It’s time for the Spring 2024 eDiscovery Business Confidence Survey, published (as always) on Rob Robinson’s terrific ComplexDiscovery site. Where does the confidence of individuals working in the eDiscovery ecosystem stand when compared to previous surveys?  Let’s see.

As always, Rob provides a complete breakdown of the latest survey results, which you can check out here. I’ve covered every quarterly survey since its inception, which is in its ninth(!) year!

While I’m continuing to look at all surveys conducted to look at trends over time, I’m displaying a rolling three years’ data for clarity as the entire history of more than eight years makes for a very crowded graph. Also, I should note that Rob reported results with two decimals again this quarter instead of the traditional single decimal (my reporting of the results are rounded to one decimal for consistency with previous quarters).

Last fall, Rob added new questions regarding the use of large language models and generative AI, so this is the second survey with those questions. I’m reporting on the results of one of those questions this time (in case you missed Rob’s coverage) and dropping trends coverage for the level of support question that I’ve covered over the years. Starting next quarter, I’ll begin to report on trends over time for those.

The Spring 2024 eDiscovery Business Confidence Survey response period was between January 15 and February 15, 2024. This quarter’s survey saw 81 eDiscovery professionals sharing their opinions on the business of eDiscovery. So, let’s get into it!

Providers at The Top Again: Software and/or Services Provider respondents were the sole leading group for the fourth quarter in a row with 33.3% (2.3% below the lifetime average, and a 7.7% drop from last quarter). Law Firm respondents remained at second at 30.9% (just above the lifetime average of 30.8%). Consultancy was third at 14.8% (1.5% below the 16.3% lifetime average). If you count law firms as providers (they’re technically both providers and consumers), providers account for 79% of total respondents (7% lower than last quarter and the lowest since Winter 2023). Corporation respondents were fourth at 7.4%, 0.8% lower than the lifetime average of 8.2%.  Here’s a graphical representation of the trend over the last twelve surveys:

So, how confident is a provider influenced group of respondents in eDiscovery business confidence in the Spring 2024 eDiscovery Business Confidence Survey?  See below.

Current Business is Top and Middle Heavy: Respondents that considered business to be good slipped back down to 50.6% (2.3% below the lifetime average). Another 48.2% of respondents consider business to be normal (9.5% above the lifetime average). The good news is that only 1.2% of respondents rated business conditions as bad (7.2% below the lifetime average of 8.4% and the lowest ever). Here is the trend over the last twelve surveys:

So, do respondents in the Spring 2024 eDiscovery Business Confidence Survey expect business to rise in six months?  See below.

Mostly Optimism Going Forward: 93.8% of respondents expect business conditions will be in their segment to be the same or better six months from now (down 2.2% from last quarter’s 96%, but about half – 50.62% – of respondents expect it to be the same. However, 58% expect revenues to be up (a big rise from last quarter’s 45%) while 38.2% expect it to be the same (leaving only 3.7% expecting lower revenues). As for profits, respondents expecting higher profits rose 8.4% to 44.4% (which is 4.8% higher than the lifetime average of 39.6% and the highest since Fall 2021), while 45.7% expected flat profits and 9.9% expected lower profits (2.6% lower than the average).  Here is the profits trend over the last twelve surveys:

Will we head higher or lower from here?  We’ll see.

“Type A” Factors: Continuing to look up new “type” puns! Increasing Types of Data continued at the top spot with 30.9%, which is 10% above the lifetime average of 20.9% and the ninth time in ten quarters at (or tied) for top spot. Increasing Volumes of Data rose to second with 22.2% (1.8% higher than the lifetime average). Budgetary Constraints was third at 21% (4.8% below its lifetime average). Data Security was fourth at 11.1% (1.0% below the lifetime average of 12.1%). Inadequate Technology rose a spot to fifth place at 9.9% (2.6% higher than the lifetime average of 7.3%. Lack of Personnel fell to sixth at 4.9% (a whopping 8.5% below the lifetime average of 13.4). The graph below illustrates the distribution over the last twelve surveys:

Will any issue ever top Increasing Types of Data again? We’ll see.

Delivery Improves (Again) in the Third Results on LLM/GAI Benefits: Regarding the question “which do you perceive as the primary benefit of integrating LLMs and GAI into your organization’s operations or offerings?”, Improved Service/Product Delivery was the top choice at 46.9%, which improved (again) more than 5% over last quarter’s 41%, followed by Competitive Advantage at 22.2%, higher than last quarter’s 19%, then Cost Savings at 13.6%, almost than 6.5% lower than last quarter’s 19%. Enhanced Decision Making at 9.9% was on par with last quarter’s 9%, with Risk Mitigation fifth at 2.5%, over 6.5% lower than last quarter’s 9%. Only 4.9% see No Perceived Benefit, but that’s almost 2% higher than last quarter.

Looks like the Spring 2024 eDiscovery Business Confidence Survey shows respondents beginning to be optimistic, with many expecting things to improve in six months. What will happen next quarter? Check back here!

Again, Rob has published the results for the Spring 2024 eDiscovery Business Confidence Survey on his site here, which shows responses to additional questions not referenced here.  Check them out.

So, what do you think?  Are you optimistic about eDiscovery business?  Please share any comments you might have or if you’d like to know more about a particular topic.

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Disclaimer: The views represented herein are exclusively the views of the author, and do not necessarily represent the views held by my employer, my partners or my clients. eDiscovery Today is made available solely for educational purposes to provide general information about general eDiscovery principles and not to provide specific legal advice applicable to any particular circumstance. eDiscovery Today should not be used as a substitute for competent legal advice from a lawyer you have retained and who has agreed to represent you.