What does it mean to license your firm's records to an AI company?

For decades, a firm's closed files have had one job after the matter ends: sit in storage in case anyone needs them. That is starting to change. Companies that build artificial intelligence now look for real-world professional writing, and some will pay established businesses to license a copy of it.

If you have never heard of this, you are not alone. Here is how it works, in plain terms.

Why AI companies want business records

AI systems learn from examples. Public websites and books only go so far. To help their systems handle real professional work, such as drafting a memo, following a procedure or managing a project, developers look for the kind of documents that firms produce every day: internal memos, templates, checklists, procedures, project histories and similar records.

Those documents are valuable precisely because they are real. They show how experienced professionals actually write, reason and get work done.

What "licensing a copy" means

Licensing is not selling your files. In the programs we work with, a buyer licenses a copy of records your firm approves. Your originals stay with your firm, and you keep using them as you always have.

Buyers say they remove personal and sensitive information from the data they receive. Even so, your firm decides what to share, and you can review any agreement with your own counsel before signing.

What buyers usually look for

Each buyer sets its own requirements, and they change over time. In general, buyers look for:

• An established business with a minimum number of employees. Some buyers accept law firms with as few as 10 people; others look for 30 or more.
• A location in specific countries, often the United States, Canada, the United Kingdom or Australia.
• Records that are mostly in English.
• Years of genuine operating documents, rather than a handful of files.

How the process usually works

1. A conversation. You learn how licensing works and whether your firm is likely to meet a buyer's basic requirements.
2. An application. Your firm applies directly to the buyer and describes the kinds of records it holds.
3. The buyer's review. The buyer evaluates your firm and, if it sees a fit, discusses terms with you directly.
4. Your decision. Nothing is shared unless your firm agrees to the terms. You can say no at any point.

What it is worth

Honestly, it depends. Value is set by each buyer's review of your firm and its records, and no amount or offer is guaranteed. Anyone who promises you a specific figure before a buyer has reviewed your firm is guessing.

The right first step is not a decision. It is simply finding out whether your firm qualifies.

This article is general information, not legal, tax or privacy advice. Buyer requirements change over time; check each buyer's current terms, and consult your own counsel before sharing any records.