ALB JULY 2024 (ASIA EDITION)

3 ASIAN LEGAL BUSINESS – JULY 2024 WWW.LEGALBUSINESSONLINE.COM THE BRIEFING: YOUR MONTHLY NEED-TO-KNOW LONDON LAW FIRMS LOCKED IN NQ SALARY BATTLE 1 IN THE NEWS DLA Piper has represented Timor-Leste pro bono in securing a crucial ITLOS climate ruling. The decision affirms governments’ duty to regulate greenhouse gas emissions and obliges developed nations to support developing states through various measures. “THEY’LL BE SORRY.” QUOTE UNQUOTE Top Australian law firms are questioning the usefulness of artificial intelligence in legal practice, according to a recent report by the Australian Financial Review. A benchmark study conducted by Allens, one of Australia’s leading law firms, found that AI models currently available are inconsistent and prone to “hallucinations,” failing to demonstrate basic competencies expected of a junior lawyer. The study tested four large language models on 30 legal questions across 10 practice areas. Only one model, OpenAI’s GPT-4, barely passed with a score of 5.27 out of 10. Herbert Smith Freehills’ emerging technology head, Susannah Wilkinson, told the AFR that AI is “not good for understanding nuances in context, it’s not good for understanding a client’s risk appetite, and it’s not good for the broader legal reasoning.” Miriam Stiel, Allens’ intellectual property practice lead, added. Number of companies that listed on the SGX in H1 2024, making Singapore the worstperforming market in Southeast Asia for IPOs. Malaysia came first with 21 companies. AUSSIE LAW FIRMS UNIMPRESSED BY AI IMPACT: REPORT Several top law firms in London have announced salary increases for newly qualified lawyers, intensifying the ongoing competition for junior talent in the legal sector. Herbert Smith Freehills (HSF) has raised its newly qualified (NQ) lawyer pay to 135,000 pounds ($170,000), a 12.5 percent increase from its previous 120,000 pounds. The firm will also boost trainee salaries from September. DLA Piper and HFW have also announced pay hikes, with NQ salaries rising to 110,000 pounds and 100,000 pounds, respectively. These moves come as UK-based firms strive to compete with their U.S. counterparts, who often offer higher compensation packages. UK firms have also had to wrestle with issues such as Brexit and a lower value of the pound versus the dollar. As a result, the five Magic Circle firms have lost their place at the top of the London legal market they held a decade ago. The salary war shows no signs of abating, with U.S. firm Paul Weiss set to offer £180,000 to NQs in its new UK training programme. Percentage of Yale law students who picked law firm culture as a top consideration when deciding which firms to join. Only 56 percent said compensation. Former Hong Kong Secretary for Justice Teresa Cheng tells the South China Morning Post that foreign law firms leaving the city will regret their decision. Arcadia Finance, a new litigation finance firm that launched recently, has secured access to over $100 million in capital to fund lawsuits. It will invest broadly in U.S.-based commercial and patent litigation, as well as U.S. and international arbitration. IN THE NEWS

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