Rising but Cautious: The Gradual Adoption of Generative AI in Legal

Rising but Cautious: The Gradual Adoption of Generative AI in Legal

According to an article by Thomson Reuters, legal professionals are increasingly using generative artificial intelligence (GenAI), although widespread adoption remains limited. Since the release of ChatGPT in 2022, GenAI’s potential for enhancing efficiency in tasks like document processing and data analysis has intrigued many in fields such as legal, audit, and government sectors. However, the adoption of Generative AI in legal has primarily been driven by individual initiatives rather than organizational rollouts.

A 2024 study by the Thomson Reuters Institute highlights the rising consideration of GenAI in various sectors. In corporate legal, 41% of firms are contemplating GenAI use, up from 30% in 2023. Similarly, corporate tax, accounting, and audit firms considering GenAI rose from 21% to 31% over the same period. The study, involving 1,128 respondents, indicated a cautious approach, with many workplaces still debating broader implementation.

Professionals who have adopted GenAI did so independently to improve workflows. Nearly half (47%) of respondents use or plan to use public-facing GenAI systems like ChatGPT within the next three years. Usage is higher in the tax (54%) and risk sectors (61%). Conversely, only 8% of court respondents plan to use GenAI, with 60% not considering it currently. Among GenAI users, 42% use it daily or multiple times a day, while 31% use it weekly.

GenAI applications vary by profession. In corporate legal, 88% use it for contract drafting, while 69% in tax firms use it for tax return preparation. Legal research is a top use case across law firms and government entities. Document review is a common priority across all respondent groups due to GenAI’s ability to streamline document creation, personalize content, and enhance accuracy.

Future trends indicate broader adoption of Generative AI in legal. Among current and potential users, 68% foresee wide-scale GenAI usage within three years. The development of industry-specific GenAI tools may further accelerate adoption, potentially leading to legal-specific GenAI usage surpassing public-facing tools.