The company is evaluating domain-specific AI tools for key tasks.
“The big one for us is Relativity for e-discovery, and we have other things like Luminance for due diligence tasks, which have a pay-per-transaction model, so the client is billed directly,” McLaren says.
“We introduced Microsoft Copilot about six months ago for what we call general assistance. The value of Copilot is that we are a Microsoft vessel, connected to our setup. Copilot is used to help draft emails and find specific communications and files. That integration is very important.”
Russell McVeigh is trialling general law-specific support tools, including the US-based tools Harvey, Coke and Thomson Reuters Co-Counsel.
McLaren said it was important to engage with clients and gain buy-in when using AI tools, saying: “This is a large investment, with great potential but also risks, so it requires proper governance and training. We have worked over time to ensure this implementation and launch is done correctly.”
Russell McVeigh's cautious approach stems from his understanding of reputational risk. McLaren points to the recent Deloitte Australia case where a government report contained AI illusions and errors.
“We don't have that luxury. Our reputation comes first,” he says. Rather than simply providing a user manual, Russell McVeigh educates his staff on how generative AI actually works, what causes hallucinations, and how to create effective prompts and proper validation processes.
There is great potential, but there are also risks. We have taken the time to ensure this implementation and release is done correctly.
“It’s not just, ‘Here’s the tool, here’s the manual.’ It’s educating employees on how the technology works so they understand what hallucinations are and what they can do to minimize their risks.” A pilot group representing a variety of practice groups is testing the tool ahead of wider rollout, with announcements coming soon about a major law-specific AI platform.
Russell McVeigh's focus on reputation protection extends to other aspects of risk management. McLaren says that in his 15 years working in the legal field, the risk and compliance landscape has become significantly more complex. The company recently created its first general counsel-style role to address these issues.
“We needed a senior person who was concerned about risk on a daily basis,” he says. “Partners naturally focus on client issues and the company's own risks take a backseat.”
McLaren recognizes cybersecurity as a significant risk. Deploying the right technology is only part of the solution. “Employee cybersecurity awareness is critical. Employees need to understand the consequences of spotting phishing or clicking on the wrong link.”
The company conducts monthly cybersecurity training and requires its completion. Staff need to have up-to-date information to be eligible for raises and bonuses. McLaren cited the HWL Ebsworth hacking incident in Australia as a warning. “The CEO said it was devastating in terms of disruption and rebuilding customer trust. We can't eliminate risk, but we can minimize it.”
Russell McVeagh recently established a base in Queenstown and currently has an office of 15 people. This expansion was made possible through conversations with founding partner Tony Sycamore and reflects the strong economic performance of the Central Lakes region.
“The South Island is economically superior to the North Island and the Central Lakes region is one of the best performing regions in the country,” McLaren says.
The firm is targeting a different clientele than Russell McVeigh's previous focus on large corporations and government. “There's quite a bit of wealth there. It's not just tourism anymore.”
He said the company had set high goals and had achieved its first year targets despite recently adding partner Sam Nelson to strengthen its Queenstown capabilities.
McLaren officially took over as CEO on December 1, after serving as CFO and COO for six years alongside his predecessor Joe Avenel.
Russell McVeigh operates differently than many law firms, which tend to be run by partners, and has a team of professionals who provide management expertise. Professional CEOs are relatively rare.
“I'm involved in the business day-to-day with all of our shareholders. There may be a high level of scrutiny, but they're involved in decision-making,” he says.
Big decisions like long-term leases and five-year strategies require a partnership vote. “It’s a consulting model where we do the background work and then work with partners and managers to do the big work.”
McLaren is building on the cultural change led by Mr Avenel following Dame Margaret Bazeley's report seven years ago. The company embeds respect as a core value and recently developed its 2030 strategy with this partnership.
“We are doubling down on our diversity and inclusion goals. Women are underrepresented in our partnerships and we want to get that to 40%. We all agree that this is very important.”
She said the company has built a strong pipeline of women ready for partnerships in recent years.
Russell McVeigh has also introduced policies focused on sustainable work-life balance. Junior employees who work more than a certain number of hours in a two-week period are required to take immediate leave. “It is important to understand the rise and fall of private practices, while also ensuring that staff are well cared for and have adequate support.”
Under Avenel's leadership, the company has strengthened commercially despite difficult circumstances. McLaren said Russell McVeigh's litigation practice had a strong track record in major class actions, but the Natural Hazards Commission (formerly the Earthquake Commission) remained an important client.
Private equity activity has slowed recently, but McLaren expects it to increase. “When the economy is struggling, private equity tends to put the situation aside and focus on managing portfolio businesses rather than making new investments.”
The company has completed major transactions including the sale of Fonterra's retail business. Partners from the construction and banking industries also joined, and the new hires brought expertise in major infrastructure projects. This places Russell McVeigh in what McLaren sees as a $200 billion infrastructure pipeline that will require foreign investment and public-private partnerships.
Russell McVay is heraldDynamic Business Reports
