Welcome to your monthly dose of insights! In this edition, we explore:
- AI’s Impact on Procurement and Contracting
- Alternative Fee Arrangements for Law Firms
- Secrets to Successfully Sourcing Legal Services
- Lessons from the Digital Transformation Journey
- The Future of Professionals in Asia & Emerging Markets
Here’s our key learnings we got this month:
- GenAI is set to redefine the procurement landscape, automating tasks and revealing game-changing insights.
- Alternative fee arrangements and subscription models are unlocking new opportunities for law firms to deliver unparalleled value.
- Embracing AI requires gradual adaptation, continuous learning, and a focus on human elements
- Trusted AI can boost productivity, but strong governance frameworks are crucial
- Finding the right law firm at the right price is more important than ever in 2024
Okay, that’s all from us, let’s get to the meat of this newsletter:
AI Transforming Procurement and Contracting
In an enlightening interview, Stuart Brock of iKinetiq Innovation Solutions discusses the game-changing potential of generative AI in procurement. From contract summarisation to mining historical negotiation data, GenAI is set to redefine contract management and vendor relationships.
However, Brock emphasises the need for robust monitoring and authentication standards before unsupervised application becomes feasible. Mastering these technologies will be key to staying ahead.
Takeaway: Assess your organisation’s readiness for GenAI in procurement and start exploring ways to leverage this technology for more efficient and insightful contract management.
Exploring AFAs and Subscription Pricing for Law Firms
Google’s Aaron Boersma shares valuable insights on alternative fee arrangements (AFAs) and subscription pricing models.
Predictable matters are ideal candidates for AFAs, while subscription models break down barriers to accessing outside counsel. Boersma recommends focusing on existing strategic relationships and fostering a partnership mindset. Aligning interests is crucial for success.
Takeaway: Identify opportunities within your law firm to implement AFAs or subscription pricing models, focusing on strategic client relationships and matters with predictable timelines.
Secrets to Successfully Sourcing Legal Services
In 2024, in-house legal teams face the challenge of doing more with less as rates rise and budgets shrink.
Finding the right law firm at the right price is crucial. This report provides answers on what in-house counsels look for, best practices in buying and selling legal services, and how technology and data can support sourcing and partnerships.
Contributors: Sue Manik (Standard Chartered Bank), Laura Nicholls (Clifford Chance), Melanie Sanchez (Ontario Teachers’ Pension Plan), Cameron Smith (Novartis), Dr. Gleb Tsipursky (Disaster Avoidance Experts), Eleonora Melato (Assicurazioni Generali), Michael Gerstenzang (Cleary Gottlieb Steen & Hamilton), Ana Buitrago (PwC)
Key takeaways:
- In-house counsel look for law firms with a compatible mindset, deep knowledge of the client’s business, robust resources, a client-centric approach, and a commitment to diversity, equity, inclusion, and ESG.
- Building an effective panel of firms involves balancing premium and commodity work, generalists and specialists, consolidation and diversification, and international and local expertise.
- Collaboration between counsel and procurement, data-driven decision making, and ongoing relationship-building are essential for successful sourcing of legal services.
Navigating the AI Journey: Lessons for Lawyers
Olga V. Mack reflects on the evolution from physical law books to digital databases, offering lessons for integrating AI in legal practice.
This journey teaches us that adaptation is gradual, continuous learning is essential, and the human elements of law remain paramount. As we embrace this new frontier, let’s proceed with confidence, curiosity, and a commitment to harnessing AI’s potential to elevate the practice of law.
Takeaway: Embrace a growth mindset and commit to continuous learning as you navigate the integration of AI in your legal practice, while staying focused on the human elements that define the essence of law.
The Future of Professionals in Asia & Emerging Markets
A Thomson Reuters survey of 1,000 APAC professionals reveals that over 1 in 3 believe AI will be transformational within 5 years.
While most desire AI to streamline admin work, a staggering 70% want AI to produce work products. However, only 4% consider current AI regulation sufficient. The takeaway? Trusted AI can unlock immense productivity gains, but robust governance is essential for responsible adoption.
Call to Action: Engage in discussions within your organisation and industry to shape robust governance frameworks for responsible AI adoption, ensuring that productivity gains are balanced with ethical considerations.
This month’s quote
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” – Socrates
In an era of rapid technological advancement and shifting paradigms in the legal and procurement landscapes, this timeless wisdom from Socrates reminds us to embrace change with a forward-looking mindset.
Rather than resisting the inevitable, we must channel our efforts into constructively shaping the future. By proactively engaging with emerging technologies like AI and adapting our practices, we can unlock new opportunities and build a more efficient, effective, and equitable legal ecosystem.
