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Law firms considering AI spin-offs may find the route to fresh capital crowded, with valuations that do not match the sector’s lack of profitability. The Financial Times makes that case in a newly published commentary on why firms should resist the lure.

Why it matters

It is a useful counterweight to the idea that separating an AI business automatically makes it easier to fund. The harder question is whether a spin-off creates a stronger business, or simply gives an unprofitable market a new label.

Discuss: Would a law-firm AI spin-off make the business more investable, or just put a new wrapper around the same profitability problem?

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