Some tips for acquiring and incorporating AI-based tools into your company's processes
Generative AI (artificial intelligence) offers great potential to transform both legal practice and law firm management. Whether you’re already convinced of the contribution and impact of AI on the legal industry, or you’ve just been tasked with exploring the use of AI in your firm, we’re here to help.
Consider the following model, outlined below.
1. Explain generative AI
A valuable tool for automating various tasks, generative AI is a type of artificial intelligence that creates content from scratch. One well-known example is ChatGPT, a large-scale language model that processes vast amounts of text and creates new text based on identified patterns.
While large-scale language models are very useful for drafting and authoring, human input is required to determine whether new content is trustworthy and how best to interpret it.
While many legal professionals are hesitant to adopt today's latest AI technologies, many recognize their potential value.
According to a March 2023 Thomson Reuters survey, more than one in three professionals at large and medium-sized U.S. law firms are considering generative AI for their work. Additionally, more than 80% of legal professionals surveyed said there are ways this technology can be applied to legal practice.
2. AI increases efficiency
Law firms are constantly competing for clients and talent. At the same time, we want to grow and maximize profits with each partner. Inefficiencies can hinder these efforts.
Clients expect their companies to provide excellent work and representation, and to do so in an efficient manner. Additionally, new employees join companies with the expectation that automation will minimize repetitive tasks and minimize mistakes. Legal AI tools can help you automate certain tasks and improve efficiency and accuracy across your enterprise.
3. Enhanced work products
Companies can use generative AI to improve both their legal practices and business management. While law firms are still exploring all the ways to leverage generative AI, the majority are already using some of the best AI for legal research, according to the 2020 Thomson Reuters AI Survey .
These companies cite increased efficiency and time savings as key benefits. And when AI solutions are based on trusted datasets, their benefits can also be applied to the creation of legal work products.
How analytics can help build the business case for AI
On the business side, customers and potential customers will expect companies to become more tech-savvy in the future and use all the latest solutions, such as generative AI.
Companies can train AI-based analytics based on their own operational experience. This will help you uncover your strengths, weaknesses, and abilities, assign a lawyer to your case, and prove your track record to potential clients. You can also use this data to identify time- and cost-related patterns to improve customer relationships and pricing structures.
Generative AI can also help reduce time spent with clients pushing back billing time. While this may reduce short-term revenue, demonstrating efficiency to clients helps maintain the long-term health and relationships of your company.
4. Assess the risk
Many legal professionals are understandably concerned about the risks associated with using generative AI in their work. Accuracy and privacy are two key issues that need to be addressed when presenting the business case for AI.
To reduce risk, you should avoid using specific client information in prompts and choose a platform that does not collect or request ownership of queries. And if your team uses his AI models for legal research or drafting, you also need to make sure the AI models come from a trusted source.
5. Determine your ROI. What's in return?
Because generative AI tools are still in their infancy, it can be difficult to quantify the ROI and impact of AI in law firms. The ability to make a business case for AI will be enhanced by the insights gained from data reported by early adopters.
In the meantime, take a look at how your company measures the success of its technology efforts. If you're focused on efficiency, usage, or contribution to revenue or profit, you can quantify ROI in several ways.
- Calculate the time saved in non-billable time that can be converted to billable time
- Convert usage statistics to percentage of billable hours
- Improve job satisfaction and employee retention by saving time on daily tasks
- Demonstrate increased customer satisfaction and a higher likelihood of retaining customers who understand your commitment to efficiency and accuracy
prepare your case
When it comes to the future of AI and law, the industry is likely on the brink of revolution. Creating a business case for AI in your company will help you stay competitive and avoid being left behind.
To further prepare for your case, read our white paper, “The Business Case for AI in Law Firms,” which details additional topics, including:
- Deadline and implementation
- Preparing to provide a business case
- bring everything together