Explore Legal.io

For Clients
Legal.io company logo
Hire Talent
Find the best fit for any legal role
For Members
Jobs
The best legal jobs, updated daily
Salaries
Benchmark compensation for any legal role
Learn
Learn and grow with our community
Events
Connect with peers at exclusive events
Apps
Tools to streamline legal work
Advertise on Legal.io
Post a job for free
Reach more qualified applicants quickly
Advertise with Us
Reach a targeted audience

For Clients

Hire Talent
Legal.io company logo
Solutions
Find the best fit for any legal role
New Hire
Get highly qualified candidates in days
Popular Roles
Data & Tools
Budget Calculator
Plan and manage your legal budget
Salary Insights
Compensation data for legal roles
Vendor Directory
The ultimate list of legal tech tools

Generative AI in Legal: Study Predicts Growing Adoption and Impact

A new study by IDC predicts continued growth in the use of generative AI by legal professionals, with 69% of study respondents reporting they expect their use to increase over the next two years.

  • 69% of legal professionals expect their use of generative AI to grow over the next two years.

  • Document review is projected to become the leading application of generative AI in the legal field.

  • Concerns about hallucinations remain low, despite the potential risks.

Generative AI is becoming an integral tool for legal professionals worldwide, according to the Generative AI in Legal 2024 study by research analyst firm International Data Corporation (IDC), commissioned by Relativity. 

According to a Law.com report, the study surveyed attorneys, paralegals, legal IT staff, and operations professionals in several countries, including the U.S., U.K., and Canada.

  • The findings reveal that half of legal professionals increased their use of AI in the past two years, with only 3% reporting a decline. 

  • Of those using AI, 48% reported incorporating generative AI into their daily workflows, particularly for legal research and contract analysis.

Document Review Leads the Future

Document review is poised to become the dominant use of generative AI in the legal industry.

  • While 64% of respondents said they plan to adopt generative AI for document review within the next year, that figure jumps to 93% within five years.

  • Document review also earned the highest trust ratings, with 89% of respondents reporting comfort with using generative AI for this task. 

Legal Roles and Firms Drive Adoption

  • Paralegals and legal operations professionals are currently leading generative AI adoption, with over half reporting active use. 

  • Lawyers follow closely at 47%, and legal IT professionals trail at 41%.

Law firms are the most frequent users of generative AI, with 51% reporting active use, compared to 41% of corporate legal departments and 39% of government entities. 

However, respondents from government and corporate organizations not yet using AI said they plan to adopt it within the year, indicating rapid growth across all sectors.

Automation and Cost Savings Top Priorities

Automation of basic tasks is the leading reason for generative AI use across regions, followed by cost savings. However, regional differences emerge in how legal professionals prioritize AI applications:

  • APAC respondents showed high interest in using AI for data privacy compliance.

  • European participants expressed greater concern about data bias and the explainability of AI results.

  • North American respondents were more focused on mitigating harmful content.

Despite these differences, the overall enthusiasm for generative AI’s potential remains strong.

Concerns About Hallucinations Are Minimal

Publicized cases of AI-generated hallucinations, such as errors in legal research, have not significantly deterred adoption. 

The study found that hallucinations are among the least concerning risks for respondents.

Celia Perez, general counsel at FreightCar America, noted a possible overconfidence among some lawyers. “There’s almost a reactive instead of proactive approach,” she said during a webinar analyzing the study. While hallucinations can be addressed, she emphasized the need for ongoing vigilance.

The Debate Over the Billable Hour

Generative AI’s role in law firms relying on billable hours sparked differing opinions among experts. 

  • Fiona Campbell of Fieldfisher argued that generative AI improves efficiency and frees up time for strategic work. 

  • Conversely, IDC’s Ryan O’Leary suggested the billable hour model might reduce incentives for widespread AI adoption compared to task-based billing structures.

Still, both agreed on the transformative impact of generative AI. Perez summed it up: “I think gen AI has the potential to fundamentally transform the provision of legal services as we know it. But I don’t think gen AI is going displace lawyers or legal service professionals. It’s simply going to change the nature of how we’re trained and how we work and hopefully impact businesses and the world for the better.”

Legal.io Logo
Welcome to Legal.io

Connect with peers, level up skills, and find jobs at the world's best in-house legal departments

More from Legal.io

Net Neutrality on the Brink: Court Decision Plunges Internet Freedom into Uncertainty

A U.S. appeals court has temporarily halted the FCC's reinstatement of net neutrality rules until August 5, 2024, following a challenge from ISPs and trade groups.

Net Neutrality on the Brink: Court Decision Plunges Internet Freedom into Uncertainty
GovernmentInternet
ExxonMobil Announces Legal Leadership Transition

ExxonMobil announced Craig Morford, Vice President, General Counsel, and Secretary, will retire on July 1, 2024, and will be succeeded by Jeff Taylor, who brings extensive legal and corporate governance experience.

ExxonMobil Announces Legal Leadership Transition
CareerGeneral Counsel
Intermittent Employees and I-9 Issues

Occasionally, a company requires an intermittent employee to complete a certain project or goal.

Intermittent Employees and I-9 Issues
Immigration
Female Equity Partners in the 10 Largest US Law Firms

A look at the percentage of female equity partners in the 10 largest U.S. law firms.

Female Equity Partners in the 10 Largest US Law Firms
Law FirmsDiversity and Inclusion
Coinbase Takes SEC to Court Over Stalled Digital Asset Regulations

Coinbase requested clear guidelines on the regulation of digital assets, the agency responded that the current laws and regulations are adequate.

Coinbase Takes SEC to Court Over Stalled Digital Asset Regulations
TechnologyBanking and Finance
Big Law Down on Summer Associates But Increasing Partner Recruitment

Law firms are cutting back on summer associate hires, while boosting lateral partner recruitment to expand transactional services and capitalize on an economic rebound.

Big Law Down on Summer Associates But Increasing Partner Recruitment
Hiring
ClaimClam and Class Action Settlements

The service is causing controversy in various class actions suits.

ClaimClam and Class Action Settlements
TechnologyLitigation
Major Changes to State Bar Exams Continue

California, Arizona and Florida move foward with innovative updates to their state bar exams.

Major Changes to State Bar Exams Continue
Career
Legal.io Logo
Welcome to Legal.io

Connect with peers, level up your skills, and find jobs at the world's best in-house legal departments