GenAI in Legal: Transformative Strategies and Challenges
As organizations reshape their legal workflows, the integration of generative AI (GenAI) emerges as a transformative force. How do organizations use GenAI on their legal teams?
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Document drafting and contract management will be/are major use cases for those deploying GenAI in their legal transformation strategy
Legal leaders anticipate enhanced efficiency as a major benefit of deploying GenAI
Skills gaps, unforeseen security threats and regulatory/governance challenges are some of the biggest barriers to legal GenAI adoption
GenAI is used primarily for document drafting and contract management
About three-quarters (74%) of legal leaders are currently deploying, or plan to deploy, GenAI as part of their department’s transformation strategy.
Is your organization currently deploying generative AI as a part of your legal department’s transformation strategy?
For respondents who have, or plan to have, GenAI as part of their legal department’s transformation strategy (n = 37), the most common use cases include document drafting (73%), contract management (65%) and document review (62%).
How is your organization using, or plan to use, generative AI as a part of your legal department’s transformation strategy? Select all that apply.1
Legal chatbots 46% | Due diligence 35% | Policy and procedure development 35% | Risk management 32% | Compliance training 32% | Compliance and regulatory monitoring 30% | Fraud detection 30% | Intellectual property management 16% | None of these 0% | Not applicable 0% | Other 0%
n = 37
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Question: In your opinion, what is the future of generative AI in the legal industry?
Generative AI in the legal industry was already showing significant promise, and it's likely that this trend has continued to evolve. Potential future developments could be Chatbots for Legal Advice: AI-driven chatbots can provide preliminary legal advice to clients and answer common legal questions. These chatbots may become more sophisticated and capable of handling a wider range of legal inquiries.
Improved efficiency is the most anticipated advantage of deploying GenAI
Leaders have seen, or expect to see, improved efficiency (86%) as one of the biggest benefits from GenAI deployment.
What benefits has your organization seen, or expects to see, from generative AI deployment? Select all that apply.1
Reduced overhead costs 49% | Improved accuracy 49% | Improved decision making 49% | Improved consistency 46% Improved resilience 35% | Improved employee morale 35% | Improved customer satisfaction 32% | Improved sustainability 30% | Improved cybersecurity 22% | None of these 0% | Not applicable 0% | Other 0%
n = 37
Question: In your opinion, what is the future of generative AI in the legal industry?
I think it will add efficiency (much needed) and take away some amount of drudgery, so that we can think about other matters.
Lack of experience hinders legal GenAI adoption
68% of respondents cite skills gaps as a main barrier to GenAI adoption, followed by unforeseen security threats (50%) and regulatory/ governance challenges (50%).
What do you see as the main barriers to generative AI adoption in legal, risk, and compliance overall? Select up to 3.
Ethical concerns 44% | Lack of widespread adoption 40% | Integrations with existing technology 36% | Costs 24% | Lack of executive interest 22% | Lack of business use case 18% | None of these 2% | Other 0%
Question: What concerns, if any, do you have about the ethical and regulatory implications of using generative AI in the legal industry?
AI is not capable of fixing or automating every single thing - some items will still require manual updating and analysis. Additionally, once you start using AI and collecting data, you still need people to work in the system and clean up the data. Many legal departments or firms that start this process don't understand that, and therefore never fully implement or utilize the capabilities. You have to understand what it can do and what the limitations are.
In their own words...
Question: In your opinion, what is the future of generative AI in the legal industry?
Could be helpful for improving efficiency in contract management lifecycle or initial template drafts (but a lot of actual attorney review needed for AI outputs)
The future looks bright for certain defined tasks such as contracting and drafting documents using generative AI, but there will be some limitations where expertise is required in law and some opinions/interpretation of the regulation/law would be required.
Respondent Breakdown
