Extract from Epiq’s article “The Role of Generative AI With Complex Contracting: Exciting Possibilities Emerge”
Generative AI use cases continue to expand as the technology matures and adoption increases. In the legal industry, there is increasing intrigue over how it can assist with contract drafting and negotiation. In the Wolters Kluwer 2023 Future Ready Lawyer Survey Report, 73% of lawyers surveyed from both legal departments and law firms expected to integrate generative AI into legal work within a year. According to the report, lawyers are optimistic on generative AI’s ability to automate routine legal operations, including contract drafting and complete a large number of tasks quickly. This is a new avenue legal teams can explore to help close recurrent gaps with contract drafting and negotiation such as the inability to integrate with an organization’s CRM, financial system, and other databases or drafting clauses in the appropriate tone and voice.
For years, lawyers have approached complex contracts with a more manually focused approach. Referencing old contracts, accessing cause libraries, and discussing with colleagues has been standard practice when drafting and negotiating a new deal. While this has worked, there may be a better way that can yield the same results (or better) in a fraction of the time. Generative AI solutions have entered the chat. Let’s take a look at what questions to ask before investing in next generation contracting tools and the potential benefits.
Justifying Generative AI Strategy and Spend
According to the Thomson Reuters 2023 Legal Department Operations Index, there was a 53% increase in corporate legal departments using legal technology tools. The report noted “This increased use of technology no doubt serves to increase the productivity and output of the department’s attorneys, a vital outcome given other realities the department may be facing.” It is not surprising that when asked to rank components of cost-control strategy for the following year, efficient processes (83%) and technology/automation (57%) were in the top four responses. Using generative AI on contracts is another opportunity that aligns with these findings.
