AI is transforming how legal departments operate. From contract review to discovery, legal teams are finding that AI can save time and money while providing insights that were not previously possible. However, effectively implementing AI requires more than just plugging in the latest software. Legal departments need strategies to ensure AI is integrated in responsible ways.
The key to successful AI adoption is understanding how legal teams spend their time. For example, an international law firm seeking to implement AI conducted over 100 interviews of paralegals, attorneys and other legal staff. They then analyzed the findings, allowing them to map out department workflows and identify numerous repetitive processes ripe for automation.
Clients are moving beyond asking law firms about their use of AI to demanding its use as part of the engagement process. These include using AI for document proofreading, formatting briefs, filling out timesheets and assigning client requests to appropriate lawyers. Automating these mundane activities gave legal staff at the firm more time for substantive work, increasing productivity.
When first implementing AI, it’s best to focus on repetitive tasks over complex work. Generative AI shows early promise for automating drafting of contracts and patents. However, it’s wise to start with high-volume agreements like NDAs, vendor contracts and basic employment offers.
The department should prove the effectiveness of the tech by successfully and consistently drafting routine documents before assessing whether AI is ready to handle the first cut on complex merger and acquisition agreements. This approach does not just help the tech — it helps the team, as it allows them to become increasingly comfortable using AI capabilities from the ground up.
The legal leadership at a multinational, Fortune 500 company, which has more than 90% AI adoption across its workflows today, took the initiative to assess department workflows, train staff on AI capabilities and focus first on automating high-volume tasks before tackling more complex ones. By doing this, the legal leaders were able to maximize benefits while minimizing risks.
Within a year, the legal department was leading every department in the company with its AI adoption/use rates — an amazing feat for any legal department let alone a tech savvy biotech/pharma company. AI was drafting basic contracts, automating meeting summaries and beautifying documents — saving legal staff more than 200 hours per month of administrative work.
Author: Pamela Salling
Top 10 reasons procurement wants a CLM—and why every function should demand it (with AI’s Game-Changing Role)
Effective contract management is a challenge for virtually all organisations. Whilst larger, more mature enterprises tend to have dedicated procurement teams to handle performance of contracts, this is not the...
Contract Lifecycle Management (CLM) is about more than just storing contracts; it’s a key driver of business efficiency. Integrating AI and automation into CLM can completely revolutionize how contracts are...