Thomson Reuters Corp. is set to launch its own artificial intelligence model specifically designed for legal practitioners, following promising results from internal testing. The model, known as Thomson, was developed over two years in collaboration with Safe Sign Technologies, a UK-based startup acquired by Thomson Reuters last year. This initiative comes as the company reported a notable increase in its second-quarter revenue, prompting an upward revision of its annual growth forecast.
Thomson Model Shows Competitive Edge
The Thomson model was developed on a budget of approximately US$40 million, utilising just 8 per cent of the company’s extensive legal content library. Recent benchmarking tests revealed that the model performs competitively against leading products from AI pioneers such as OpenAI, Anthropic, and Google DeepMind, particularly in legal-related tasks. CEO Steve Hasker expressed his enthusiasm for the model’s performance, stating he was “excited, to say the least,” during a Wednesday interview after the company presented its financial results for the quarter ending June 30.
Strong Financial Results Drive Growth Expectations
Thomson Reuters reported a 9 per cent increase in quarterly revenue, amounting to US$1.95 billion. The company also noted a 10 per cent rise in its three core divisions—legal, tax and accounting, and corporate services. During the same quarter, net profit rose to US$448 million, or US$1.02 per share, compared to US$313 million, or 69 cents per share, from the previous year. The adjusted earnings of 99 cents per share exceeded analysts’ expectations of 96 cents.
In light of these results, the company has adjusted its revenue growth target for the year to approximately 8 per cent, up from the previous forecast of 7.5 per cent to 8 per cent. Hasker emphasised that the focus for the remainder of the year and into 2027 will be on expanding the range of AI-enabled products and encouraging widespread customer adoption.
Future Plans and Strategic Moves
Looking ahead, Thomson Reuters is not just resting on its laurels. The company plans to license the Thomson model to major law firms, allowing them to integrate it within their own systems while maintaining control over their intellectual property and data. Hasker indicated that the proprietary model has room for further enhancement as it is retrained with more of the company’s legal archives. Furthermore, later this month, the Thomson model will be integrated with an analytical tool in the CoCounsel Legal product.
In a strategic move to bolster its financial position, Thomson Reuters recently announced a deal to sell a majority stake in its global print division to KKR & Co. Inc. for US$500 million. This divestiture is aimed at reallocating funds from a declining segment of the business to invest in priority areas, including its AI initiatives.
Despite these positive developments, the company’s shares fell by 10.2 per cent to $137.49 on the Toronto Stock Exchange, reflecting ongoing market concerns regarding potential disruptions within the software industry. Year-to-date, shares have declined by 22 per cent, though there has been a rebound since June.
Why it Matters
The launch of the Thomson AI model signifies a pivotal moment for Thomson Reuters as it seeks to redefine its competitive landscape in the legal tech sector. As the company aims to leverage artificial intelligence to enhance service offerings, its ability to attract clients and expand market share will be crucial. The successful integration of AI technology could not only boost revenue but also position Thomson Reuters as a leader in the rapidly evolving legal technology marketplace, ultimately reshaping how legal services are delivered and consumed.
