Extract from Petra Pasternak’s article “Why Metrics Matter More Than Ever: Proving Legal’s Value in the Age of GenAI”
Corporate law departments have long been perceived as “cost centers,” but generative AI may be an opportunity to change that. A new industry report shows that the new technology – which is being adopted by legal professionals at a rapid pace – can help teams make a stronger case as true strategic partners to their organizations.
To make inroads, however, legal professionals will need to invest in measuring the right type of performance.
The report from Everlaw and the Association of Corporate Counsel, The Role of GenAI in Proving Corporate Law Department Value, highlights a fundamental gap in how teams measure and report their true business impact. Based on survey responses from 284 CLOs, GCs, and legal ops leaders, the report shows that most in-house legal teams track cost-based metrics, such as total outside counsel spend, but few capture the metrics that tie their value to outcomes. This puts them at a disadvantage when it comes to showing their contributions to what the C-suite cares most about: risk mitigation, business speed, and growth.
The report also reveals an urgency to act. Nearly all respondents believe GenAI can help them narrow this “metrics gap,” and nearly 7 in 10 plan to prioritize AI for value tracking in the next three to five years.
