For many organizations, GenAI is seen by workers as akin to an office's new, super-powered assistant. It's like, in a manner of speaking, having a personal genie that can do everything from writing emails to creating marketing campaigns. Need a snappy slogan for your new product? GenAI whips one up in seconds. Struggling with writer's block for your next blog post? GenAI gives you a head start with some creative ideas.
It’s common to discuss how GenAI helps HR and security teams. It’s a game-changer for them.
But what most aren’t aware of is how legal departments also benefit from GenAI.
The Association of Corporate Counsel (ACC), in partnership with Everlaw, shined a light on the impact of GenAI on corporate legal departments. The report titled "GenAI and Future Corporate Legal Work: How Ready Are In-house Teams?" looks at the ways AI is reshaping the industry, from economic implications to career advancements.
One finding is the economic impact of GenAI on corporate legal departments. Nearly half of the surveyed legal professionals anticipate a reduction in operational costs due to AI implementation. This trend has accelerated dramatically over the past three years, with the percentage of respondents looking to technology and AI for cost control increasing from 12% in 2022 to 33% in 2023.
The financial benefits are more than just operational expenses. A quarter of legal departments have already realized cost savings by using GenAI, and over half expect a decreased reliance on outside legal service providers. This shift is driven by the increased efficiency and cost-effectiveness that AI brings to various legal tasks.
While chief legal officers (CLOs) have embraced GenAI, the report highlights a need for broader upskilling within legal teams. A third of CLOs are utilizing AI daily, and nearly 80% use it at least once a week. However, only a quarter of legal professionals believe their departments are adequately prepared for the talent implications of this transformative technology.
It's important to appoint GenAI subject matter experts, particularly in larger departments. By investing in AI expertise, organizations can maximize the benefits of the technology and avoid potential pitfalls.
“The expectation for in-house teams to cut costs with AI is becoming a reality, with over a quarter now reporting savings,” said Gloria Lee, Chief Legal Officer of Everlaw. “In just three years, AI technology's accelerating impact on corporate counsel has begun to reshape in-house legal functions, spurring a sea change across the legal industry.”
Still, while many legal professionals are enthusiastic about the positive potential impact of AI tools on their careers, there is also a growing concern about job losses and skill degradation.
According to the report, legal operations professionals are the most optimistic about the future, while mid-level attorneys are the least enthusiastic and most concerned about job security. With that said, the overall consensus is that AI will improve work speed, efficiency and creativity, while also fostering the development of new skills.
To help in-house legal professionals navigate the AI landscape, the report provided a nine-step roadmap. This roadmap encourages individuals to:
- Build an AI foundation: Develop basic AI literacy; identify AI needs in work; and champion AI adoption
- Experiment and integrate: Research and evaluate AI tools; pilot and refine AI integration; and develop expertise in using AI tools
- Become an AI-powered legal leader: Leverage AI for strategic advantages; advocate for continued AI investment; and stay updated on emerging AI trends
By following these steps, legal professionals can use AI to enhance their careers and contribute to the success of their organizations.
“With GenAI’s potential to significantly increase efficiency, improve client service and cut costs, it’s no wonder legal leaders are embracing this technology as they are continuously asked to do more with less,” said Veta T. Richardson, ACC President and CEO. “Those that can effectively integrate GenAI into their department’s operations, while providing the necessary balance of safeguards and training, clearly have a lot to gain."
The ACC and Everlaw report offered a unique overview of the impact of GenAI on corporate legal departments. As AI continues to evolve, it is clear that legal professionals who embrace this technology will be well-positioned to thrive in the future.
By understanding the economic implications, career implications and best practices for AI adoption, legal departments are close to utilizing GenAI at its full potential to drive efficiency, innovation and success.
Edited by
Alex Passett
