Insight
Pereyra: Client conflict rules mean law firms need multiple AI providers
“Most of these law firms and enterprises Can't rely on a single lab provider. So like there's a big risk if you're a law firm that if you just use Anthropic or you just use OpenAI you run into conflict risk. So imagine you're using only Anthropics models as a l…”
Prediction Not checkable as stated
Pereyra: AI Pricing Will Likely Return to Subscription Models From Tokens
“Buying off tokens is insanely complicated. It'll probably at some point go back to something like subscription because it's hard to like forecast these things.”
Prediction Not checkable as stated
Pereyra: Token billing will spawn an optimization ecosystem to counter model incentives
“I think you're going to start seeing things like this for token billing, where there's going to become this whole ecosystem of like, how do you optimize around this? Because you kind of have these weird misaligned incentives from the model providers, right? Be…”
Insight
Pereyra: Big Law work can be objectively quantified and unit-tested
“And I think there's a bit of a misconception that, oh, legal is subjective, so you can't do this. And I think the thing for especially big law is a lot of the work you can actually quantify, and this is what senior associates and partners are doing when their …”
Disclosure
Harvey plans to open-source general AI and monetize private enterprise infrastructure
“We think of our strategy as we want to open source the general stuff and work with all of the providers to make these models as good as possible at general legal. And then we want to build infrastructure for these law firms and enterprises that help them own t…”
Assertion Not checkable as stated
Pereyra: Harvey is moving traffic to open-source models due to closed-model costs
“There's customers like us, where we do need to move some of our traffic to open source models because it's just becoming super expensive to serve like the largest closed frontier model.”
Insight
Pereyra: The billable hour enables standardized pricing of complex work at scale
“And I think something people don't appreciate about the billable hour and why it's such a good mechanism is, It lets you price incredibly complex work at massive scale in a way that the entire industry can agree on, right?”
Opinion
Pereyra: AI research culture has completely abandoned open publishing
“That has completely changed in the sense, like, no one really publishes what they're doing anymore, and so it is harder to keep track of, like, the research breakthroughs and what's going on.”
Assertion Supported
Pereyra: No Single AI Model Wins Across All Legal Tasks
“What we've seen is actually every different model is good at something different. And so with the initial results we saw, Anthropics models are quite strong, but there's areas where a 5.5 is better. There's some areas where open source is better.”
Insight
Pereyra: Model Selection Is Shifting to Lowest Cost per Task
“Increasingly, it's not just which model is the best. It's which model can solve the task at the lowest price point, because as these models get better, there's kind of intelligent saturation where it's like, okay, for some simple tasks, I actually want to know…”
Assertion Not checkable as stated
Pereyra: Harvey queries cost up to $20 for drafts, $20k for reviews
“We have simple like assistant type queries where you say, you know, draft me a document that a single query can cost 20 dollars. We have like a review product where you can upload a 100,000 contracts and ask the models to review them, and some of those can cos…”
Opinion
Pereyra: Legal AI reached an adoption inflection point in late 2023/early 2024
“I think we're just starting to see in the past six months that inflection for legal where the models can now generate entire documents and they're starting to work in a way where Most lawyers who aren't using this technology just for fun, they're like, this ne…”
Assertion Not checkable as stated
Pereyra: Harvey Is Likely the Largest Embeddings Consumer for Some AI Labs
“I think for some of the labs, we are like the largest consumer of embeddings.”
Insight
Pereyra: Vertical AI Does Not Need Trillion-Parameter Models for Narrow Tasks
“A lot of these like very large frontier models are large because they're good at everything. And so I think a lot of the opportunity for these like specific verticals will be, okay, I probably don't need a trillion parameters if I just need the system to be go…”
Prediction Not checkable as stated
Pereyra: Competition among frontier and open-source models will check AI pricing
“And so I think the same thing will happen with the model providers, where it's like, if you look at Opus 4.7 and 5.5, Opus 4.7 is three times more expensive than 5.5, but it's, you know, 10 or 20% more performant. But like, these are going to cause pressure on…”
Disclosure
Harvey is building a taxonomy of Big Law tasks to benchmark agents
“So a lot of what we're building is essentially this taxonomy of here's all the tasks that a law firm would do, and here's all the subtasks that associates would do, and how partners or senior associates would grade that work.”
Assertion Not checkable as stated
Pereyra: Google Brain operated on a bottoms-up, researcher-driven model in 2016-2017
“And so when I was at Brain, it was very bottoms up. It was, I mean, both had some of the smartest AI researchers in the world, but Brain, the approach was, you know, let's get all these smart people, give them a bunch of compute, and then kind of let them do t…”
Assertion Not checkable as stated
Pereyra: DeepMind used a top-down 'tech tree' approach to reach AGI
“And then DeepMind was much more top down where Demis just had this vision of, okay, we're going to create AGI. Here's all the things that I think are required. And so they kind of had this tech tree of how they were going to do it. And then let's have all thes…”
Disclosure
Pereyra: Harvey models its vertical AI strategy on DeepMind's top-down approach
“And I think our approach is a bit more inspired by the DeepMind one, just because I think because we're in a vertical, the end goal is very clear.”
Insight
Pereyra: Inter-firm competition keeps law firm billable hour pricing in check
“Okay, the billable hour creates some pricing misalignment, but the fact that these law firms need to compete with every other law firm means that that's kept in check. And so it's like, this actually converges to roughly the right pricing.”
Disclosure
Pereyra: Harvey will publish research with labs and open-source models
“We are going to start publishing some of our research that we're doing with the labs or the other providers and open sourcing more models, more of the work we're doing.”