Article

The future of legal work?

The use of Generative AI by legal departments

Our perspectives and the results from our Generative AI survey for corporate legal departments.

Exploring the potential of Generative AI in legal services

Despite the transformative promise of ‘legal tech’ over recent years, the work of the legal function has remained largely unchanged and legal technology solutions have delivered only incremental improvement. At Deloitte Legal, we believe that Generative AI has the potential to drive genuine, sustainable change in the way legal services are received and delivered.

We conducted a survey to gather our clients' views on Generative AI, including its benefits, barriers to adoption, and impact on the legal ecosystem. The survey involved senior legal leadership from 43 of our largest clients. The executive summary presents the key findings, while the full report includes our market insights and perspectives on the future of legal work and the legal industry.

 

Generative AI will have a transformative, far-reaching effect on legal departments

The impact: A once-in-a-generation change in productivity. Not only do the vast majority of respondents believe that Generative AI will have a moderate to significant impact on how legal work is performed, many predict that it will render some legal tasks obsolete.

The benefits: Efficiency and productivity tops the list of benefits, followed by an enhanced legal experience for clients and legal professionals as well as the ability to improve legal service delivery 

The legal ecosystem: Generative AI will drive a fundamental shift in the legal workforce and in-house external mix, with the ‘unit cost’ of delivering legal services decreasing. This will present CXOs and GCs with strategic choices about how and where to invest additional capacity created by the use of Generative AI.

The adoption journey: Legal departments will need to act swiftly and decisively if they are to meet high ambitions for adoption, particularly as current adoption levels are low. Legal should be seeking to overcome barriers—particularly financial—by making the case for Generative AI to be a priority investment area.

External providers and law firms: The external legal market will be disrupted with those embracing Generative AI gaining competitive advantage. Legal departments are looking for leading firms to play a vital partnering role in the adoption of Generative AI on initiatives like proofs of concept.

 

What are the practical next steps for legal departments?

Legal departments expect an ambitious acceleration of Generative AI adoption. While 76% of our respondents report no current adoption of the technology, 86% expect targeted or broad adoption within 2–3 years. To achieve this level of adoption in this timeframe, legal leaders need to take swift positive action. We see five key steps that every proactive legal department should take now:

Put governance in place for use of AI

When it comes to Generative AI, the General Counsel (GC) is responsible for both its safe introduction to the entirety of the organization and in using the technology to improve legal service delivery. The legal department can play a leading role, working closely with risk, IT, data, HR and other corporate functions, to establish governance and risk frameworks for Generative AI’s safe and ethical use. This is an opportunity for the legal department to both enable board-level strategic priorities for the business and accelerate business growth, while also building confidence in adoption within the legal department.

Get lawyers using Generative AI

It is only through using the technology that lawyers can identify how it can best be applied to meet the needs of their legal team and wider business. Legal teams should be given access to Generative AI tools to experiment and learn through targeted proofs of concept. Ongoing focus is needed on training, feedback, best practice sharing, and adoption to move the department forward collectively. Legal leadership teams should be included in these endeavors. This will equip them with a foundational understanding of the technology and its impact to set a positive vision for the future and support teams through inevitable change.

Evaluate and prioritize use cases, and then develop/refresh your digital roadmap

Legal teams should start to identify and evaluate use cases with light touch governance. As priority use cases emerge, legal departments should re-appraise (or develop) their digital roadmaps, assessing the extent to which current technologies have the capabilities to meet their needs. This requires that legal departments understand both the organizational technology landscape, available enterprise tools, as well as the legal technology market to understand the art of the possible. Lean on external partners to support these endeavors: they bring vital external perspectives and methodologies that will be increasingly important as corporate functions compete for investment.

Focus on hygiene

Use Generative AI to make data clean up exercises easier and more cost effective. Identify the data that is critical for solving your business problems. This could be data in your document repositories, from the wider business, external market data, or data from external law firms. Test Generative AI’s ability to extract insight from this data and identify what data improvements are needed to leverage Generative AI in the future and begin actioning them.

Plan for the long-term

With Generative AI evolving at such a rapid pace, long-term planning can feel very challenging. However, it is important for leaders to consider the strategic implications of the technology on the wider business, the internal workings of your legal department, and on your external partners. Focus first on these three areas and plan for the long term.

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