The future has arrived, as the saying goes, but it is yet to be evenly distributed. This sentiment rings particularly true for the fifth edition of Wolters Kluwer’s annual 2023 Future Ready Lawyer Survey Report, which examines the readiness of law firms and legal departments to face escalating changes.
The hypothesis of the report promotes the idea that some law firms and legal departments are further advanced in their technological depth and investment in human resources, leading to them being more prepared for the upcoming shifts within the industry.
Interestingly, the recurring examination of preparedness amidst legal professionals has shown it difficult to stay ahead of the curve. Every year, the report tallies the percentage of legal professionals who are categorised as “leaders”- those proactively leveraging technology. This figure has seen a decrease from 54% in the previous year to 46% in 2023.
However, this decline does not imply that law firms and legal departments are leveraging less technology. Rather, it serves as a stark indicator of the constantly rising bar within the industry. The surprise advent of generative AI has significantly influenced these expectations this year.
The transformative journey for the legal industry doesn’t stop at the generative AI. The industry is also dealing with the complex implications of hybrid and remote working systems induced by the global pandemic. This confluence of disruptions manifests as a new set of challenges for staffing, recruitment, and employee retention.
The statistics from the report are as follows:
- A majority of lawyers believe generative AI will bring changes to their work approach.
- 73% anticipate the integration of generative AI into their work in the upcoming year.
- 68% feel ready for its imminent impact.
- 87% of lawyers reported that technology has positively impacted their daily work.
- 91% believe that having technology that can quickly adapt to change, and having access to the latest tools to improve productivity, is crucial.
Yet, despite the unanimous recognition of its importance, there’s still some reservation towards cutting-edge technology. A good example is how only 43% view generative AI as an opportunity, while 25% see it as a burgeoning threat. Similarly, only 46% are of the belief that they are fully capitalising on technology’s potential. A significant portion, 50%, see themselves as still in the transition phase.
Potentially, the contrast between the percentage of lawyers who comprehend the indispensability of technology and those who leverage it effectively, can be attributed to organisational structures. The report found that 44% of firms are hindered by dated methods, internal protocols, and slow decision-making.
Other deterrents to the adoption of technology are cost (10%) and lack of knowledge (36%), although this latter number decreased from last year’s 48%.
The report concludes by highlighting that, once the hurdles of organisational change and costs are overcome, technology will play a pivotal role in enhancing productivity, efficiency, and customer service at a time when client retention is a crucial issue.
The Future Ready Lawyer Survey 2023 not only sheds light on the uncertain and challenging times for the profession, but it also showcases the willingness and resilience of the legal profession in adopting change and embracing new opportunities.