UNDERSTANDING LEGAL AI FROM THE INSIDE OUT
A Benchmarking Report Identifying How Corporate Legal Departments Perceive and Apply Contract Analytics
In over a decade of market research focused exclusively on professional services, Ari Kaplan Advisors has emphasized qualitative interviews over quantitative survey responses to move beyond isolated statistics. This report reflects 30-40 hours of interviews with those making or influencing the decisions associated with Contract Analytics in corporate law departments to provide extensive breadth and depth to the key issues associated with the evolution of the general counsel’s office.
Although the Contract Analytics market is in an early stage, the fact that more than a third of the participants are already using Contract Analytics and half expect their spending to increase next year reflects the strength of this sector. To understand the motivations of both groups, we intentionally asked a cross-section of users and non-users for their views in an effort to provide a balanced perspective, as well as an informed outlook. The impressions of the participants convey a strong interest in Contract Analytics tempered by the current realities of implementation.
91% of the respondents who use Contract Analytics identified risk and sourcing/contract management as the functions that are most likely to apply this technology to their work, followed by compliance, the business units, and procurement at 82%. The law department is generally driving the use of Contract Analytics. In fact, the legal team in every organization represented in this study exercises some influence over the adoption and deployment of this technology.