The 2023 Australia: State of the Legal Market Report highlights the emergence of generative artificial intelligence (AI) as a game changer for law firms.
The use of artificial intelligence (AI) in the legal industry has made significant progress in the last decade, but generative AI represents a radical shift that blurs the line between automation and creativity.
McKinsey research suggests that generative AI could add trillions of dollars in value to the global economy, with the potential to add billions to the Australian economy.
Tech giants and startups alike are investing heavily in AI to build foundational models and develop targeted applications. In May this year, Thomson Reuters announced it will invest over $100 million annually in AI capabilities. The content-driven company has also developed a contract drafting solution powered by its legal products with Microsoft Copilot for Word. And in August, Thomson Reuters completed its acquisition of Casetext.
Firms can seize AI’s opportunities to enhance client service and grow their business. But they also need to ensure that the technologies they adopt adhere to governance requirements and regulations.
“Regardless of the pace of regulation, the rapid development of these technologies is likely to continue, and law firms will be challenged to keep pace with these changes, to the benefit of not only their own business but also that of their customers.”
2023 Australia: State of the Legal Market
Experiment with generative AI today, not tomorrow
Australian law firms and corporations are already exploring how they can incorporate generative AI into their businesses.
The Tech and the Law 2023 report shows that 69% of private practice professionals believe generative AI will improve efficiency. Over half agree it will help them better serve clients. Though most firms have no concrete plans to adopt AI, the report shows that many are experimenting with it cautiously.
The 2023 Australia: State of the Legal Market report outlined six key actions that law firms can take to prepare for generative AI in a handy infographic. This handy visual resource is designed to help you gain a deeper understanding and embrace generative AI effectively.
Here are the six ways that you as a law firm leader can prepare for generate AI:
