Corporate law firms are waking up to the power of in-house data analytics, with three-fifths (60%) of legal operations directors insisting it is a priority for their organisation.
According to the Law Department Analytics Survey Report, released by HBR Consulting, the move reveals the speed at which corporate law departments have decided to mine data to reduce outside spend, and streamline and improve operations.
HBR senior director Andrew Baker said that just five years ago, the term data analytics “wasn’t even in the vernacular" but now in-house counsel are performing a wide range of tasks through the use of data, including choosing outside counsel and estimating legal spend, evaluating opposing counsel and parties, and reviewing contracts.
While just over a sixth (16%) of respondents said use of data science and analytics was a “high priority,” another two-fifths (41%) called it a “medium priority.”
Just under two-fifths (38%) said their departments are in early-stage planning, and only 6% said it was not a priority. The survey also found that one in three respondents who categorised themselves as “experienced” with data analytics were planning to use data to evaluate outside counsel’s substantive performance, whle 40% were set to use data to review contracts “and related risk".
Corporate law departments are gravitating toward applying data science to do more complex tasks. Some 41% of those surveyed said they were currently using data science in “high complexity” cases, compared with 63% who said they planned to do so in the future.