In an era of unprecedented technological advancement and shifting demands within the legal industry, corporate legal departments are assessing how they might embrace innovation and prepare for the future. Wolters Kluwer’s 2023 Future Ready Lawyer Survey provides invaluable insights for corporate legal departments, highlighting key trends, opportunities, and challenges that are shaping the legal technology landscape.
Legal technology takes a central role
Clients are increasingly expecting attorneys to have the necessary technical knowledge to navigate a complex digital world. With client attrition continuing to be one of the biggest challenges to the legal industry in the next year, lawyers have an opportunity to improve the ways they use technology to elevate the service they provide, increase customer satisfaction, and drive client loyalty. This is not lost on survey respondents.
An overwhelming 87% of attorneys state that technology has improved their day-to-day work. However, there is room for growth, as only 46% believe they are fully leveraging technology, with 50% in transition and 4% feeling they are not using technology to its full potential. As client demands evolve, law firms are under pressure to enhance productivity, efficiency, and collaboration through technology, with 46% ranking this as a top priority. Both law firms and corporate legal departments (85% and 84%, respectively) anticipate greater use of technology to boost productivity.
Generative AI in law
2023 has been the year of generative AI (GenAI), with this fast-developing category a major focus of technology conversations across all industries, including legal. As recently as 2019, just over half of respondents (58%) predicted that traditional AI would have an impact on their work over the next three years. Today, an overwhelming 73% expect to integrate GenAI into their work in the next year. What's striking is the confidence with which lawyers approach this development, with 68% feeling prepared for GenAI's impact and 73% understanding how it can be applied in their work. However, there is no unanimous consensus on whether GenAI is an opportunity or a threat. Nearly half of the surveyed lawyers (43%) see it as an opportunity, while one in four (25%) perceive it as a threat, and 26% view it as both.
The human element of corporate legal
As technology continues to evolve and redefine many sectors, the legal profession is no exception. This survey underscores the pivotal role of technology in adding value to legal organizations and helping them achieve their goals. While human relationships continue to be the core of the legal profession, lawyers are increasingly recognizing how technology can make them more successful by streamlining workflows and even enhancing working relationships and collaboration.
Recruiting and retaining legal talent is emerging as a major challenge, given the evolving nature of legal work. A substantial 81% of lawyers say the ability to attract and hold onto talent is a key focus area and a reassuring 80% say they are ready to navigate these demands. Notably, 89% of lawyers emphasize the importance of technology that supports remote work. Meanwhile, the shifting legal landscape means that 78% are anticipating increased demand for specialization and a decline in generalist work. This aligns with recent reports about corporate legal departments bringing more work in-house.
Mixed results on diversity, equity, inclusion & belonging
While the survey reveals that 88% of legal professionals are satisfied with their employer's efforts to create a diverse workforce and culture, only 55% of those surveyed have formal diversity, equity, inclusion, and belonging (DEIB) policies in place. This indicates that DEIB initiatives are a work in progress for many organizations, with 22% planning to implement a formal policy in the next 12 months and 15% targeting the next few years.
The 2023 Future Ready Lawyer Survey sheds light on the dynamic and evolving nature of the legal industry. For corporate legal departments operating in this rapidly transforming landscape, staying informed about these trends – and actively responding – will be crucial for success. Download the 2023 Future Ready Lawyer Report to read the full findings.
