The legal industry is undergoing a seismic shift, driven by the rapid adoption of Generative AI (GenAI). According to the 17th Annual Law Department Operations Survey, conducted by The Blickstein Group in collaboration with FTI Consulting and co-sponsored by Leopard Solutions, nearly 72% of respondents believe GenAI will become an essential part of the legal profession. This signals not only the growing role of AI in legal operations but also the increasing influence of Legal Department Operations (LDO) professionals in shaping its implementation.
The Expanding Role of Legal Operations Professionals in AI Adoption
LDO professionals are playing pivotal roles in AI integration. Over half (50.8%) of respondents reported being primarily responsible for GenAI tools within their organizations, while another 33.3% exert some influence over their implementation. Beyond their legal departments, 28.1% are involved in AI decision-making across their enterprises, demonstrating the strategic importance of legal ops professionals in AI governance.
The survey highlights that the focus of GenAI adoption remains centered on enhancing legal service delivery and operational efficiency rather than the direct practice of law. The primary drivers for GenAI implementation are efficiency and performance (81.3%), followed by cost savings (42.2%). This underscores the role of legal operations in ensuring firms optimize their resources while maintaining compliance and mitigating risks.
Law Firms and GenAI: Evolving Attitudes and Adoption
The legal industry’s perspective on AI is evolving, with law firms increasingly embracing technology to improve service delivery. The survey found that 43% of respondents agree that their law firms are leveraging GenAI to deliver services more effectively, a substantial increase from 32% last year. Furthermore, 77% of organizations are now encouraging their law firms to use GenAI, compared to just 63% in the previous year. The percentage of companies outright forbidding AI use has dropped from 10% to 5%, reflecting a growing acceptance of AI-driven efficiencies.
Despite these advancements, there remains a significant gap in law firm innovation. While 37.5% of respondents believe their firms are innovative (up from 25.5% last year), 96% still prefer that firms proactively approach them with new models for service delivery.
Addressing Key Industry Challenges: How Leopard PROWESS Provides a Solution
One of the most pressing challenges identified in the survey is the difficulty in evaluating outside counsel. Only one in three legal departments has consistent metrics to assess law firms, and even fewer (25%) share these insights with their firms. This lack of transparency and communication limits opportunities for performance improvement and cost control.
Leopard PROWESS, an advanced business intelligence platform by Leopard Solutions, directly addresses these industry pain points by providing data-driven insights that enhance law firm visibility, evaluation, and business development. With access to over 5,800 law firms and their histories, PROWESS enables firms to showcase their expertise, billing structures, and competitive differentiators, ensuring they are positioned effectively in a highly competitive market.
Key Benefits of Leopard PROWESS:
- Data-Driven Decision Making: PROWESS provides firms with critical insights into market positioning, alternative fee arrangements, and performance metrics, allowing them to align with in-house counsel expectations.
- Enhanced Law Firm Visibility: Firms can expand their reach beyond traditional referrals, ensuring corporate legal departments discover and engage with them based on data rather than word-of-mouth connections.
- Transparency Without a Race to the Bottom: By highlighting expertise and value rather than just rates, PROWESS helps firms differentiate themselves beyond pricing.
- Streamlined Business Development: Law firms can manage connections, track industry standing, and showcase their success metrics, improving their ability to attract and retain clients.
- Stronger Client Relationships: The platform enables firms to leverage shared professional histories and meaningful connections, fostering trust and credibility with prospective clients.
The Future of Legal Service Delivery: AI and Beyond
Leopard’s findings reflect a clear industry shift: corporate legal departments are handling more work in-house, relying on alternative legal service providers (ALSPs) and law firms primarily for specialized matters. Currently, 40% of legal work is managed internally, a trend that continues to grow. However, the survey highlights a persistent challenge—while legal departments aim to insource more work, bandwidth and staffing constraints remain significant obstacles. With 86% of respondents preferring to handle more legal work internally and 74% actively seeking cost reductions by shifting away from external counsel, the need for efficiency and innovation is greater than ever.
GenAI is driving change, but its success depends on how well legal departments and law firms can harness its potential. The growing use of domain-specific GenAI tools (trusted by 77% of respondents) demonstrates a shift toward specialized solutions that enhance accuracy, security, and efficiency in legal processes.
As legal operations professionals continue to navigate the AI revolution, tools like Leopard PROWESS provide a competitive edge by bridging the gap between law firms and corporate clients. By empowering firms with actionable insights, transparent data, and streamlined business development strategies, PROWESS is shaping the future of legal service delivery in the AI-driven era.
For law firms looking to stay ahead in an evolving marketplace, embracing platforms like Leopard PROWESS is not just a strategic move—it’s a necessity.
