Information services company Wolters Kluwer released the results of its 2024 Future Ready Lawyer Survey Report, which surveyed 700 lawyers from the U.S., the U.K., Germany, the Netherlands, Belgium, France, Italy, Spain, Poland and Hungary between May 6 and May 28.
The survey found that 76% of corporate legal professionals and 68% of law firm lawyers from that pool use generative AI at least once a week, with 35% of corporate lawyers and 33% of law firm lawyers using it daily. The adoption of AI is also expected to grow, with 65% of legal professionals surveyed anticipating increased investment in AI technology over the next three years.
Ken Crutchfield, vice president and general manager of legal markets at Wolters Kluwer Legal and Regulatory U.S., said this is the sixth year the company has conducted the survey, which explores how client expectations, technology and market trends are shaping the future of the legal landscape.
Crutchfield noted that, initially, there was a gap between law firms and in-house counsel regarding expectations and preparedness for technology adoption. However, the COVID-19 pandemic accelerated the need for technology, making access to information and collaboration tools more essential.
The survey also revealed that 60% of legal professionals predict a decline in the traditional billable hour model due to the wide adoption of AI technologies. Alongside this data, 56% of surveyed legal professionals said they felt well-prepared to adapt their business practices, service offerings, workflows and pricing models in response to AI implementation.
Looking ahead, both law firms and legal departments anticipate a competitive talent war over the next three years, with 73% of respondents identifying recruitment and retention as top concerns. However, 80% believe their organizations are well-prepared to meet this challenge.
When it comes to attracting talent, the survey identified three key factors: 81% of respondents prioritize work-life balance, 79% expect competitive compensation and 79% value professional development and training. Law firms, however, were seen as less likely than legal departments to offer competitive pay — 74% versus 81%, respectively.
However, Crutchfield pointed out that the career path in large law firms typically follows an "up or out" model, where lawyers either advance to partner, move laterally or transition to in-house roles. He added that by the time lawyers choose to go in-house, their career expectations often change.
The survey also revealed that employers at corporate legal departments place a greater emphasis on evaluating technological expertise in potential hires compared to law firms, with 78% of corporate legal departments considering it an important attribute, compared to 67% of law firms.
Regarding remote work, the survey showed a majority of respondents, 73%, reported that their staff is required to work in the office four or more days per week, with corporate legal departments leading this trend at 77% compared to 69% in law firms.
"The next generation of talent coming out of law schools is probably going to be learning more about how to use and delegate tasks, and come into practice with virtual assistants that are GenAI-related to help them do some of the work," Crutchfield added. "Firms that figure out how to leverage this, and as law schools crack that code, I think it could create a very interesting dynamic in terms of how one attracts legal talent in the future."
In addition to technological skills, training in environmental, social, and governance expertise also remains crucial for legal professionals due to rising demands for related legal services. The 2024 Future Ready Lawyer Survey found that 68% of legal professionals see increased demand for ESG-oriented legal expertise, with corporate legal departments feeling more prepared than law firms to meet this demand.
When it comes to training offerings, law firms also appear to lag behind their corporate counterparts, with 56% of corporate legal departments providing ESG training compared to just 45% of law firms.
--Editing by Michael Watanabe.
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