Extract from Ella Sherman’s article “In-House Teams Are Struggling to Measure Impact of Gen AI”
While many corporate legal departments have been able to track their spending, few are tracking their outcome-based performance metrics, according to a report from Everlaw and the Association of Corporate Counsel (ACC) released Monday.
The report, “The Role of Generative AI in Proving Corporate Law Department Value,” which surveyed 284 legal operations professionals and chief legal officers, found that 83% of legal departments are tracking financial metrics like outside counsel spend, 54% are tracking billing rates and fee structures, and 52% are tracking internal legal spend.
The lack of outcome-based performance metrics makes it more difficult for in-house teams to track the impact of their growing gen AI adoption. Only 28% of respondents track time to resolution for legal matters,12% track outside counsel performance metrics, and 12% track technology adoption return on investment.
“Overall, I think that what we’re seeing is that general counsel is deriving benefits from the use of AI in running the law department and the metrics associated with that are lagging behind,” Chuck Kellner, a senior strategic discovery advisor at Everlaw, told Legaltech News.
