As we continue to grapple with the ever-evolving intersection of technology and law, an interesting piece of news has emerged: a considerable number of legal departments are expressing a preference for their law firms to incorporate generative artificial intelligence (AI) in their operations. In fact, they believe that such adoption may lead to cost efficiencies and improved service quality within their external counsel teams. This revelation is among the key findings of the 16th annual Law Department Operation Survey by the Blickstein Group and Deloitte.
The survey, which involved 77 in-house legal and legal ops professionals, representing diverse organisations, unearthed some noteworthy insights about expectations around the use of generative AI in legal services. Over half of the respondents, 54.5% to be precise, anticipate that the use of generative AI will bring about changes in the billing practices of law firms, fostering an increase in alternative fee arrangements (AFAs). Intriguingly, a larger portion of participants, a significant 68% majority, also hold the view that the value of law firms’ services would experience a positive surge should they harness the powers of generative AI.
Whilst certain legal departments are dabbling in employing generative AI themselves, the majority harbor expectations that their law firms should take up the mantle to determine the most beneficial way to leverage this innovative technology. It seems that the anticipated transition driven by AI in the realm of law is not just a prediction but an active demand from clients. Visit Legal Tech News for a detailed outlook on this matter.