Welcome to the Collaboration Economy: How AI Is Supercharging the Customer Co-Development Model and What That Means for the Future of Technology Services

Steve Assie, general manager, Global Large Law Firms at Thomson Reuters, co-authored this article.

There has been no shortage of speculation about the long-term impact of AI on the enterprise software industry.

Because new AI agents have made it possible to write code, automate workflows, and create custom applications so quickly and inexpensively, some commentators and analysts have suggested that it could give rise to a new do-it-yourself software model. According to this logic, instead of buying specialized software, companies will vibe code their way to new solutions that address their specific needs.

While that idea may make for some salacious headlines, it ignores some of the fundamental tenets of software development and dramatically underestimates the massive new opportunities AI is creating for professional services software firms and their clients.

We’ve had a front-row seat for this phenomenon in our work developing legal software, which has been a flash point for AI-driven innovation. In the span of just three years, we’ve seen the rise of AI-native law firms that promise to deliver legal services at a radically lower cost by replacing junior associates with bots, widespread debate on the future of billable hour-based business model, and some high-profile blunders when law firms used AI without the proper guardrails.

Along the way, we’ve also learned some critical lessons about how AI will change the way software companies and their clients work together.

Technology and Context Matter for Specialized AI Tools

The first, and most important lesson anyone developing new solutions with AI needs to understand is that the strongest large language models (LLMs) or agent frameworks in the world are only as good as the data and expertise used to build and train them. That means a specialized solution designed for complex legal work needs detailed input from legal and technology experts—each of whom will play equally important roles in making sure the detailed use case is addressed accurately, and that the technology is running optimally. One without the other is a recipe for disaster.

In our specific example, teams from the law firm Sterne, Kessler, Goldstein & Fox and Thomson Reuters worked together to develop an AI-powered solution to help establish Section 101 patent eligibility—a critical legal test used to determine whether a utility patent meets the necessary criteria for an intellectual property defense. The challenge is complicated by the fact that the framework for determining patent eligibility lacks precise definitions, leaving room for interpretation, nuance, and overlooked details.

This, of course, is precisely the type of area where AI excels. Sterne Kessler knew AI could help them improve their Section 101 workflow and even went as far as building their own prototype internally with off-the-shelf AI tools. While that first-generation tool served as a key proof of concept, it did not provide the scalability or workflow integration needed for firm-wide deployment. That’s where the team leaned on Thomson Reuters, which sent a team of forward-deployed engineers to work in tandem with the firm to build a professional-grade solution.

Shared Development, Shared Risk, Shared Revenue

This is where things get interesting. While the idea of a technology firm collaborating with a client to build a new custom solution is not new, the speed, scale, and commercial implications of this approach in an AI-enabled environment set the stage for an entirely new way of thinking about the relationship between technology vendors and clients.

When all was said and done, the finished solution was ready for prime time in a matter of months. Moreover, it was fully integrated into firm-wide workflows, constantly being fed real-time case law data and insights from Thomson Reuters and staffed with 24-hour tech support. This meant it was more than just a one-off tool Sterne Kessler could use to bolster its IP practice—it was a commercially-viable solution that could help the entire legal industry. And that changes everything.

Now, in addition to building a faster, more comprehensive Section 101 search capability, Sterne Kessler had a revenue-sharing agreement on a breakthrough piece of technology that could be marketed and sold throughout the industry. Meanwhile, Thomson Reuters introduced a co-development model that allows it to tap directly into its clients’ pain points to create a pipeline of new solutions built on its industry-leading AI and proprietary content.

Leveling Up Together

The example is just one of countless others unfolding across dozens of industries right now as the rapid-fire growth of AI inspires a new spirit of experimentation, innovation, and collaboration. While doomsdayers have suggested that fever-pitch of new technology development will eventually disintermediate professional services software firms, the opposite is true. Software companies are collaborating more frequently and more closely than ever with their clients to unlock new capabilities and new joint revenue streams that would never have been possible in the old days of traditional enterprise software development on planned release cycles.

AI is indeed catalyzing massive changes in the conventional methods of software development and sales, but that is an opportunity for software firms and their clients to reset the limits of what’s possible and reinvent new ways of working together to level up everyone’s game.

Reprinted with permission from the July 2, 2026 edition of the Legaltech News © 2026 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or [email protected].