A recent analysis exploring the impact of generative AI on corporate legal management highlights both its potential for significant cost savings and the potential strains it could create between in-house legal teams and external law firms.
At a recent summit convened by Lex Mundi, general counsels (GCs) convened to discuss the transformative implications of generative AI in the legal domain. While many acknowledged the efficiency gains offered by this technology in automating routine legal tasks, concerns were raised about its potential to deepen the existing trend of insourcing legal work, thus reshaping the dynamics between internal legal teams and external legal counsel.
Despite these potential tensions, generative AI presents a promising avenue for enhancing operational efficiency within legal departments. By automating tasks such as memo drafting and contract generation, it allows legal professionals to allocate their time and resources more effectively, focusing on higher-value strategic endeavors.
However, the adoption of generative AI also introduces a nuanced challenge in determining the true value of legal advice. As clients seek to optimize cost-effectiveness and law firms navigate the complexities and risks associated with this technology, there arises a need for a nuanced understanding of how to balance the efficiencies offered by AI with the enduring value of human expertise in providing strategic legal guidance.
