Sixty-one percent of lawyers say they are now using generative AI in their work, according to a new report out today (2 September) from LexisNexis, but two-thirds say slow organisational cultures risk undermining progress. Despite headline adoption clearly escalating, it is important to note that 11% of lawyers said they are using GenAI heavily for day-to-day work and that number drops to 7% at large and medium-sized firms.
The AI Culture Clash report finds that while use of GenAI is surging, confidence and culture are lagging. Only 17% of lawyers say that AI is fully embedded in strategy and operations, with two-thirds reporting their organisation’s AI culture is slow or non-existent. The most common response in describing their organisation’s AI culture was ‘we’re experimenting but progress is slow.’ 19% reported interest but little investment.
Among those already using AI, interestingly around half say they use general AI tools (49%) and just over half (51%) say they use legal AI tools. Lexis says that lawyers at private practice law firms are more inclined to use legal AI tools (58%), particularly those from medium-sized firms (70%).
Among those who say they use GenAI heavily, it is no surprise that in-house counsel lead the way.
The report has a significant number of findings around how lawyers are using the time that is being freed up by the use of AI, but given the lack of heavy usage of AI, it is not clear how those time savings are yet arising.
There is an increase in the number of lawyers who believe that GenAI will change how law firms bill – almost half (47%) of lawyers now agree AI will transform how firms bill for legal services, up from 40% earlier this year. The top alternative billing models in place are fixed fee by matter (69%); retainers (44%) and flat fees (31%). When asked which novel pricing models they’d be interested in exploring, the top responses were ‘dynamic pricing based on risk or complexity’ and ‘bundled services combining AI tools and expert reviews’, both at 32%.
New pricing models will emerge along with new products, Tony Randle, partner, client technology & service improvement at Shoosmiths, said, commenting: “Firms are also beginning to offer clients self-serve products and managed service solutions that combine tech solutions with related legal support.
“We expect more fixed, portfolio, and subscription pricing, reflecting both client demand for predictability and AI’s role in reshaping service delivery to improve outcomes and value.”
To read the report in full see: https://www.lexisnexis.co.uk/insights/the-ai-culture-clash/index.html