Survey: General Counsel Expect Significant Increase in Technology Investments and Artificial Intelligence Adoption

Rhea-AI Summary

FTI Consulting, Inc. (NYSE: FCN) and Relativity released findings from The General Counsel Report, revealing increased focus on technology spending and new use cases in corporate legal departments. The study shows 75% of general counsel expect to use generative artificial intelligence in the near term, reflecting a growing emphasis on technical acuity and innovation.

Second Installment of The General Counsel Report from FTI Consulting and Relativity Finds Growth Across Technology Spending and New Use Cases

WASHINGTON, Jan. 31, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) and global legal technology company Relativity today announced findings from part two of The General Counsel Report. The newly released study found that general counsel are placing more emphasis on developing technical acuity and embracing innovation than in previous years, and 75% expect to use generative artificial intelligence in the legal function in the near term.

This edition of the report, which is based on a detailed survey and one-on-one interviews between Ari Kaplan and chief legal officers at large corporations in every major region around the world, examined attitudes and technology implementation plans within corporate legal departments. When asked about their comfort level with generative AI across a range of legal use cases, most general counsel expressed a high degree of support — across all use cases discussed, participants rated their comfort level at a weighted average of 3.2 based on a scale of one (not comfortable) to five (extremely comfortable).

In addition to growing openness toward AI use, 77% of respondents said they have plans to make new technology investments this year, a more than 20-point increase over the previous year’s report. Among those who didn’t have budget earmarked to purchase new tools, some were looking for ways to optimize and enhance existing technology.

“Unsurprisingly, AI was a major topic of discussion in this year’s general counsel report, but more than the excitement around technology innovation was the sense that there has been a distinct shift in the legal department’s attitude toward technology,” said Sophie Ross, Global Chief Executive Officer of FTI Technology. “While lawyers will always maintain a healthy degree of caution, legal department leaders are more focused than ever before on trying new technologies, investing in tools, automating their work and embracing the technological changes that will make them more effective as strategic business partners. I believe this signals a meaningful year ahead in legal tech growth, as well as traction for practical innovations in AI.”  

Key findings covered in Part Two include:

• E-discovery was one area in which general counsel indicated readiness for generative AI solutions, with 80% saying they would be comfortable (nearly one-quarter said “extremely” comfortable).
• More than two-thirds said they were comfortable with the use of AI for compliance monitoring (52% said “very” or “extremely” comfortable).
• General counsel were more open to their internal teams using AI than their outside counsel.
• Respondents emphasized that AI use cases should maintain human oversight, with one respondent saying, “I am also more likely to trust the use of [AI] by someone who is more seasoned because they have the experience to know whether it is a legitimate response. I need a higher level of human discernment when using AI.”
• Contract lifecycle management tools ranked the highest among types of technology legal departments plan to invest in during 2024.
• When asked about the role of automation and advanced technology to alleviate capacity demands and increase retention, 75% said they are considering it, an eight-point increase from the previous year’s study.
• General counsel are heavily involved in making legal technology purchasing decisions for their department, with 55% saying they handle these decisions independent of other stakeholders.
  

“In what I call the ‘TAR Effect’ — having grown over the 14 years since the Da Silva Moore v. Publicis Groupe judicial blessing of technology assisted review — e-discovery leads the way in artificial intelligence. In this year’s edition of The General Counsel Report, we asked chief legal officers their level of comfort using AI for six different legal tasks. Not surprisingly, e-discovery led the pack,” said David Horrigan, Discovery Counsel and Legal Education Director at Relativity. “We had 92% of general counsel reporting they were at least somewhat comfortable using AI in e-discovery, and over half of them were either very comfortable or extremely comfortable using AI in e-discovery.”

Part Two of The General Counsel Report 2024 is available for download here. The first installment was released in December 2023, and subsequent parts will be released in February and March 2024.

Demographics and Methodology
In July and August 2023, Ari Kaplan personally interviewed 60 leaders serving as the general counsel or chief legal officer of their organizations. Participants were from across North America, Latin America, Europe, the Middle East and Australia, and roughly half work in organizations with more than $500 million in annual revenue.

About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 8,000 employees located in 31 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $3.03 billion in revenues during fiscal year 2022. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. For more information, visit www.fticonsulting.com.

About Relativity
Relativity makes software to help users organize data, discover the truth and act on it. Its SaaS product, RelativityOne, manages large volumes of data and quickly identifies key issues during litigation and internal investigations. Relativity has more than 300,000 users in approximately 40 countries serving thousands of organizations globally primarily in legal, financial services and government sectors, including the U.S. Department of Justice and 198 of the Am Law 200. Please contact Relativity at sales@relativity.com or visit www.relativity.com for more information.

FTI Consulting, Inc.
555 12^th Street NW
Washington, DC 20004
+1.202.312.9100

Investor Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com

Media Contacts:
Ashley Allman
+1.206.369.5209
ashley.allman@fticonsulting.com

Relativity PR
pr@relativity.com

FAQ

What are the key findings from The General Counsel Report by FTI Consulting and Relativity?

The report reveals increased emphasis on technology spending and innovation in corporate legal departments, with 75% of general counsel expecting to use generative artificial intelligence in the near term.

What is the ticker symbol for FTI Consulting, Inc.?

The ticker symbol for FTI Consulting, Inc. is FCN.

What is the focus of the study conducted by FTI Consulting and Relativity?

The study focuses on attitudes and technology implementation plans within corporate legal departments, based on a detailed survey and one-on-one interviews with chief legal officers at large corporations worldwide.

What percentage of general counsel expect to use generative artificial intelligence in the near term according to the report?

75% of general counsel expect to use generative artificial intelligence in the near term, reflecting a growing emphasis on technical acuity and innovation.