Survey Says: GenAI Usage and Firm Financials Were Both Up in Q3 2024

It’s hard to believe it’s already late November (time flies!). I’ve seen numerous surveys and reports regarding Q3 2024, and the findings are noteworthy. 

Overall, the surveys depict a largely optimistic outlook for the legal sector as it approaches the end of the year, with an uptick in GenAI usage and improved law firm finances. Naturally, a few puzzling results were also included. 

Here’s a summary of some of the surveys and outcomes that interested me.

  1. Year-End Overview: As November approaches, year-end summaries and reports for Q3 2024 indicate a positive outlook for the legal sector, particularly in GenAI adoption and law firm financial health.
  1. Increase in AI Usage: A study by IDC reveals that 50% of legal experts report increased AI usage, while 43% see no change. Notable points include:

   – Security considerations rank third when selecting GenAI providers.

   – Legal and IT departments equally influence AI procurement.

   – Higher usage of GenAI among law firms billing by the hour.

3. Generational Trends in AI Use:

   – Legal operations staff and paralegals use GenAI more than attorneys.

   – Larger firms show a higher increase in GenAI usage, particularly in document review tasks.

4. Law Firm Financial Growth: The Thomson Reuters Institute’s Financial Index shows significant growth for law firms, with the second-highest score recorded. Key growth areas include increasing demand across various practice areas and improved productivity.

5. Awareness of AI Usage: A survey indicated that only 46.67% of law firms confirmed using generative AI, while 50% are considering it. Attorneys’ awareness of the technology they are using is concerning, suggesting a disconnect in understanding the implementation of AI.

6. Employee Independence: The report highlights a potential issue with employees acting independently in utilising AI technologies without firm-wide awareness.

Source: Legal Technology Hub

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