Where are law firms in embracing GenAI in their practice? I’d say, most of the industry is still in the early stages and, in the realm of e-Discovery, we’re probably at the very beginning.
During a panel on eDiscovery and Case Management at ILTACON, an audience of eDiscovery practitioners was asked whether they had used GenAI tools in actual litigation. Nobody raised their hands.
This reaction is emblematic of where most law firms stand. Many law firms are limiting their adoption of AI to knowledge management and non-billable work. The reason is straightforward: Adoption of AI in active litigation reduces hours that are otherwise billable and threatens the bill-by-the-hour business model. The hope is that GenAI is mostly hype, clients will be amenable to very incremental change, and law firm business models will mostly stay the same.
To whatever extent this mindset permeates the legal industry, it’s mistaken. Corporate clients are eager for AI solutions that reduce litigation expense. In-house counsel are jumping at the chance to reduce litigation expenses by reducing document review costs and they are rewarding the firms that are presenting these cost-saving options. To the extent firms are not yet encountering this scenario, they will soon.
In the next year, as in-house counsel gather empirical proof that GenAI-driven document review is a viable solution that drives down costs, their expectations of an appropriate cost for large-scale litigation will evolve.
This is the year for eDiscovery leaders to vet GenAI solutions that will have a tangible and quantifiable impact on client cost. By next year, I anticipate that the firms who are not among the early adopters of GenAI will find themselves under pressure from their clients to cut costs and attorneys will be looking to their practice support teams to have answers as to how they can compete for business.
I’m curious to hear what others have been seeing. Do you think firms are more or less eager to adopt AI solutions? How quickly do you think litigation support teams will adopt GenAI software?