Explain in not too techy language, please, what is agentic AI, and actually why would this actually change its, change Lagora's and other tech's pricing models?

So there are a few factors at play here.

Basically, the subsidy period is ending.

Um, so for the past two, three years, many AI companies, and this goes beyond legal, um, they've effectively subsidized customers' usage.

You know, the VC funding was abundant.

We've seen that with Harvey, and we've seen that with Lagora, and the priority was winning those enterprise contracts and building market share.

But now the expectation will be to demonstrate sustainable gross margins and a credible path to profitability.

So Relativity, for example, already does consumption-based pricing, so it's not completely unheard of.

What does it mean both for Freshfields in terms of what it can offer clients, but also what it means for the wider market and, and wider AI adoption?

Well, if one thinks the Harvey and Lagora valuations are bonkers, you only have to look at OpenAI and Anthropic.

Anthropic is eyeing up reportedly a $1 trillion valuation, uh, as it stands currently, um, which in comparison, legal tech looks almost parochial.

[chuckles] Um, so whatever one thinks about Harvey or Lagora, um, these are, these are companies operating at entirely different orders of magnitude.

You mentioned the, the Anthropic Freshfields deal that was announced a couple of weeks ago.

Um, I spoke to global CIO at Freshfields, Gil Perez, and I think one of the, the main things that stood out to me in our conversation was the reason they opted for a generalist AI model rather than a legal tech specific, um, rather than a legal specific model.

Uh, he, he cited, uh, deficiency in transparency in the likes of Harvey and Lagora.

Uh, talk us through what you found.