**Generative AI: The New Benchmark for Corporate Clients in Law Firms**
The adoption of generative AI in the legal sector is gaining momentum, with corporate clients increasingly demanding that law firms bidding for their business use this technology. A recent study by Thomson Reuters has revealed a significant increase in the percentage of firms and in-house departments using AI, from 14% to 26% in the past year. Key Findings:
• 59% of corporate law department respondents said they want their law firms to use AI, driven primarily by the desire for cost savings. • 8% of clients are specifying in their tender documents that law firms use generative AI. • Only 20% of organisations using generative AI are measuring the return on investment, with 79% tracking cost savings. The research highlights the growing importance of AI in the legal sector, with clients driving the demand for its use. Corporate clients are seeking to reduce costs and improve efficiency, and law firms are being expected to meet these demands. Measuring the Impact:
Only 20% of organisations using generative AI are measuring the return on investment. This is concerning, as it suggests that many firms are not fully understanding the benefits of using this technology. 79% of those that do measure the impact are tracking cost savings, which is a key benefit for corporate clients. However, 64% are also monitoring employee usage, 51% employee satisfaction, and 38% client satisfaction. A Balanced Approach:
Thomson Reuters believes that generative AI is not going to replace lawyers, but rather be used as a tool by them. This is reflected in the research, where 15% of respondents said that their own role was at risk. Addressing Concerns:
Steve Assie, general manager at Thomson Reuters, highlights the risks associated with the use of generative AI, including the potential for unauthorised practice by non-lawyers or the technology itself. He notes that a lawyer will still need to review and verify the output of any GenAI tool. Conclusion:
The study underscores the significant role that corporate clients are playing in shaping the adoption of generative AI in law firms. As the technology continues to evolve, it is essential that law firms develop a balanced approach to its use, leveraging its benefits while addressing its limitations. • Key Takeaways:
• Generative AI is becoming increasingly popular in the legal sector, driven by corporate clients’ demand for cost savings and efficiency. • Law firms must develop a balanced approach to using generative AI, leveraging its benefits while addressing its limitations. • Measuring the return on investment is crucial to understanding the impact of generative AI on law firms. Benefits and Challenges:
| Benefit | Challenge |
|---|---|
| Cost savings | Potential for unauthorised practice by non-lawyers or the technology itself |
| Improved efficiency | Need for lawyers to review and verify the output of any GenAI tool |
| Enhanced employee satisfaction | Risk of employee dissatisfaction if GenAI is not used effectively |
| Increased client satisfaction | Need for law firms to demonstrate the value of GenAI in reducing costs and improving efficiency |
Steve Assie’s Comments:
“I firmly believe that GenAI is not going to replace lawyers, it is going to be used as a tool by them.
news is a contributor at Enacture.com. We are committed to providing well-researched, accurate, and valuable content to our readers.
You May Also Like
