The AI Revolution: How Thomson Reuters is Embracing Change
When OpenAI introduced its groundbreaking GPT-3 model in the summer of 2020, a wave of excitement washed over the tech world—and it didn’t escape the notice of David Wong, the Chief Product Officer at Thomson Reuters. At that time, he had just stepped into his role at the company, and conversations among executives quickly pivoted to a pressing question: “Is this our Kodak moment?” This phrase evokes the rise and fall of Kodak, which missed the digital imaging boat. For Wong and his team, it was clear that adapting to this AI breakthrough was crucial for maintaining relevance in an evolving industry.
From Doubt to Discovery
Thomson Reuters wasn’t a stranger to AI; they had invested in it for years. Wong’s job was to weave AI into the company’s fabric strategically. Initially, the team put GPT-3 to the test against their flagship legal research tool, Westlaw. Unfortunately, the results were far from impressive. Wong shared, "It failed miserably, actually, at legal research." But the story didn’t end there. When a more refined model, GPT-3.5, came along two years later, and then the even more capable GPT-4, it became clear: "The F student that we saw in 2020 graduated to a C-minus student with GPT-3.5 and then to a B or B-plus student with GPT-4," Wong explained. They could finally envision the potential of this technology for their clients.
By the spring of 2023, the urgency grew. "We realized at that point that this technology was too powerful not to use," Wong recalled, confidently predicting that within three to five years, every professional would have a generative AI assistant by their side.
The AI Boom
The landscape of AI technology has transformed dramatically, with investments soaring into the hundreds of billions. This “AI mania” has sparked both excitement and unease, as businesses grapple with what these advancements might mean for the economy and workforce. In Wong’s eyes, Thomson Reuters faced a pivotal moment. Current AI models excel at two primary functions: retrieving information and generating written content—two capabilities that align perfectly with their diverse range of products.
Thomson Reuters generates a significant portion of its $6.8 billion annual revenue through software that helps professionals sift through mountains of data in sectors like law, corporate governance, and tax accounting. "We basically have search engines on top of databases, and so there was incredible relevance to the offering that we have," Wong elaborated, highlighting how timely their technological innovations have become.
Facing Challenges with Optimism
Despite the clear benefits, Thomson Reuters found that clients remained cautious. Recent surveys indicate that 77% of professionals in the legal and accounting fields expect AI to transform their roles significantly within five years. Yet, concerns linger about accuracy, data security, and how advancements might upend traditional business models—particularly in law firms where billable hours are the backbone of revenue.
Wong noted, "We’re seeing a very pragmatic discussion happening right now because people have gotten away from the theoretical." Most of their clients who tried AI tools recognize their importance but are now focused on implementing these tools safely and effectively.
Thomson Reuters has committed to investing $100 million annually to enhance their AI capabilities—a figure that has already been exceeded as they ramp up development. With a more than two-year transformation plan behind them that moved much of their content to the cloud, they’ve enhanced their ability to innovate quickly.
Rapid Development and Future Endeavors
In a remarkable turnaround, it took just eight weeks to create a proof of concept for an AI-assisted tool within their Westlaw Precision product. Wong was pleasantly surprised by the speed and efficiency of their process: “Our very first iterations were shockingly close to customer acceptance.” The product officially launched in November, following just eight months of intensive work.
Looking ahead, Thomson Reuters is intensifying its focus on its generative AI assistant, CoCounsel. The newly updated version is reportedly three times faster than its predecessor and is set to expand into other sectors, including tax, while tackling more complex tasks that require nuanced decision-making.
However, Wong recognizes that maintaining a competitive edge will require more than just being present in the AI space. "We’ve heard a bit of exhaustion," he admits, noting that professionals are keen to reduce the number of AI tools they adopt. With many players entering the arena, he is confident that Thomson Reuters’ head start in legal AI research is significant, but he knows the competition is heating up in the broader AI landscape.
Conclusion
In conclusion, as Thomson Reuters navigates the fast-evolving world of artificial intelligence, its commitment to leveraging technology for its clients sets a promising precedent. The journey from doubt to discovery has been swift, and the company is poised to shape the future of legal research and professional services through AI advancements.
The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.
