Third and final part of our thematic dossier on the challenges of adoptingGenerative AI. Find the first two articles here:
- Generative AI use cases for the Contract Management
- Limits and obstacles to the adoption of Generative AI applied to Contract Management
Today, discover the third part of our series on the impact of GenAI on the Contract Manager and Legal professions!
Will the legal profession be strongly impacted by Generative AI?
AI, and in particulargenerative AI (Gen AI), is likely to affect, unlike some previous waves of automation, not only jobs with a high repetitive component but also occupations involving a higher degree of autonomy.
As illustrated by the joint study by MIT and BCG, "Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality. Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality ", generative AI brings a seductive promise for companies of productivity increases of up to 40%, including for skilled workers.
While legal professions are currently less impacted than other populations (notably customer service professionals or content production professions), administrative paralegal tasks, legal analyses or information research necessary for decision-making, are likely to be progressively equipped by AI.
The arrival of generative AI has the potential to boost labor productivity by up to 40%.
Source: The state of AI in 2023: Generative AI's breakout year
The development of AI thus represents a unique opportunity for companies to gradually redeploy their human capital to new, more complex tasks.
Furthermore, from a macro-economic point of view, the adoption of generative AI also represents a major opportunity to halt the erosion of labor productivity, which has been slowing down in France for the past twenty years, particularly in comparison with our main European (notably Germany) and American competitors. According to the Conseil d'Analyse Economique (CAE), the stakes in terms of GDP are no less than 140 billion euros..
The impact of artificial intelligence on our relationship to knowledge
If AI is also likely to affect skilled jobs, it's mainly because it changes the relationship to knowledge by facilitating access and reducing the gap - in terms of knowledge - between low-skilled and high-skilled people.
We can assume that the adage "knowledge is power" will remain valid. However, the lowering of "barriers to entry" in terms of access to information is likely to reinforce the importance of other types of skills, notably cognitive, relational, social (soft skills), negotiation, creativity and decision-making.
The impact of AI on businesses: challenges and opportunities
The prospects for generative AI often suffer from the persistent myth that AI can simply replace humans.
When it comes to law or contract management, AI can become a valuable asset, increasing team efficiency. However, while AI can prepare complex decision-making, it remains an assistance tool, incapable of replacing the nuanced judgment of professionals. AI cannot fully understand the legal context, balance risks and business stakes, and is not universally applicable across all language models.
What are the opportunities of Generative AI for lawyers and contract managers?
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Lawyers and Contract Managers will spend less time on information retrieval tasks
when a chatbot can easily analyze one or more contracts, extracting the most important information, researching case law and so on. Consistency checks can also be largely delegated. -
The drafting of contracts will be progressively facilitated
with an "assisted" review/redlining process, even if the question of traceability of changes and authorship of content proposals will remain an issue. -
AI will make it possible to carry out part of the risk analysis
, at the very least scoring a level of risk (in relation to best practice clauses) or even including proposals for corrections or mitigation - under the control of the lawyer or Contract Manager, who will need to know how to contextualize, explain and weight.
The role of the lawyer or contract manager is thus destined to undergo a significant transformation (which goes beyond mere technological adaptation), which does not, however, herald a replacement of man by technology.
Faced with the advent of AI, it' s through innovation and a strategic approach that the lawyer or Contract Manager will be able to stand out.
For these professionals, the challenge goes far beyond the integration of AI: the aim is to demonstrate that Contract Management contributes to the establishment of truly partnership-based relationships, at the service of supply chain extensive, flexible and responsive. From this point of view, the question is to know whether AI can (or cannot) be a vector of innovation or, conversely, whether it will simply be a tool for reproducing existing contractual practices.
Generative AI: a fad or a lasting effect for Contract Management ?
Three figures to explain the pace of adoption of AI by the general public, which will gradually require a certain continuity of use between the private and professional spheres.
3.5 years for Netflix to reach one million users,
10 months for Facebook,
5 days for ChatGPT!
The major technology companies, aware of this potential, are already investing in the integration of AI into their platforms (Microsoft with Copilot, or Google with Bard).
For Contract Managers and lawyers, AI - which they must grasp at its true value and without delay - represents an inevitable evolution and an opportunity to rethink their role and enhance the value of their expertise!
Interested in finding out more? Don't hesitate to contact us for more information.
Further information
Limits and obstacles to the adoption of Generative AI applied to Contract Management
Part two of our thematic dossier on the challenges of adopting Generative AI. Find the 1st article here: AI use cases
Generative AI: which use cases for Contract Management ?
Generative artificial intelligence (GenAI), symbolized by the rise of ChatGPT in particular, is generating as much excitement as it is questioning in many fields, and Contract Management is no exception.
Generative AI: how will it change business models?
The steady advance of generative AI is radically changing the way economic sectors derive value. It's a change
