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Law Departments Increasingly Turn to AI to Alleviate Workload Challenges

A recent survey conducted by Harbor, in collaboration with the Corporate Legal Operations Consortium (CLOC), has highlighted a notable trend where the majority of law departments are turning to artificial intelligence (AI) to address their workload challenges. The 2024 Harbor Law Department Survey reveals that an overwhelming 83% of the departments surveyed expect a rise in demand for legal services, yet 63% identify the management of internal resources and workload as their greatest challenge.

Lauren Chung, the survey editor and strategy lead at Harbor, emphasized the pressing concerns faced by corporate legal teams today. With many departments maintaining unchanged headcounts, the growing workload is becoming increasingly unmanageable without the right technology. Lauren stated, "Department leaders are asking what value technology can deliver over the next few years — from newer AI tools to upgrades of existing systems — and how they can better support their teams."

Growing Implementation of AI Tools

The survey data reveals a marked increase in the adoption of AI within law departments. In 2024, 30% of respondents reported that they had implemented AI tools, a significant rise from 18% the previous year. Furthermore, 54% are considering deploying AI within the next one to two years, up from 40% in 2023. Among the various applications of AI, the most commonly utilized functions include contract drafting and review, document management, and legal research.

Strategies to Manage Increasing Workloads

As hiring remains largely stagnant — with the majority of departments opting to hire more lawyers rather than support staff — law departments are employing various strategies to deal with the rising volumes of legal work. Key strategies identified include:

• - Increasing workloads of existing teams (39%)
• - Optimizing current technology usage (36%)
• - Standardizing work processes (36%)
• - Investing in AI solutions (21%)

These approaches aim to enhance efficiency and productivity amid growing demands on legal departments.

Evolving Technology Landscape

The survey indicates that while the interest in new AI tools is on the rise, there's also a shift towards re-evaluating core systems. Approximately 20% of law departments are contemplating migrating their matter management and billing tools to different platforms, revealing an emerging concern over the effectiveness of traditional systems in meeting contemporary needs.

A Focus on Cost Control

Cost management has increasingly emerged as a primary challenge, with 51% of respondents indicating this concern as a top priority, up from 41% in 2023. As legal expenditure is expected to rise — with approximately 60% foreseeing an increase in overall legal costs and 65% anticipating heightened in-house legal spending — law departments are being pushed to find ways to manage expenses more effectively. Measures adopted include establishing tighter billing guidelines for outside counsel, enhancing project planning, and exploring alternative fee arrangements (AFAs).

Looking Ahead

The insights gathered from the Harbor Law Department Survey serve as a crucial resource for legal teams striving to navigate the complexities of modern legal practice. As legal operations continue to evolve, the collaboration between Harbor and CLOC aims to provide a framework for understanding trends and benchmarks across the industry, ensuring that law departments are equipped to meet the future's challenges head-on.

This year’s survey promises to generate valuable insights that will drive ongoing discussions within the legal community about the future of legal operations and the role technology will play in that evolution. For those looking to explore the extensive findings from this survey, detailed benchmarking data is available through Harbor's online platform.