The startup world is buzzing, AI headlines are everywhere, and GenAI is the hottest thing in legaltech since e-discovery. So when I heard that Harvey—a startup billing itself as “generative AI for professional services”—was chasing a $2 billion valuation with barely any known customers and a product no one seems to have touched, my eyebrows shot up. If that sounds a little… speculative, it should. It reminded me of another time I saw hype outpace substance: the dot-com bubble.

In this article, I unpack the parallels between today’s AI boom and the internet frenzy of the late ’90s. I look at what happens when funding outpaces fundamentals, and why legaltech buyers and investors should be paying close attention. Spoiler alert: not every GenAI startup is built to last, and some may collapse under the weight of their own inflated expectations.

What else is in this article?

• A walk down memory lane: what really caused the dot-com bust
• Why low interest rates and easy capital are fueling risky bets in GenAI
• How startups built on OpenAI’s models might be on shaky ground
• What legaltech buyers should ask before adopting new AI tools
• The hidden costs of relying on rapidly evolving foundational tech

(full article available on Legaltech News)