Orbital Witness, a UK-based legal tech startup, has announced a pioneering partnership with First Title Insurance, a First American Financial Corporation company.
The collaboration is a global first and offers AI Reliance, an insurance-backed accuracy guarantee for legaltech AI products.
This marks a major milestone for the use of generative AI in professional services such as law and property conveyancing.
Founded in 2018, Orbital Witness builds AI-powered software that accelerates the legal due diligence and client reporting process and reduces the risk of human error in over 60,000 property transactions each year, from private home sales to multi-million pound commercial property transactions.
Launched in 2018, the company’s real estate-specific technology is now used by more than 4,000 professionals in 60,000 real estate transactions per year, streamlining the traditionally paper-heavy due diligence process.
Current clients include most of the top real estate teams such as Linklaters, Herbert Smith Freehills and Clifford Chance, as well as a range of global companies that own, occupy or advise real estate, including PwC, Zurich, E.ON, Marks & Spencer and Tesla.
AI guaranteed
After months of exhaustive due diligence and testing, First Title will underwrite the output of Orbital Witness’ generative AI product, meaning that if an error occurs and a claim arises, First Title’s insurance will cover it.
First Title will initially underwrite AI Reliance insurance for law firm clients of Orbital Residential, Orbital Witness’ residential real estate product, but will not require the law firms to file professional indemnity claims.
The quality, accuracy and robustness of Orbital Witness’ AI technology backed by First Title will enable law firms to fully leverage generative AI for typically repetitive and time-consuming tasks, increasing efficiency while reducing human error and costs. Under the terms of the partnership, First Title will provide a substantial level of insurance coverage comparable to the level of professional liability insurance that law firms are required to hold under regulations.
Set against the broader backdrop of growing regulatory interest in AI, the move also sets a precedent for how AI products with insurance capabilities can help companies demonstrate the standards expected by industry regulators.
“Orbital Witness is committed to providing a safe and secure platform for our customers,” said Ed Boulle, co-founder and chief strategy officer at Orbital Witness.
“Law is a highly regulated field. Law firms are ultimately responsible for the services they provide to their clients.”
When adopting new technologies, companies need to convince regulators (and their own insurers) that the new technology is safe to use and does not pose additional risks to customers.
In this respect, generative AI is no different from any other technology.”
However, most companies lack the in-house expertise required to thoroughly evaluate and continually monitor generative AI products. Insurance can help ease the compliance burden as well as provide downside protection.
First Title will continue to test and monitor Orbital Witness’ generative AI output on an ongoing basis.”
“First Title is excited to partner with NVIDIA to bring its NVIDIA AR platform to the market,” said Kevin Dick, CEO of First Title.
“AI is increasingly being used to speed up real estate transactions and reduce the cost, and law firms and conveyancing businesses need to have more confidence that the AI technology they employ is safe to use, trustworthy and compliant with regulations.
First Title’s innovative insurance policy is the first of its kind and will revolutionize the professional services industry, setting a benchmark for other AI providers to aspire to.”
Orbital Witness is registered with the Financial Conduct Authority to sell insurance on behalf of First Title. Boulle concludes:
“We may be the first AI provider to integrate insurance into our products, but we won’t be the last. Soon, insurance will form part of a framework where companies are expected to use AI in an assured, financially accountable and compliant way – and indeed it should.”
In 2024, Orbital Witness won “Legal AI Supplier of the Year” at the Modern Law Awards and “Conveyancing Collaborators of the Year” at the British Conveyancing Awards.
Main image: Orbital Witness co-founders Will Pierce and Ed Buhl. Photo: Uncredited.
