Lexion, an AI-powered contract management system, today announced the results of a survey of 450 legal professionals on the current state of legal technology. Respondents include General Counsel, in-house counsel, legal operations and contract managers across a variety of industries, and the results were published in the report: ‘The State of Legal Technology: Improving Efficiency with Existing Staff and New Technology as Hiring Slows.’ Respondents were asked to provide insight into what legal teams are doing in anticipation of an economic slowdown.
“This year’s State of Legal Technology carries a sense of urgency given this moment we find ourselves in,” said David Wang, chief innovation officer at Wilson Sonsini. “We know 65 percent of legal professionals are worried about impacts of the uncertain economy and 69 percent anticipate cutting spending through reduced outside counsel consultation, hiring freezes, and layoffs. These worries are well-founded, but we know economic challenges do not decrease risk. In fact, they tend to surface risks previously covered by the rising tides and create new tempests and conflicts. It’s time to leverage technology to increase the legal team’s efficiency, better measure risks and outcomes, and deliver greater value to our clients and stakeholders.”
Key findings include:
- Companies plan to slow down hiring (or freeze hiring altogether), while reducing outside counsel spend and conducting layoffs.
- Yet respondents remain optimistic that innovations in technology can increase efficiencies as companies struggle to do more with less.
- Of the challenges in-house counsel identified as significant barriers to doing their jobs well, ‘too much time spent on low value tasks’ rose to the top. Over one third of respondents specifically identified time wasted on finding, tracking and versioning documents, despite the fact version control solutions have been around for decades.
“In-house lawyers are bullish on using technology to alleviate increasing workloads,” said Gaurav Oberoi, cofounder and CEO, Lexion. “Yet finding the right technology platform – one that doesn't take months of implementation and training – has remained elusive, and legal teams have been cautious as a result. The slowing economy is pushing legal teams to find and adopt high ROI systems that fill the headcount gap, while requiring minimal change management."
Lexion offers an end-to-end contract management solution for in-house legal teams that helps them capture key metrics and accelerate deals while using AI and automation to help them scale. Unlike other contract management systems, stakeholders can work with Lexion entirely via email, eliminating the need for complex configuration and training.
We built Lexion at Microsoft co-founder Paul Allen’s artificial intelligence research institute (AI2) and are backed by the same investors that funded OpenAI (Khosla Ventures), helped launch Amazon (Madrona Venture Group), and have advised Google (Wilson Sonsini). With a top notch and experienced team from Microsoft, Facebook, Google, and Amazon, we built a company that CB Insights ranked the #1 most promising AI legal tech startup in the world two years in a row (2020, 2021). Lexion is a Top 40 Intelligent Application based on votes from Goldman Sachs, Madrona, Khosla Ventures, Andreessen Horowitz, Sequoia Capital, and many of the top AI investors in the world. Most importantly, fantastic brands trust Lexion to manage their contracts: Outreach, OfferUp, Blue Nile, Apptio, Brooks, and many more. Visit https://lexion.ai for more.