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Feb 17
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AVOID
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Momei Qu
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Qu notes that sectors with "structured data" like the legal space are "more prone to disruption with Large Language Models." Unlike construction (physical/vertical), legal work involves processing text/data—the exact capability where AI excels. This makes current legal tech incumbents highly vulnerable to displacement by cheaper AI agents. AVOID/SHORT Legal Tech. Regulatory moats protect incumbents longer than expected. |
Bloomberg Markets
Bloomberg Surveillance 2/17/2026
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Feb 15
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LONG
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David Autor
Professor of Economics, MIT
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"If that supporting work is automated by AI... you're happy... It makes your expertise more valuable, allows you to specialize." Autor specifically cites lawyers: "Those that are left get paid more because the high expertise part of what they do is even more valuable." The "surviving" high-end professionals will rely heavily on proprietary data and AI tools to eliminate grunt work (drafting contracts). Companies that control the legal data moats and the AI tools to process them (Thomson Reuters, RELX) become essential infrastructure for the high-margin professional services industry. Long the "arms dealers" of professional expertise who sell the tools that allow lawyers/accountants to charge more for strategy while doing less drafting. Open-source models (LLMs) becoming good enough to bypass specialized proprietary databases. |
Bloomberg Markets
Who will survive and thrive in the new AI era...
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