GenAI will disrupt client-firm relationships and billing models. It’s not just me saying it, 657 in-house legal professionals are saying it too.
That’s the topic of this blog post by Petra Pasternak of Everlaw titled (wait for it!) Industry Observers Predict GenAI Will Disrupt Client-Firm Relationships and Billing Models (available here). In it, Pasternak discusses Everlaw’s survey of 657 in-house legal professionals across 30 countries, co-developed with the Association of Corporate Counsel, which found that adoption of GenAI had more than doubled, to 52%, year over year.
Part one of the survey, Generative AI’s Growing Strategic Value for Corporate Law Departments, found that GenAI is helping legal professionals work faster, communicate more effectively, and deliver better client service. And one-third of in-house teams are already seeing measurable cost savings. This is naturally changing the amount and types of work that in-house teams choose to outsource. Many in-house professionals now predict a recalibration in how outside counsel deploy GenAI, and how legal services will be priced.
The second part of the survey, The Role of GenAI in Proving Corporate Law Department Value, examined the ways in which GenAI is improving how in-house teams articulate business value and redefine their status from cost center to business driver. The leading benefit identified in the research was that teams are more quickly delivering legal support and matter resolution.
A couple of other notable findings:
- A significant disconnect exists between how in-house teams use GenAI and how they monitor their outside counsel’s use of the same technology. That’s illustrated by the fact that only 12% of respondents track outside counsel performance metrics, and only 12% track return on investment (ROI) for technology adoption.
- The traditional business model of the legal industry – the billable hour – is facing unprecedented pressure as GenAI highlights the disconnect between time spent and value delivered. 59% of respondents report no noticeable changes in billing from firms known to be using GenAI. But approximately 61% are “somewhat” or “very” likely to push back on traditional law firm pricing models in favor of more transparent structures.
So, what other notable findings are there? Find out here, it’s only one click! Who doesn’t want to know what 657 in-house legal professionals have to say? 😊
So, what do you think? Do you agree that GenAI will disrupt client-firm relationships and billing models? Please share any comments you might have or if you’d like to know more about a particular topic.
Image created using Ralph Losey’s Visual Muse, using the term “a robot business person and a robot lawyer reviewing a bill together” (starting prompt).
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