Orbital Witness, a law-tech company specialising in generative AI-driven title checking for property transactions, has introduced a groundbreaking insurance-backed accuracy guarantee for its product. This innovation is the first of its kind globally and aims to mitigate compliance concerns for law firms using the technology.
Insurance Coverage and Compliance
First Title Insurance, a leading insurer, is providing the coverage for Orbital Witness’s residential property product. This insurance ensures that in case of an error leading to a compensation claim, the law firm does not have to rely on its own professional indemnity insurance. Most of Orbital Witness’s residential property clients are regulated by the Council for Licensed Conveyancers, and the policy meets the council’s minimum cover requirement of £2m. This optional insurance add-on costs less than £10 per policy.
The Orbital Witness system efficiently checks title documentation, identifying potential issues such as short leases, and generates a report within about a minute. Co-founder Ed Boulle emphasised that First Title conducted extensive scrutiny of the technology before agreeing to underwrite it and would continue to monitor it regularly. This rigorous evaluation helps law firms satisfy regulatory and insurance requirements for using new technology without incurring additional risks for their clients.
Addressing AI Compliance Challenges
Boulle noted that many law firms lack the in-house expertise to evaluate and monitor generative AI products thoroughly. He highlighted that insurance not only offers protection against potential losses but also alleviates the compliance burden. First Title’s ongoing testing and monitoring of the AI output provide a level of due diligence that individual law firms cannot achieve on their own.
Orbital Witness plans to extend this insurance offering to commercial property transactions, which will require larger coverage amounts. The company is also looking to expand its AI technology to include searches, TA6 forms, and other documents.
Currently, over 4,000 lawyers and property professionals, including teams from all five of the Magic Circle law firms and the UK’s largest conveyancing and remortgage businesses, use Orbital Witness’s technology daily. Boulle predicted that integrating insurance into AI products would become a standard practice, ensuring that AI usage is financially accountable and compliant.
Broader AI Adoption in Legal Services
In related AI developments, Ashurst has globally rolled out the legal AI platform Harvey to over 4,000 lawyers and business services staff. Following an extensive trial involving 525 users across 23 offices and over 4,000 queries, Ashurst published a report highlighting the initial value of AI in law firms, particularly in accelerating the creation of first drafts.
This trend underscores the growing importance of AI in the legal sector and the need for robust frameworks to ensure its safe and effective use. As Orbital Witness and Ashurst demonstrate, integrating AI with comprehensive insurance and compliance measures can help law firms harness the benefits of AI while minimising risks.
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