The Future Is Now: Insights And Observations From Wolters Kluwer’s 5th Annual Future Ready Lawyer Survey
Generative AI presents opportunities, but the technology also presents threats.
A major U.S. company had a longstanding ad campaign for its insurance products with the tag line “Where the future is now.” MetLife, or Metropolitan Life as it was known in the 1970s, would run ads showing how fast time flies and how important it is to prepare for the future of one’s family. Their television ads were both nostalgic of the past and inspiring of the future, set to a jingle called “Where the future is now” that encouraged viewers to consider insurance products as part of preparing for the future.
Earlier this month, Wolters Kluwer released its fifth annual “Future Ready Lawyer Survey” — and it brings back memories of those old commercials for me.
The 2023 “Wolters Kluwer Future Ready Lawyer Survey” includes insights from 700 lawyers in law firms, corporate legal departments, and business services firms across the U.S and Europe. The survey examines how client expectations, technology, and market trends are affecting the future of the legal profession and how legal organizations are prepared to address these challenges.
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It doesn’t seem possible that just four years ago there was still an active debate on whether technology had a significant role in the future of law. At that time, 69% of lawyers surveyed felt it was important to understand which technologies deliver the highest value. Fewer than 24% said they understood transformational technologies such as AI. And only 53% of lawyers indicated their organization’s technology investment would increase over a three-year period.
The Future Is Now
Fast forward to the present: 87% of lawyers surveyed this year feel that technology has improved their work. According to 91% of lawyers, it’s important to have access to the latest tools and technology. And nearly 85% of lawyers at firms and inside law departments expect to make greater use of technology to improve productivity.
Indeed, the “future is now” when it comes to the role of technology use by lawyers.
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Generative AI Is The Proof Point
Perhaps Generative AI is the proof point that has driven this consensus around the impact of technology. Just a year ago, ChatGPT 3.5 Turbo burst onto the scene and, before you knew it, everyone around the world was aware of this new technology and its potential. Lawyers saw the potential opportunity that Generative AI presented, and larger firms began to experiment with the technology. Law departments developed a keen interest in their own operations and in the potential use of the technology by outside counsel. In fact, 97% of legal departments say they will require prospective law firms to describe how they are using technology to be more productive and efficient. The push toward nearly universal interest in how work gets done by law firms is a long-term trend, but the potential of Generative AI has likely accelerated that trend.
Generative AI presents opportunities, but the technology also presents threats. While 79% of lawyers see opportunity in the technology, 51% see the technology as presenting some kind of threat. A mere 25% see the technology as a threat only. Despite concerns, the potential downsides of the technology appear to seem manageable, as 73% of lawyers expect to integrate Generative AI into their legal work in the next 12 months.
Talent Remains A Key Challenge For Firms
Recruiting and retaining talent have been a challenge for firms and law departments — and this year’s report suggests that the importance of recruiting and retaining talent is just as important as ever.
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Of surveyed lawyers, 81% indicated the ability to recruit and retain talent will have an impact in the next one to three years, up from 75% in 2022. Also, 81% of lawyers surveyed across firms and law departments see the ability to recruit and retain talent as a key area of focus.
What is interesting is the potential changes in demand for the types of talent that may need to be recruited and retained. The pandemic shifted many organizations to a hybrid model where workers have the ability to conduct at least part of their work responsibilities outside of the office. Recruitment strategies and skills required of new attorneys may need to evolve to accommodate these changes. Understanding technology and how to make effective use of it will likely be an important consideration in hiring and retaining talent. Ensuring how to effectively prompt Generative AI technologies is a great example of new skills and training that future lawyers will need.
At the same time, organizations will need to recognize the need to attract talent that can go deeper in specific areas. Most lawyers expect an increased demand for specialization and a decline in generalist work. Three of four lawyers are prepared to offer great specialization, and 78% of law firm attorneys felt their organizations are ready to address increasing client demand for greater specialization.
Interestingly, 88% of lawyers seem satisfied with their employer’s performance on creating a diverse workforce and inclusive culture, but many law firms and CLDs have yet to establish formal Diversity, Equity, Inclusion, and Belonging (DEIB) policies. According to the American Bar Association, 55.3% of law school students were women in 2021. Yet, as of 2022, only 38% of all attorneys in law firms are women.
Given the industry’s longstanding challenges with recruiting and retaining talent, developing DEIB policies and a DEIB recruitment strategy may be integral to achieving talent goals. As part of those policies, it will be important to keep a pulse on the perceptions and engagement of new hires to ensure they see equal opportunities and the ability to belong. I must say that 88% satisfaction with creating a diverse workforce and inclusive culture feels a little high to me. DEIB strategies must ensure that any potential blind spots can be exposed.
Wolters Kluwer’s 2023 “Future Ready Lawyer Survey” provides great insights into legal professionals’ views and perceptions of the current state of law and where the practice of law is likely going in the next three years. The pace of change continues to accelerate. The role of technology is increasing, with Generative AI being the proof point. Matching technology with the right talent is becoming more important than ever. As MetLife encouraged families to plan for the future, lawyers should consider the importance of preparing for what is to come — the future of law is indeed now!
Ken Crutchfield is Vice President and General Manager of Legal Markets at Wolters Kluwer Legal & Regulatory U.S., a leading provider of information, business intelligence, regulatory and legal workflow solutions. Ken has more than three decades of experience as a leader in information and software solutions across industries. He can be reached at ken.crutchfield@wolterskluwer.com.
