Thought Leadership

The Plaintiff bar is winning in ai

Published in Insurance Thought Leadership on March 10, 2024, this article by Taylor Smith and John Burge discusses the growing threat posed by the plaintiff bar’s rapid adoption of AI technology. The authors argue that the insurance defense industry, particularly in property and casualty (P&C) insurance, must act quickly to counter this advantage. With plaintiff attorneys leveraging AI to enhance negotiation strategies and drive up claim values, defense teams are at risk of falling behind.

Plaintiff Bar’s AI EdgE

Companies like EvenUp Law use AI to generate comprehensive demand packages, including liability estimates, damage assessments, and storytelling techniques, increasing claim values by 30%.

The plaintiff bar shares data effectively through collaborative databases, giving them better insights than the fragmented data systems of defense teams.

Challenges for the Defense Side

Data on the defense side is disorganized, with inconsistencies across firms and claims departments. This lack of structured data impairs their negotiation strength.

Plaintiff firms adopt AI quickly due to fewer IT barriers and incentives for efficiency, whereas defense firms face bureaucratic and IT challenges.

AI-Enabled Negotiation Tactics by Plaintiff Attorneys

AI helps plaintiff attorneys select favorable cases, predict outcomes based on specific insurance companies, and attract more investment in litigation, even for smaller cases.

This strategic use of AI strengthens the plaintiff bar’s position, creating an urgent need for the defense industry to catch up.

How AI Could Benefit the Defense Industry

  1. Risk analysis: AI can assess the risk of facing specific attorneys, venues, and case outcomes.

  2. Selling offers: AI can help defense teams present their offers more persuasively, similar to how demand packages are crafted by the plaintiff side.

  3. Stronger negotiations: AI tools can predict the opposing party’s walk-away number and assess the impact of legal costs, leading to more effective negotiation strategies.

Industry Urgency

Settlement costs are the largest expense for P&C insurers, yet most defense attorneys lack formal negotiation training.

With the plaintiff bar leveraging AI to gain negotiation advantages, the defense side must embrace AI tools to manage indemnity costs more effectively.

The rise of AI in the plaintiff bar is not just a trend, it’s a game-changer. Personal injury attorneys are leveraging technology to craft stronger cases, share data efficiently, and secure higher settlements, all while the defense industry struggles with fragmented systems and outdated processes. The message is clear: to stay competitive in this evolving landscape, the defense side must embrace AI-driven strategies.

It’s time for claims professionals and defense attorneys to rethink their approach, tapping into AI tools to better analyze risks, present offers persuasively, and negotiate with precision. The future of insurance litigation will be shaped by those who can adapt the fastest. The question now is not whether to use AI but how quickly the industry can catch up and integrate these tools into everyday practice. In a world where every advantage counts, the defense industry must move fast, or risk being left behind.