Terri Mottershead (pictured) is the executive director of the Centre for Legal Innovation at The College of Law – and recently held a number of roundtables to delve into the impact generative AI has on legal practice.

Held between March and July this year across Australia and New Zealand, these discussions included 122 thought leaders, including allied legal professionals, tech developers, legal consultants, legal educators, and managers.

In the 2024 Legal GenAI Roundtables Report, Mottershead explored the insights from the roundtable discussions and unpacked key findings.

“We’re interested in and engaging with GenAI, but it’s going to be a long-ish journey. And, what got us here, cannot get us where we need to go! Most of us have started to explore how this amazing, scary and incredible tech could be THE enabler for systemic transformation of the legal ecosystem but, we don’t know exactly how right now and, there is still a significant number in our industry who are questioning ‘the why’,” Mottershead said in the report.

“Despite the scepticism, there are also many in the legal industry who have a new vision for the future. They can see the world changing around them and that AI, GenAI, and, in time, general AI is inevitable. They get that there’s a balance to be struck between waiting too long and not long enough. And, they have identified THE big issue for the legal industry ... how we shift our collective mindset and inherited legacy of watch, wait and react – to engage, collaborate, and predict ... quickly enough.”

In terms of the key takeaways from the roundtables, held in Auckland, Brisbane, Melbourne, Sydney, and Perth, participants, according to the report, were “optimistic about the potential of GenAI but highlighted key areas requiring attention, including skills development, change management, and managing client expectations”.

There were also significant knowledge gaps between personal and organisational use of GenAI, with many participants experimenting with emerging tech on a personal level, yet not receiving any formal training or resources from their organisations.

VIEW ALL

“Participants called for more structured education on GenAI, particularly for law students and junior lawyers. Questions were raised about whether universities are adequately preparing graduates for this tech-driven landscape. Other concerns included data governance, security, confidentiality, and regulatory compliance, and smaller firms potentially facing more challenges due to limited resources,” the report said.

The report also noted various challenges and concerns around the adoption of GenAI, including security, confidentiality and regulatory compliance.

“There was some concern expressed around redundancy and job security, particularly among junior staff. Combined with limited time for training and exploring new tools creating potential resistance to change. Data governance and regulatory concerns have diminished trust, contributing to hesitancy in widespread adoption,” the report said.

“With the fast pace of technological change, there is concern about how to effectively manage both the technology itself and the people who use it to avoid change fatigue.”

While some organisations are focusing on client-facing applications of GenAI, including summarising emails and legal research, use cases for GenAI in the profession also include intake forms, triage, administrative work, contract reviews, and marketing.

In line with these use cases, GenAI is expected to “disrupt traditional law firm business models” across the profession, with more firms using alternative fee arrangements and value-based pricing. However, the report also found that clients and firms were divided on how GenAI should be reflected in billing.

“Some expect cost reductions, while others anticipate GenAI to be factored into pricing. Law firms argue that expertise and intellectual property should still be charged accordingly,” the report said.

“Introducing GenAI requires a structured change management approach. Participants emphasised the need to focus on value creation, with clear communication and training programs to ensure successful adoption. Understanding the opportunities presented by GenAI is becoming a fundamental business skill for all employees.”

Moving forward, the need for collaboration remains high, as GenAI “presents a paradigm shift from the traditional approach of identifying a specific problem first to a ‘solution-first’ mindset”.

This, according to the report, requires the exploration of GenAI as opposed to seeking it out to solve specific issues. Most roundtable participants said they were optimistic about the future of law and believe GenAI will promote collaboration and transform legal services.

“As GenAI becomes integral to legal practice, the role of human oversight will remain critical, though it will evolve. Participants are excited about the potential for lawyers to focus more on strategic work as routine tasks are automated,” the report said.

More to come.