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Upsetting a traditional industry: exploring the unintended institutional change and entrepreneurship of artificial intelligence and legal-tech firms

In: Handbook of Services and Artificial Intelligence

Author

Listed:
  • Tale Skjølsvik
  • Frida Pemer

Abstract

Recent studies have argued that new digital technologies - and in particular artificial intelligence - threaten to disrupt industries offering highly complex, tailored, and knowledge-based services. However, empirical studies of how the infusion of new digital technologies in knowledge-based services may challenge existing institutional arrangements are still lacking. The current study sets out to fill this void by investigating how a highly institutionally embedded and conservative industry - the US legal service industry - changes as new legal-tech firms enter the market. Building on longitudinal archival studies and a framework of institutional change and entrepreneurship, we show how the US legal industry has moved through three phases and levels of change - work processes, organizational transformations, and ecosystems - and how each phase embeds different institutional logics and work. Based on our findings, we provide new insights into how proto-professional firms unwittingly can take on the role of institutional entrepreneurs and kick off a process of unintended institutional change.

Suggested Citation

  • Tale Skjølsvik & Frida Pemer, 2024. "Upsetting a traditional industry: exploring the unintended institutional change and entrepreneurship of artificial intelligence and legal-tech firms," Chapters, in: Ada Scupola & Jon Sundbo & Lars Fuglsang & Anders Henten (ed.), Handbook of Services and Artificial Intelligence, chapter 7, pages 98-117, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21983_7
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035301973.00014
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