Legal Tech Focus Shifts to Outcome-Based Acquisition
A top legal ops leader recommends outcome-based tech solutions for maximum impact.
Why it matters: Outcome-based procurement boosts ROI and efficiency by aligning legal tech with strategic goals. This focus aids in the effective adoption of AI tools and reduces costs, improving operational effectiveness for legal professionals.
- Legal team manages over 1,000 NDAs annually with no change in efficiency.
- Gartner report highlights misaligned tech strategies affecting ROI.
- 83% of firms use AI, yet struggle with effective strategic impact.
- Only 12.1% of legal departments lead in AI adoption.
Shifting away from a purely tool-centric approach, legal operations leaders are now advocating for outcome-based technology acquisitions. A legal operations leader from a global manufacturer, responsible for handling over 1,000 NDAs annually, highlights the need to integrate legal tech into existing workflows to achieve real efficiencies and strategic results. Despite evaluating three new platforms, no improvements were noted in backlog or external counsel costs, pointing out the limitations of simply acquiring new tools.
Gartner emphasizes that ROI in legal technology is often stifled by tech strategies that don't align with broader business objectives. The focus must shift from addressing immediate needs to enabling long-term strategic growth.
The GLS Legal Tech Line concurs, noting that failed tech initiatives often stem from unresolved operational issues rather than faulty tech choices. Aligning technology purchase decisions with strategic goals can significantly boost efficacy and ROI.
AI tools are in use at 83% of firms but have yet to yield significant strategic impact. This gap highlights the challenges in turning tech capability into meaningful strategic advantage. Notably, only 12.1% of legal departments successfully lead in adopting AI, underscoring the need for a strategic approach to tech implementation.
By the numbers:
- 1000 NDAs — handled annually without efficiency gains
- 83% — firms using AI still seeking strategic impact
- 12.1% — legal departments leading in AI adoption
Yes, but: Significant ROI requires not just tech adoption but alignment with strategic business goals.
What's next: Legal ops may see a shift towards integrating tech solutions with current workflows in 2024.