legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Increasing Adoption of AI in legal Teams

In the past year, there has been a significant surge in the adoption of artificial intelligence (AI) among in-house legal teams, according to new research. This shift has marked a transformative moment for legal practices as 40% of in-house lawyers have begun utilizing AI for the very first time to effectively manage litigation.

Rising Involvement in Disputes

The volume of in-house lawyers engaged in disputes in England and Wales has notably increased, rising from under two-thirds to over three-quarters in recent observations. Researchers affiliated with the national firm Shoosmiths reported that “many UK businesses took the plunge and implemented AI for litigation management for the first time in the past year.”

Early Adoption for Document Discovery

Historically, AI has already gained traction, with 70% of in-house legal professionals using it for document discovery and e-disclosure tasks. Furthermore, 41% of these professionals adopted AI within the last year alone. This expanding utilization demonstrates a growing recognition of AI’s potential to streamline processes and enhance efficiency within legal departments.

Diverse Applications of AI in legal Tasks

When it comes to other critical legal responsibilities—such as identifying litigation risks, assessing claims, and scanning the legal landscape—approximately one-third of the respondents reported the application of AI, with a significant portion of those involved having integrated these systems over the past 12 months. This illustrates a broader trend of technology adoption within the legal sector.

AI as a Litigation Risk

Interestingly, AI has emerged as a prominent concern for company boards, being highlighted as a significant source of litigation risk. It outpaces other concerns such as regulation, employment law, competition, and environmental issues. In light of this, Shoosmiths compiled their findings from conversations with over 360 general counsel and senior in-house lawyers from large UK-based firms, each generating annual revenues exceeding £100 million, as presented in their report titled Litigation Risk 2025.

Anticipating Future Disputes

The proportion of legal professionals involved in disputes in England and Wales has surged from 62% in 2023 to an anticipated 76% by 2024, indicating that this upward trend is likely to persist. Notably, three-quarters of in-house lawyers predict they will engage in disputes within the next year, reinforcing the growing volume of legal confrontations.

Regulatory and Competition Disputes

In the past year, half of the surveyed legal teams reported their firms faced at least one regulatory dispute, a rise from 36% in 2023. Additionally, 42% were involved in competition disputes, an increase from just 24%. The prevalence of regulatory disputes particularly affected the financial services sector, where 58% reported engagement in such conflicts.

Rising Intellectual Property Disputes

Moreover, almost 60% of in-house legal teams foresee an increase in intellectual property disputes over the next three years. This anticipated rise outstrips concerns in other dispute areas, including group litigation (55%), AI-related disputes (54%), and employment disputes (52%).

Budget Constraints in Litigation

Despite this uptick in litigation activities, only 45% of in-house legal departments have increased their budgets allocated for dispute resolution. The average cost of a claim now exceeds £1 million, estimating the expenses associated with individual claims to hover around the £600,000 mark or higher.

The overarching concern in determining whether to pursue a claim revolves around cost, cited by 66% of respondents. Following this factor are concerns regarding the expected duration of litigation and potential reputational damage. It’s interesting to note that 46% of respondents expressed they may consider litigation funding to alleviate some of the financial burdens, a decrease from the 56% recorded last year.

Stagnation in Litigation Risk Management

Despite the increasing penetration of AI in the legal sector, the level of adoption of proactive measures to manage litigation risks has shown little to no growth since last year. Most popular tools identified include allocating time and resources for litigation risk analysis (67%), investing in litigation risk analysis technology (57%), and horizon scanning for upcoming legal changes (52%).

Expert Insight from Alex Bishop

Alex Bishop, the head of dispute resolution and litigation at Shoosmiths, underscores the importance of recognizing that a considerable amount of litigation stems from common commercial disputes or breaches of contract. She emphasizes, “This is likely to remain the case for some time. It is important that boards do not lose sight of that just because the new and emerging risks are occupying a lot of brain power.”

How AI legalese decoder Can Help

In navigating this complex legal landscape, the AI legalese decoder stands out as a vital resource for firms grappling with the intricacies of legal jargon and documentation. This innovative tool can assist legal teams in translating complex legal language into easily understandable terms, helping in-house lawyers make well-informed decisions with ease. As AI continues to reshape the legal profession, tools like the AI legalese decoder can streamline litigation processes, mitigate the overwhelming aspects of legal language, and enhance overall efficiency, enabling legal professionals to focus more on strategic aspects rather than merely deciphering legal text. By bridging the gap between complex legal terminologies and practical understanding, this technology becomes indispensable for in-house legal teams facing increasing demands in dispute management.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link