Last year was one of fervor and enthusiasm in relation to Generative AI (GenAI). With legal professionals testing these technologies vigorously, the interest was unprecedented, even reaching the meticulous ears of managing partners and curious clients. However, as we step into the next phase, it is essential that these applications start showcasing a return on investment and providing value. One way to help ensure this is by establishing key performance indicators (KPIs) to guide GenAI efforts.
The phase of trial and exploration represents the early stages of GenAI application in the legal industry. As professionals familiarise themselves with the tools and identify potential opportunities, it is recommended that they follow an experimental method. For instance, they could rely on hypotheses such as: “Using GenAI to summarise a large number of filings can be done more efficiently and swiftly than a single attorney executing the same task.” They can then structure an experiment, or short project, to assess the hypothesis. After the experiment, the results are reviewed to confirm or reject the hypothesis.
It’s also important to underscore the importance of knowing when to stop. If the hypothesis is disproven, they should reconsider their strategy or, if the outcomes are consistently unfavorable, they should consider stopping.
Should the journey with GenAI prove promising, the next step could involve listing and prioritising problems to be addressed and opportunities to be seized. Associated goals could relate to boosting revenue, cutting down expenses, improving efficiency, or augmenting customer/client satisfaction, among others.
Maintaining relevance to the goals of the respective organisation is key here. With alignment, it becomes easier to make decisions about which tasks to pursue or decline. Clear organisational priorities can lead to more focused resource utilization.
Metrics and KPIs are of no exception in this context. For corporate law departments, establishing metrics is a relatively straightforward task. Typically, corporations are interested in bottom-line improvements. However, for law firms, the task becomes slightly more complicated. Simply increasing efficiency may not equate to a boost in profits or revenue. It may, in fact, reduce profitability. The right metrics for law firms may potentially revolve around the ability to stay competitive or gain new clients.
Just as the late Harvard professor Clayton Christensen noted in his book, “How Will You Measure Your Life?”- not everyone sets out to fail, but stumbling upon failure is a common practice. By implementing experimentation, prioritisation and the right metrics, it is possible to achieve some form of assurance of success with GenAI implementation.
Reference Article: “How Will You Measure Your AI?”