In our rapidly evolving legal landscape, the impact of GenAI on legal technology investments is of utmost importance. Predictions indicate that by 2027, the legal technology market will double in size due to the proliferation of GenAI, placing increased pressure on legal leaders to effectively adapt and respond. As the legal technology market continues to expand, it is imperative for legal professionals to grasp the capabilities of GenAI and its impact on the industry.
Key Trends and Considerations
To inform legal technology investments, it is essential to understand the key trends and considerations that will shape the industry. Developing a legal technology strategy requires a profound understanding of the opportunities and risks associated with GenAI-enabled technology solutions. Furthermore, it is crucial to capitalize on the benefits of GenAI legal technology while mitigating common pitfalls.
Investing in Productivity and Efficiency
Legal leaders are increasingly realizing the significance of investing in legal technology solutions to enhance productivity and efficiency. In fact, sixty-six percent of legal leaders have intentions to accelerate their investments in legal technology as a cost-effective method of managing workloads amidst budget constraints. However, the focus is not solely on cost-savings and automation; rather, the objective is to maximize the value contribution of legal staff by enabling them to concentrate on high-priority tasks.
The Emergence of an Augmented Legal Workforce
The conventional approach of solely focusing on short-term task automation is giving way to a more comprehensive strategy, wherein technology investments complement and enhance the capabilities of in-house legal employees. The rise of “generative AI,” or GenAI, is playing a pivotal role in the transformation of legal tasks such as research, contract management, and self-service systems. This shift towards an “augmented legal workforce” is expected to become increasingly prevalent, with 50% of office workers in global enterprises being AI-augmented by 2026.
Utilising GenAI in Legal Operations
The adoption of GenAI in legal operations presents vast opportunities to expedite legal work, streamline processes, and enhance the overall employee experience. From natural language processing to automated contract drafting and review, GenAI-enabled technologies have the potential to revolutionize legal tasks. Nonetheless, it is crucial for legal teams to comprehend the risks associated with premature investments in GenAI capabilities and to stay informed about emerging data concerns.
GenAI Use Cases in Contract Life Cycle Management
In the realm of contract life cycle management, GenAI use cases are still emerging but show significant promise. From agreement summarization to precise redlining, the potential applications of GenAI in contract management are vast. The ability to generate summaries of key contract terms and conditions in natural language while minimizing risk is just one example of how GenAI can transform contract life cycle management.
Enhancing Governance, Risk and Compliance (GRC) Solutions with GenAI
The integration of GenAI platform capabilities into governance, risk, and compliance (GRC) technologies is expected to significantly increase by 2027. As chief compliance and ethics officers increase investments in GRC tools, it is important to understand that GRC tools are not solely designed for IT risk professionals. In reality, the GRC market offers a range of products that support the needs of multiple functional leaders, providing comprehensive support for ethics, compliance, and risk management.
FAQ on Legal Technology
Understanding legal technology requires clarity on its fundamentals. Legal technology encompasses operations technology products designed to enhance in-house legal teams’ workflows, ensuring optimized workflows, cost-effectiveness, and productivity. Despite its numerous benefits, implementing legal technology presents challenges, the most prominent being the lack of expertise among legal leaders in comprehending departmental needs and prioritizing tech investments.
In conclusion, the evolution of legal technology, particularly with the integration of GenAI, is poised to reshape the legal landscape in profound ways. As the legal technology market continues to grow and adapt, it is crucial for legal leaders to stay informed about the latest trends, use cases, and considerations to make informed decisions regarding their technology investments.