The legal industry is experiencing significant shifts catalyzed by generative artificial intelligence (gen AI), according to the 2024 Future Ready Lawyer Survey from Wolters Kluwer. The report reveals that 76% of legal professionals in corporate legal departments and 68% in law firms now use gen AI at least weekly, with a substantial portion engaging with the technology daily. These figures underscore a move toward integrating AI to optimize processes and focus on complex tasks of higher value.
The survey, which collected insights from 712 legal professionals across ten countries, highlights the vast potential of gen AI in streamlining traditionally manual tasks like legal research, document review, and drafting. Yet, despite this enthusiasm, challenges such as technology integration, trust in AI-generated results, and ethical concerns persist. Notably, 41% of law firm professionals and 37% of corporate legal professionals express skepticism about gen AI’s reliability.
Moreover, the transformational impact of gen AI is expected to extend to traditional business models. A decline in reliance on billable hours could result, as 60% of respondents anticipate a shift towards flat fees and value-based billing. Firms need to be prepared for these adjustments, with more than half indicating readiness to adapt workflows and pricing models accordingly.
Attracting and retaining talent amidst these changes remains a challenge. Work-life balance, competitive compensation, and continuous learning opportunities are emphasized by 81% of legal professionals as crucial. As gen AI becomes entrenched, technological proficiency is increasingly vital in hiring decisions, a sentiment shared by 72% of respondents.
Additionally, the survey dives into the growing emphasis on environmental, social, and governance (ESG) issues. A disparity exists between corporate legal departments and law firms, with a higher percentage of the former feeling well-prepared to tackle ESG demands. Training staff and adapting to regulatory changes are identified hurdles, indicating a need for enhanced focus on ESG education.
The looming threat of information security also weighs heavily on legal professionals. With 74% recognizing the rising tide of cyber threats, a noticeable gap exists between the perception of general readiness (80%) and complete preparedness (29%). Comprehensive improvements in security practices are deemed necessary to bridge this gap effectively.
Overall, the report paints a picture of an industry at a transformative juncture, driven largely by gen AI’s rapid adoption. As the legal sector continues to navigate these challenges, Wolters Kluwer’s findings suggest that the profession’s agility and adaptability will be crucial in ensuring future readiness.