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A recent ½Û×ÓÊÓƵ report explored the role of generative AI in the legal sector. We look at why in-house teams have a particular appetite for AI and the ways in which they are employing the tech

The recent ½Û×ÓÊÓƵ report, , aimed to understand awareness of generative artificial intelligence (AI) in the legal sector, including plenty of information on the ways in which in-house teams are using and will use generative AI.

The current use of generative AI in law seems minimal, with just over a third (36%) of respondents suggesting that they’ve used it in some capacity. But that number grows to nearly half (46%) when accounting for in-house lawyers. That is perhaps unsurprising, as companies tend to possess a greater appetite for innovative tech, especially compared to the often conservative and risk-averse law firms.

Of the , in-house teams seem most enthusiastic. According to the , just over one in ten (11%) respondents claim to use generative AI at least once a month, a number that grew to 17% for in-house lawyers. In this article, we explore the reasons in-house teams are more receptive to AI and uncover the many ways in which the tech may prove useful.

The growing in-house appetite for generative AI

Nearly three-quarters (70%) of in-house respondents agreed or strongly agreed that companies should be using the latest cutting-edge technology, including generative AI tools . And nearly half of in-house respondents believed they would use generative AI in the next 12 months.

The appetite for AI is evidently strong. Mark Smith, director of strategic markets at ½Û×ÓÊÓƵ, says that generative AI is ripe for application: ‘The user friendly and easy to deploy nature of this technology perhaps makes it much more accessible to in-house than the previous generation of extractive AI.’ The ability to easily use generative AI, the , and the willingness of companies to experiment explains the increased appetite among in-house teams.

It seems likely, then, that in-house appetite will grow. And adoption rates will likely surge in the coming weeks and months, with 39% of respondents to the report saying they are currently exploring new AI opportunities, a number that rose to 47% when accounting for in-house lawyers. Generative AI will mould the  and the top in-house lawyers will take advantage of the tech.

How in-house lawyers can use generative AI

Generative AI saves in-house lawyers time, according to . Almost two-thirds of respondents (65%) agreed that generative AI would increase general efficiency, a number that rose to 73% for in-house lawyers. The way in-house lawyers presently use generative AI largely depends on prompts given to platforms such as ChatGPT. According to the report, for example, lawyers are largely using generative AI to research (66%), brief documents (59%) and perform document analysis (47%).

The usages, at present, are based on productivity and increasing efficiency, which explains the comparative enthusiasm around in-house lawyers and AI. The tech helps in-house lawyers to find quicker and more effective legal solutions, at a pace that’s difficult to ignore, as highlighted by Smith: ‘With access to the right data and training, the technology will be able to answer legal questions with game-changing speed and accuracy…at a lower cost than we have seen before.’

The present stage of generative AI allows in-house lawyers to complete or automate tedious tasks. Andy Cooke, General Counsel at , says his team have been using generative AI tools to eliminate low value work, asking generative AI platforms questions such as: ‘What’s the registered address of [company]?’ Cooke’s team use generative AI to gain quick access to useful and specific information, find basic legal advice, and engage in early forms of legal research.

The tech, in its current iteration, has proved revolutionary precisely because of its ability to tick off small-scale tasks at speed – in short, it increases agility and efficiency. Many in-house lawyers use generative AI for comms, but its application exists far for beyond that. Consider the below tasks, all of which could be simplified, streamlined, and ultimately improved by the use of generative AI:

• Supporting legal research and summarising complex information
• Drafting emails, memos, checklists, presentations, and briefs
• Performing due diligence for mergers and acquisitions
• Ideating and brainstorming for company strategy
• Reviewing legal, vendor, and other invoices
• Drafting, negotiating, and analysing contracts

That’s just a handful of general tasks that generative AI can perform for in-house lawyers. But, as the AI grows more complex and sophisticated with each iteration, we will likely see more advanced and more specific forms of application. Generative AI will lead to such efficiencies that it will become more of an expectation than a luxury, with in-house teams expecting external counsel to also use the tech.

Isabel Parker, partner at Deloitte  service, spoke in  about the likely ripple effect of generative AI: ‘Corporate legal departments should be challenging their service providers on their use of AI and on the benefits that they will receive as a result.’

The simple fact is that AI has already led to a . People failing to take advantage of the tech may get left behind. Responsible use of generative AI allows in-house teams to find quick solutions, make better and more informed decisions, and drastically increase outputs, affording companies effectively employing the tech a significant competitive advantage.