Recently, the corporate legal sector has witnessed an exciting transformation. The Association of Corporate Counsel (ACC) in the United States, in collaboration with Everlaw, has released a new report on the impact of Generative AI (GenAI) on the corporate legal industry. Titled "Gen AI and the Future of Corporate Legal Work: Are In-House Teams Ready?", this report reveals the rapid application of generative AI in legal work and its profound implications for the legal profession.
Image Source: The image was generated by AI, provided by the image licensing service Midjourney.
The report indicates that nearly half of the respondents (49%) believe that generative AI will reduce operational costs, with many seeing a significant increase from last year's figures. In 2023, 33% of respondents expressed their hope to control costs through technology and AI, up from just 12% in 2022. More encouragingly, 25% of respondents have already reported cost savings in operational expenses after using generative AI.
Moreover, 58% of legal departments expect to reduce their reliance on external legal service providers, especially under the impetus of generative AI. This figure has risen sharply compared to 2023, indicating a strong demand for cost-effectiveness from companies.
Despite the enthusiasm among many Chief Legal Officers (CLOs) for the application of generative AI, the overall legal team is not adequately prepared for the transformation. Data shows that about one-third of CLOs use generative AI daily, while 70% of in-house legal professionals use it at least once a week. However, less than a quarter believe their department is ready for the changes brought by generative AI.
In the report, legal operations professionals are optimistic about the prospects of generative AI, but mid-level lawyers have significant concerns about job security, with 67% of them expressing worry that their jobs might be affected. Notably, 59% of respondents are excited about how generative AI will impact their career development.
The report also offers a nine-step guide to help legal professionals effectively leverage AI to enhance their careers. This guide includes everything from building foundational AI knowledge, conducting tool evaluations, to ultimately becoming an AI-driven legal leader.
The release of this report coincides with the ACC's 2024 Annual Conference, attracting 475 Chief Legal Officers, General Counsels, and legal operations professionals. The rapid development of generative AI is profoundly reshaping the future of the legal industry.
Key Points:
📉 58% of legal departments expect to reduce reliance on external legal services, with many companies using generative AI to lower operational costs.
💡 Less than a quarter of legal teams believe they are ready for the professional changes brought by generative AI.
🤖 The report also provides a nine-step guide for legal professionals to effectively utilize generative AI to enhance their professional capabilities.
