The impact of generative AI on corporate legal teams

Ready or not, AI is here. Although the full impact of AI technology on the legal profession is yet to be known, it’s clear that a change is already underway.

A study by Wolters Kluwer revealed that 76% of corporate legal teams are using generative AI at least once per week. Another recent survey by the Association of Corporate Counsel found that more than one-third of in-house teams are using AI solutions designed for legal professionals. It seems that both general-purpose and industry-specific gen AI solutions have found their way into the workflows of corporate legal departments. 

Corporate legal leaders know that these new tools are more than just a trend. A Deloitte survey of in-house legal teams found that 79% of respondents believe that “generative AI will have a moderate to significant long-term impact on how legal work is performed.”

It's easy to understand why they predict such a big effect. Generative AI can be a powerful tool to simplify workflows and minimize manual tasks, freeing up time for more valuable activities. This can mean outsourcing fewer tasks to outside firms and taking a more proactive approach to preventing issues for the company.

AI technology is already changing the way corporate legal teams work — but how are they using it, and what concerns are they facing as they embrace the age of AI? 

How should corporate legal teams use generative AI?

iManage recently conducted a survey with Above the Law of legal operations professionals. Our results indicated that, given what can reliably be achieved today, three main AI use cases are most interesting to respondents: Contract analysis, Document comparison & review, and legal search & research.

Different functions of the legal department are also likely to benefit to varying degrees from implementation of AI. According to the Deloitte survey, 73% of respondents see “Contracts & Commercial” as likely to experience a “significant impact” from generative AI. This makes sense given gen AI’s utility in document drafting, analysis, and comparison. 

How quickly are corporate legal teams embracing generative AI?

Use of AI is high on corporate legal teams; as previously referenced, Wolters Kluwer found that 76% of corporate teams are using gen AI at least once a week. However, looking beyond adoption rates reveals a more complex picture. A survey by Ari Kaplan Advisors found that half of participants rated legal ops professionals’ familiarity with AI tools and best practices at a one or two on a five point scale (five was the highest).

Furthermore, anxiety around gen AI is high. Our survey with Above the Law revealed that 86% of survey respondents were concerned about the potential security risks associated with generative AI. This makes sense considering the numerous concerns with the way public generative AI tools like ChatGPT may store and utilize data, especially when users input sensitive information or intellectual property. 

How can corporate legal teams use AI securely?

With any new technology, security must be a top concern. At iManage, we’ve been amplifying for many years, and particularly since the proliferation of remote working, the need to ensure all work-related materials are contained in a secure, central repository with advanced protections, wherever they are accessed from and on whatever device. AI has introduced a new wrinkle for teams that deal with sensitive or confidential information.

Having a well-defined company AI policy can go a long way toward avoiding security risks with employee AI use. Investing in secure, AI-powered technology is another option to ensure that AI can become a useful part of your team’s workflow without risking your confidential information.  

A member of your team

“[Due to the benefits of AI] in-house lawyers will finally be empowered to focus on more strategic and interesting work, to provide greater data-driven insight, and drive business growth through accelerated and more agile support.”

The future of legal work? The use of Generative AI by legal departments, Deloitte

Generative AI, when implemented with a trusted vendor and grounded in reliable data, has numerous benefits for corporate legal teams. Its value goes beyond just being a useful tool — AI can be a teammate unto itself. Data backs this up: a report by Asana found that knowledge workers who see AI as a teammate are 33% more likely to experience significant productivity boosts than those who see AI as merely a tool.

iManage can be your teammate for AI-powered legal work. AI applications built natively into the iManage knowledge work platform automate content workflows and reduce manual tasks so corporate legal teams can focus on being a strategic partner to their business.

Learn more about how to add iManage to your team.