In-house teams struggle with AI influx

In a recent report by Dentons, the largest global law firm, legal departments are experiencing an overwhelming influx of AI-generated correspondence, including employee grievances, customer complaints, and GDPR requests. This phenomenon is creating considerable strain on in-house legal teams. The report titled “From AI Adoption to AI Advantage” stemmed from extensive interviews with senior in-house lawyers from a range of Irish and international companies, led by Dentons’ Dublin-based Technology, Media and Telecommunications partners Carlo Salizzo and David Kirton.

Most of the companies interviewed acknowledged that the main challenge lies not in reading the AI-generated correspondence but in determining which elements are significant. In response to the deluge of submissions, some in-house teams are utilising AI to manage this volume more effectively. The feedback indicated that while AI is commonly utilized for narrow, well-scoped repetitive tasks, it has not yet been granted the autonomy to handle broader legal work. Several companies underscored the importance of centralising legal data while employing a diverse array of AI tools to analyse this information.

Carlo Salizzo remarked, "This research shows that in-house legal departments are not replacing employees with AI, but they are finding ways to use AI to help staff be more productive, including using AI tools to help cope with a raft of AI-generated submissions." Furthermore, David Kirton added, “The days when governance was the exclusive territory of legal departments are over. This research shows that most companies have found that the advent of AI has meant that good governance requires the expertise of multi-disciplinary teams.”

The report also highlights notable shifts in the relationship between external counsel and in-house lawyers, with the latter investigating alternatives to the traditional billable hour. Some industry experts predict the decline of this model, while others view these alternatives as a means to deliver efficiency benefits back to clients. Additionally, the integration of AI is reshaping the client-lawyer dynamic, leading to deeper and more engaging conversations, albeit also resulting in an increase in the volume of correspondence demanding attention.