The Association of Corporate Counsel (ACC) and Everlaw have released a comprehensive report demonstrating the transformative impact of generative AI on corporate law departments.
The report, “GenAI and Future Corporate Legal Work: How Ready Are In-house Teams?” is based on responses from over 475 legal professionals in US-based corporate law departments, offers a detailed analysis of the current state and future expectations of GenAI adoption in the legal sector.
Key findings from the report examining the effects upon departments of AI include some key findings that also represent the impact of AI for law firms also, evidenced by other law AI reports.
Economic Impact
- 25 percent of law departments are already experiencing cost savings on operational expenditures from GenAI usage.
- 49 percent anticipate reduced operational costs from AI implementation.
- 58 percent expect a reduced reliance on outside legal service providers due to GenAI, more than doubling from 25% in the previous year’s survey.
Adoption and Usage
- One-third of Chief Legal Officers (CLOs) are using GenAI daily, with 79 percent using it at least weekly.
- 23 percent of legal professionals have proactively integrated GenAI into their daily routines.
- 70 percent of in-house professionals use GenAI at least once a week.
Talent and Readiness
- Less than a quarter of respondents believe their legal department is prepared for the talent implications of this technology.
- 64 percent of large departments (100+ staff) have appointed a GenAI subject matter expert, compared to 42 percent of mid-size departments and 25 percent of small departments.
Implications for Legal Professionals
The rapid integration of GenAI in corporate legal departments presents both opportunities and challenges for lawyers. While the technology offers significant potential for increased efficiency and cost savings, it also necessitates a focus on upskilling and reimagining roles within legal teams.
CLOs and legal department leaders must prioritize:
- Effective integration of GenAI into departmental operations
- Providing necessary safeguards and training
- Leading the way in upskilling employees
- Clearly defining expectations and rewards for GenAI proficiency
As Gloria Lee, Chief Legal Officer of Everlaw, notes, “Operational efficiencies can’t be achieved if departmental trust in using the technology is concentrated with a few subject matter experts”.
The EverLaw report demonstrates the growing importance of GenAI in the legal sector and the need for legal professionals to adapt and embrace this transformative technology to remain competitive and efficient in an evolving landscape.
