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A new report entitled “Generative AI and the Future of the Legal Profession” has been released by LexisNexis Legal & Professionals, which highlights the surprising expectations of in-house counsel and law firms, while they aspire to adopt Generative AI.
In this blog, we will be looking after understanding the trends and some facts that have been mentioned in the report.
Brief details about the report-
It has been found in the report, that about 49% of the in-house counsels expect the law firms to be using Generative AI in the times to come. About 11% of the respondents believe that the firms will be already employing the technology in the upcoming 12 months. But it was found that only 8% of the respondents were not in favour of using Artificial Intelligence in Legal Duties, in contrast of which about 24% of the firms believed their clients to use Artificial Intelligence.
The survey was conducted amongst 1,175 legal professionals in the UK from May to June 2023, where it has been found that about 87% of the legal professionals were aware of using Generative AI tools. About 95% of the respondents agreed that these tools would have an impact on legal practices, 38% would have a significant impact, 11% would have a transformative impact, and 46% would have a minimal impact. Nearly three-quarters of the In-house Counsels, who make up about 70% of the responses agreed that law firms need to use cutting-edge technology, including generative AI-Tools.
About 36% of the respondents across both in-house and private sectors noted to have used Generative AI in a personal or professional capacity, where adoption rates are likely to increase in the coming months. This figure is expected to rise to 64% when it was found that many law firms alone and about 47% of those responses came from in-house lawyers. About two-thirds of the respondents noted that the use of Generative AI will increase efficiency. When the respondents were asked of using Generative AI in their work, most of the respondents mentioned that about 66% of those were used for research, 59% for briefing documents, and 47% for document analysis, which has the most potential. Also, it has been revealed through the survey, that industries are unsure about the changes that are ahead, where two-thirds of the participants have given mixed responses about the impact of Generative AI on the practice of law.
Differing objectives of Attorneys on the use of Generative AI
To understand the effect that Generative AI will have upon attorneys, there is a need to first examine the differing job types and objectives of the distinct attorneys. There are subtypes as most attorneys focus on the private sector and others on the public interest. Also, some attorneys prefer to work in the field of litigation, and the rest on transactions. The area of operation of an attorney mostly depends upon the multiplicity of the environments they work in, most of whom are associated with law firms and companies with in-house counsels.
When the case impact of Generative AI is concerned, the performance will have different results for different types of law firms, like Small Law Firms and Big Law Firms. Generally, Small Law Firms will benefit the most, if they will work in a calculative way, and big law firms will have to level-up their marketing and recruiting efforts. Thinking from the point of law firms, we can understand this in a way as;
Smaller Law Firms - Attorneys working in small to mid-sized law firms will benefit more from the use of Generative AI than the big law firms. The reason for this is, that smaller law firms operate from fixed-fee models. Also, they have fewer internal resources.
Big Law Firms - Big Law Firms will not be able to directly benefit quite easily. The main reason for them is related to the number of Billable Hours. As the Billable Hour Model does not simply incentivize efficiency.
However, looking at the entire factor of using Generative AI with law firms and Attorneys, big Legal Clients and Associates will stand to benefit from the law firms using Generative AI, as they are also equity holders. So, the result of using Generative AI will all the way be remaining as an interesting factor to be witnessed with detail.
Sources referred for the information and data
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