that, can tell a missing document from bad legal reasoning, and has a rubric the next group of lawyers can actually use. a vendor that isn't learning rebuilds recruiting, training, and QC on every order.
i'd want to see gross margin on the second order, accounting for how hard the work is, and, more than the number, the reason it moved.
a new model may need entirely new examples, and the lab's documents stay the lab's, so the learning has to live in the process: choosing experts, designing tasks, and getting work accepted on the first pass.
after the experts get paid and the lab gets its data, what does the vendor know that it didn't before? it's the question i'd ask any expert marketplace, ours included.
repeat demand can fund a business for years. i'd want to know whether each order makes the company better at the next one.
legal AI runs on models, software and judgment.
- the companies building the leading models are worth trillions.
- the leading legal AI software companies are worth billions.
- @lawtrades is the network of lawyers who supply that judgment, and it's valued at a fraction of either.
the market is pricing the tools and underpricing the people who know when the answer is right.
judgment is the one input models can't generate and apps can't ship without.
every lawyer has gotten a draft back with "cite?" in the margin. today we're launching reasoning by @Lawtrades, where the draft comes from AI and lawyers get paid for the markup.
the people whose judgment makes AI valuable should share in the value it creates.
3 for 13 ✅
The only businesses left to build:
1. AI native service firms
2. Offline businesses
3. Distribution (media, community, audience)
4. Proprietary datasets
5. Domain specific harnesses (the agent that runs one industry's work)
6. Robotics and physical AI
7. Physical products with a fan following
8. Compute and energy
9. Health, longevity, and care
10. Marketplaces and social networks (for people and agents)
11. Real assets (property, equipment, land, infrastructure)
12. Vertical agents
13. Security
Raad retweeted
Miss our group chat with @R44D from @Lawtrades last week?
This was a great chat where we did a deep dive into Lawtrades as a marketplace for flexible legal talent, how they're leveraging AI, & more.
The recording is now live!
everythingmarketplaces.com/c…







