BDO's Legal Tech TalkWhat Problem Are You Really Solving? Tyson Ballard on AI and Legal Ops
About this episode
Recorded live at CLOC 2026 in Chicago, Daniel Gold and Eric Derk talk with Tyson Ballard, CEO and founder of Stellar Legal, a consulting firm focused on AI enablement, contracts and legal operations. Tyson argues that every AI project has to start with the problem it solves, explains why he is optimistic about jobs for the next generation, and describes how a young company passes its methods on to clients.
Key takeaways
- Before buying or building an AI tool, legal teams need to answer why: what problem it solves and how they will measure the result.
- Not enough people in legal are asking that question, which is why so many AI projects stall.
- Tyson compares AI in legal to AI in radiology, where demand for radiologists grew after the technology arrived.
- Junior lawyers still need the underlying skills, because someone has to glue the AI output together and check it.
- Consultants should teach clients their methods openly. Stellar would rather clients reuse its approach than depend on it.
Full transcript
Transcript from BDO's published episode, edited for transcription errors. Speaker labels added by Gold Standard Leadership.
Welcome to BDO's Legal Tech Talk podcast. We're joined by judges and legal professionals to discuss emerging trends, regulatory updates, and the latest headlines. We'll provide tips to help your law firms and legal departments make the most out of legal technology.
I'm Daniel Gold, BDO principal and eDiscovery managed services leader.
And I'm Eric Derk, BDO's managing director of legal operations. Let's get started with this episode's exciting discussion.
And welcome back to another special edition of BDO's Legal Tech Talk podcast. Eric and I are here live at the CLOC 2026 conference here in Chicago, Illinois, and we are excited to be joined here with Tyson Ballard. Tyson is the CEO and founder of Stellar Legal. Stellar Legal is a specialist consulting firm in AI enablement, contract excellence, legal ops, spend management solutions, as well as eDiscovery. And, you know, it's really interesting talking with you, Tyson, because one of the things that we quickly identified with you is that you are a serial entrepreneur and founder. And you seem to be on this quest for solving the legal professional challenge, not just in what you're doing at Stellar Legal, but also in your previous companies as well. What's your big driver?
Yeah. It's a really good question. First of thank you very much for having me. I really appreciate it, Daniel and Eric.
Yeah. I think it probably goes even back from an early mindset early childhood mindset where I've just always been curious with patterns and continuous improvement and essentially kind of questioning the why. I was always a very curious kid. And I think the moment I entered legal, which was a really long time ago, you know, Clifford Chance, I was really lucky and fortunate enough to get an opportunity there where you know, because I wasn't wanting to become a partner in a law firm.
But what I really did see is patterns and the way of being able to kind of standardize and improve those patterns, which has always been a curious thing for me. And I think I've taken that forward into the why, you know, why we created the company that we have today and then also the career that I've had. And I think I've been fortunate enough also to kind of, you know, gather some colleagues and merry band of followers along the way that kind of helped me on that mission. So yeah.
And I think it still excites me today, and then, obviously, we'll probably get into it. But, you know, it's an incredibly exciting time to be in the business that we do.
Yeah. Patterns, That's interesting because I've spent my whole life in legal operations, and patterns are and trends and are oftentimes really difficult to assess, particularly when it's not in a rote process like eDiscovery that's been proven and everyone kinda knows, like, what the EDRM is. So Yeah. With AI coming forward, we are hearing lots about changes in patterns from the billable hour to people doing more with less to maybe having less headcount.
But then we're also hearing a counterargument, which is, people are actually gonna be able to do more with more. Right? They're gonna be able to actually infuse lots of different data silos and sets and make more sense, greater sense, broader sense out of what they would normally just maybe look at a few documents and make a decision about. So in your work today, when you see all these vendors, where are you seeing, like, the focus on better pattern development?
It could be KPIs. It could just be ways of working. But tell us a little bit about when you talk about patterns, how you applied that early learning to, like, what you experienced in legal tech?
Yeah. And I think it's an interesting question. I think, you know, what we're seeing today is a plethora of data available to us that probably wasn't available to us when we started this game fifteen years ago. And I think if you can measure, you can improve. And and I think that's kind of the key point to take away here. We're being able to measure nearly, you know, so many things now that you couldn't measure before because you can use the AI tools to take that unstructured data and structured data and then ask them any question that you've ever wanted to ask that you couldn't ask before. Whereas before, you know, you'd be sitting side by side measuring the process or kind of, you know, gathering that data on a much more manual, you know, way of thinking.
I actually think that that's all great, but you still need to be questioning the why at the end of all of this. You know, what is the problem that this process is trying to solve, and what is the human need that is at the end of that process? And I feel that is a little bit of the disconnect right now because we've opened up the candy box to measure everything, but we're just still not kind of bringing it back to that simple question of the why in terms of what is that problem that we're solving.
The work that we're doing is, I guess, trying to kind of, you know, not steer away from the excitement that we have with all those tools that you can harness, but it's still to kinda keep it simple and, you know, focus on that north star of the of the why.
So that's really interesting because we seem to find that there's a couple of various different kinds of people that will leverage AI today in the in the legal profession. And you've got the one kind where their why is they just wanna do things faster. They wanna take maybe shortcuts. They want to be able to create a document faster, etcetera.
And maybe they won't look at it before it goes off and there's along the lines of there's all the hallucinated cases, etcetera. Then there's the other kind you're describing, the kind of individual that you're talking that you are, which is the curiosity, you know, the curious person. We call it the seeker of knowledge. Right?
You have to be a seeker of knowledge. So it's interesting how you frame the answer to Eric's question because I look at this through the lens of how many people are actually asking that why question? How many people are really trying to solve the problem? So how are you finding with all of your clients where you are able to really get down to like before you start talking about tool sets, you got to answer that question why.
Like, this is really no different than it was fifteen years ago. We still have to answer the question why. We still have issues, we still have people, we still have facts, and you still have to be able to connect them all together. So what are you seeing?
Are you seeing people really actually asking for that why?
Well, I mean, that's part of our job is to try and change that behavior. You know, I think, full honesty, I think what we're seeing is a mixture of, in big law, we're seeing a fear of a threat of what AI means for their business model. For the in house counsel, there's, you know, there's still that problem of the law firms telling them that they've got all these great tools, but why do they're still getting a rate increase every year, year on year? So I don't think it's quite gone yet to kind of the elephant in the room question, which is probably maybe we'll get to.
And truthfully, I don't think we have enough people asking that question why. You know, we respond to a lot of RFPs, a lot of proposals, like, I'm sure, like, you guys do too as well. And a lot of it is very tactical, map my process, tell me what I should do in terms of how do I drive adoption in my tech, etcetera. But fundamentally, I really don't think we're kind of asking that North Star question on the what is the problem that we're trying to solve for in these particular areas?
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I've been thinking a lot about the ultimate analogy and a lot of it's about how a river flows, erosion like people many will just go with the flow. Right? They'll just basically say, well, is kinda how we've always done it. And in this moment, that natural phenomenon of erosion and kind of like maybe how a river flows downstream is being challenged by some.
Right? We talked to somebody yesterday and they were talking about this person is a fractional CFO and they work with fifty companies and their business is good and by the way, they're older, right? They are super happy being where they are. The question that Daniel and I talk about a lot is what's happening to the patterns on the next generation?
Like, what's AI doing to the human psyche? It's not and not just within legal, but we as stewards of a business are many of us are just saying, damn the torpedoes, full steam ahead, I don't care which way the river flows, we're gonna actually do this and we're gonna not really worry too much about tomorrow because there's this overall impending craziness of the world, right? People are just like, let's just go grab it and stab it and we'll move on. So what are you seeing with how you're running your businesses?
Are you thinking about cultivating the next generation or are you building the next tools or like, when you really get to this idea of why, like, how is that baked into kind of everything you're doing or is it sometimes baked in and sometimes, listen, I'm up against the behemoth monolithic process.
Those patterns are never gonna change when it comes to discovery doc review or the billable hour. So how are you kind of thinking and challenging what you're doing with your businesses and answering the why?
Yeah. That's a that's a deep question.
I'm the deep thinker on this podcast.
Yeah. I appreciate that. This is like real talk. No. I mean, maybe I should start with the premise that probably I think the average age of someone at our company, Stellar, is probably around twenty six.
So we do have a lot of bright young things, essentially. And and, obviously, they come with just with a different level set of knowledge in terms of they know all the tools, but maybe they don't have a lot of the subject matter expertise because they haven't been there and done that. So I think that, you know, part of building the company that that we're hoping to build is exactly that. Like, I feel like we have a responsibility to develop that younger talent because the job roles are changing in what we do.
I think the second part to your question, which is, you know, it's all a race. It's so exciting. You know, let's take as much commercial advantage as we can in a short period of time and ****** the human job loss potentially along the way is an interesting one. Now I listen to a lot of podcasts, and I was listening to one recently about the founder of NVIDIA, and he was talking about one of the very first use cases of AI when he was talking about radiology.
You know, in the beginning, there were radiology. We can use AI to kind of, you know, provide analysis on results from, radiology exams, and there'll be so many less radiologists as a result. Now what happened was more tests can be done, so there's way more radiologists than are ever in, there was before.
And so I think I'm quite an optimist in that respect because I think fundamentally, people come to a lawyer to solve complex problems, and that purpose doesn't change. I think the repeatable administrative tasks can be done more efficiently. But fundamentally, you still need someone to apply that human judgment at the end of it. Yes, I think there may be more or less tasks on the you know, more lower complex and medium complex administrative repeatable tasks. But fundamentally, you still need someone to glue that together.
Since I'm the one that asks the lighter questions apparently on the podcast, we'll ask some lighter questions here. So this is not your first clock. So you've been to how many so far?
I think I was just trying to work out if it was my ninth or my tenth. So this is like I did miss last year.
And you're flying all the way over from Portugal?
Correct. I flew from Lisbon yesterday, and I'll leave in a couple of hours. So, unfortunately, I'm not gonna be here to see a lot of the great talks. But, yeah, I'm very thankful that it's this side of the states right now because, you know, we can get a direct flight here.
So when you've gone to other conferences in the past, what did you normally walk away from in those conferences feeling like? Did you get a feeling like, hey, I understand the legal operations business? Did you get a feeling of, gosh, like, there's so much work to be done in the legal operations world? Like, what was the feeling? And then also, my compound question for you, Councillor, is what are you hoping to get out of with this one?
I'm always curious to learn new things. So, like, what what has amazed me even just walking around the halls yesterday was, I mean, in terms of the kickoff, was how many new vendors are out there that I haven't heard of, which surprises me considering, you know, we're all in the same business, and I feel like we should be at the forefront of knowing who's new and great. You know, obviously, everyone's jumping on the buzzwords in terms of AI, so there's nothing that isn't AI. I think what I'm really looking to get out of it is, you know, I feel like, you know, we need to get stronger as a community in terms of collaboration. And that's why I love coming to these things because there's a whole bunch of us in one place at one time, and we're we're not on the end of a computer laptop screen, you know, we're we're in three d.
So I think what I get out of these is typically kind of like the, wait, oh, you know, you're working on this or, you know, you're doing this or you're using this tool to solve this problem. So I'm looking for probably those more corridor conversations by the water cooler or, I'm not gonna get a chance to see most of the talks because I have to leave later today. But I've gained a lot in the past from those talks originally in terms of, you know, frameworks to adopt and, you know, lessons that they've learned in terms of how they've delivered. I'm probably less interested in my tool does this and that the sales pitch around those tools because I feel, you know, I'm pretty abreast on those.
Yeah. It's definitely something that he and I were commenting on before this we just came from the keynote, and I've been to probably eight or nine clocks as well. And I mean, I'm sure that they've done this before, but this is the first time that the word community really is kind of hitting home to me. And what the leadership is doing now really seems to kind of go back to the origins of the whole consortium which is like help legal practitioners in an operational capacity to do good stuff.
And I guess my question for you is back to the why. When you kind of face client challenges, how hard is it to really address the why when they know that they've paid you a specific amount of money to figure out a certain job? And one of the challenges that Daniel and I always have is as consultants, clients don't always care about the why. They just care about getting it done.
So when you have a better idea or a new way of thinking or a new tool or a new process to question the why, what's your practice on how you solve for that?
Because I'm gonna take your IP and I'm gonna reuse it.
Copyright, Tyson. No. Actually, I think the more of us talk about this, the better in terms of how we share. Like, I don't pretend to think that what I'm doing is the or what we're doing is, you know, the panacea, but I think it's a really good question.
I think there's kind of three components to that, which, you know, at the law firm, I see a real resistance to change. So but what I'm seeing driving the change in terms of the why is the clients that are, you know, requesting the work. And I really feel like maybe the clients are underestimating the role that they need to play to kinda drive that change. And, you know, I think they're not insisting on it enough.
We're really fortunate to be a very young company that get tapped on the shoulder when people really wanna ask that question, why? However, sometimes it's not always the right question. And so how do you tell them in the nicest way that they've got an ugly baby and whilst obviously, you know, not jeopardizing the relationship? I think that's a really interesting dilemma that we have.
It's the art. It's a dichotomy. But, you know, I think in twenty years in this business, you know, I'm not a lawyer, but I feel like one skill I have quite got good at is letting lawyers feel like they've come up with the greatest idea. And that for me is kind of the me telling them that, you know, this is the problem and how to solve it is not the right way to go about it.
I need to guide them to understand that that they need to ask that question themselves and then get them to the answer. So quite often, you know, and I learned this really on way before I was in legal that that is a real kind of secret gift to kind of driving change, I think. And when it happens, and I don't think it happens all the time, unfortunately, but when it does happen, it's incredibly thrilling and incredibly rewarding and, you know, I've walked out of rooms going, yes. You know, like, I've I've really helped them here and I think that's why I get up out of bed in the morning.
Cool.
I love it. Thanks for staying curious and for sharing with our audience the secret gift. I think that's great. And also you know, we talk about the word community here. You've now been welcomed into the community of the BDO Legal Tech Talk podcast. So thank you so much for joining us and safe travels back.
Yeah. Excellent. Thanks guys. Have a great day.
You too.
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Daniel Gold is an attorney and a Principal at BDO USA, where he leads eDiscovery managed services. He hosts BDO's Legal Tech Talk, co-hosts the NeLI Pod and founded Gold Standard Leadership.
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