With 56% of corporate legal professionals expecting technology needs to increase,
Survey points to an emerging partner for legal teams: the CIO
LAS VEGAS, October 24, 2022 /PRNewswire/ — Everlawthe cloud-native platform for investigations and litigation, in partnership with the Association of Corporate Counsel (ACC), released a new report today showing that nearly half of corporate counsel (47%) believe the adoption of Technologies is the most important non-legal skill needed for the next generation of in-house lawyers.
The state of corporate litigation today Report was issued today at the ACC Annual Meeting 2022, the world’s largest meeting of corporate lawyers. More than 200 in-house attorneys and legal experts were interviewed about their department’s approach to litigation, technology requirements, criteria for selecting outside attorneys, and top litigation costs.
Key findings include:
- Outsourcing more work in-house is the most commonly cited strategy to contain process costs, used by 59% of respondents, with the energy, healthcare and insurance industries outsourcing the most work in-house.
- The ability to adopt new technology is the most important non-legal skill needed for the next generation of in-house counsel
- Almost half of all legal departments report spending more than $400 per hour for outside counsel, while now exceeding the average cost per matter $100,000 and nearly a third (31%) of departments reported an increased number of litigations.
- Almost half (46%) say the average length of a typical litigation is increasing, with the pharmaceutical and biotechnology, insurance and construction sectors seeing the largest increases.
Technology is valued and desired in-house, but still underused
The majority (85%) said in-house counsel need to understand how new technology is affecting legal work, and 56% expect their department’s technology needs to increase in a year’s time. However, a company’s use of innovative technologies was the least common selection criterion when it came to external consulting, with expertise and industry knowledge emerging as the most common. Most respondents (56%) think there needs to be more collaboration between legal and the CIO, but only 4% said their legal team works most closely with their CIO.
“In one of the more surprising results of the survey, technical proficiency was ranked as the top next-gen skill for corporate counsel,” he said Blake Garcia, Senior Director of Business Intelligence at ACC. “Large-scale implementation of Legal Technology was slower than expected due to a number of factors. However, we continue to see evidence like this that legal innovation continues to gain momentum by increasing efficiencies and reducing costs – impacting legal department workflows and hiring processes for years to come.”
It was nice proven that spending on technology saves a lot in the long run, but legal professionals are still not using technology to fully reduce costs. Only 12% of respondents ranked the use of technology or artificial intelligence as one of their top three ways to save money, with doing work in-house as the top cost-saving strategy on the list. However, corporate legal departments report a strong desire to expand their use of technology. For example, 65% of respondents say they would like to use automated personal data redaction tools, while 39% say they would like to use legal hold, early case assessment and concept clustering technology in their litigation workflows.
“Bringing legal work in-house is an inherently technological endeavor,” he said Chuck Waiter, Strategic Discovery Advisor at Everlaw. “And since total cost is the most important factor used to decide whether to settle a matter, reducing costs by outsourcing work internally, aided by technology, can have a significant impact on a company’s litigation.”
litigation is prolonged
Another compelling feature driving technology adoption is increasing length of litigation, with 46% reporting an increase in typical litigation. As the amount of discoverable data skyrockets, in-house legal teams need advanced technology to help them sort through documents that used to be kept in filing cabinets but now every email, Slack, text, or social media email sent encapsulate message. Acting quickly can be key to both controlling costs and improving outcomes, especially in long-running, high-stakes litigation. Class action lawsuits last the longest, according to 75% of respondents, who reported an average duration of at least two years, with 44% reporting an average duration of at least three years.
When it comes to the type of litigation legal teams face, employment and labor issues ranked most frequently, followed by breach of contract. About a quarter (27%) reported an increase in regulatory matters and 22% said the number of internal investigations increased compared to the previous year.
Other findings from the report include:
- Breach of contract and employment and labor law are the most common disputes faced by legal departments
- The top reason for hiring outside legal counsel is primarily a firm’s expertise in dealing with factual, legal and geographic requirements (88%), followed by the ability to complement the capacity of the firm’s team (50%).
- The most commonly cited risk was monetary and reputational risk to the organization (38%), followed by the unpredictability of litigation (18%), the unpredictability of litigation costs (18%), and staffing limitations in managing outside counsel (12%). .
Click here to read the full report,”The state of corporate litigation today.”
Find out more in our blog entry.
Visit Everlaw at booth #303 at the ACC Annual Meeting this week
Methodology: The survey questionnaire was offered via an online survey platform. Personalized survey links were emailed to the target audience, allowing participants to save their responses and complete the questionnaire in more than one session if needed. The poll opened on June 22, 2022and closed July 15, 2022. We targeted ACC members in The United States. A total of 202 in-house legal advisors and legal experts took part in the survey.
The Association of Corporate Counsel (ACC) is a global legal association promoting the common professional and business interests of corporate counsel working for corporations, associations and other organizations information, education, Networkingand advocacy. With more than 45,000 members in 85 countries employed by over 10,000 organizations, ACC connects its members with the people and resources needed for personal and professional growth. By Inhouse Counsel, for Inhouse Counsel.® For more information, see www.acc.com and continue to follow ACC LinkedIn, Twitterand Facebook.
Everlaw helps legal teams navigate the increasingly complex e-discovery landscape to find a more direct path to the truth. Trusted by Fortune 100 corporate attorneys, 91 of the Am Law 200 and all 50 Attorneys General, Everlaw’s combination of intuitive experience, advanced technology and partnership with clients empowers organizations to address the most pressing technology challenges and improve their discovery transform approach and litigation in process. Founded in 2010 and based in Oakland, CaliforniaEverlaw is funded by top-tier investors including Andreessen Horowitz, CapitalG, HIG Growth Partners, K9 Ventures, Menlo Ventures and TPG Growth.