Is your legal data genAI ready?

For firms considering a genAI journey, it is essential to have a clear understanding of the technology’s capabilities and how their current systems and data may impact successful adoption, writes Laura Wood, client advisor at LexisNexis Enterprise Solutions

Leveraging technology (in varying degrees) to enhance business efficiency is a commonplace approach in legal. However, the arrival of generative AI (genAI) has turbocharged this mindset.

The latest report from LexisNexis states, “One in 10 lawyers said they would consider leaving if their firm didn’t invest in AI.” While this trend is most prominent in large law firms (one in 5), legal service providers across the board are awakening to the promise of AI in all its forms, as a crucial tool for boosting productivity and profitability.

Moreover, two-thirds of organisations in the legal sector have already taken steps to implement genAI within their firms. This includes offering a genAI product to staff, adjusting pricing structures, developing company policies around the use of genAI, and so forth.

This raises important questions: how many firms have taken a step back to evaluate the process of adopting this technology? Additionally, how many have considered the potential benefits of optimising their existing technology to achieve similar efficiency gains? Furthermore, have they reviewed their legacy systems to identify existing data and knowledge that could be leveraged to maximise the advantages of genAI?

To fully harness the benefits of genAI, businesses must ensure that their data warehouse is in order.

If not, and inaccurate or cluttered data is fed into the system, expecting genAI to work efficiently and accurately is simply an unrealistic expectation. It could be likened to cooking a meal with a mishmash of ingredients that have been found in the back of the cupboard and could be out of date. At the end of the process, you may have a meal, but does it taste good or, indeed, is it edible?

For firms considering a genAI journey, it is essential to have a clear understanding of the technology’s capabilities and how their current systems and data may impact successful adoption.

For firms embarking on their AI journey, here are some data management considerations to take into account…

Clean data: the foundation for AI

At a minimum, organisations must be aware of the volume of data they currently hold. Thereafter, cleansing a data warehouse is a daunting task. How do you determine what is necessary and what is not? How do you anticipate future needs? The issue is you don’t know what you don’t know! Understanding the data landscape will help decipher the approach to data cleansing.

Data retention rules and regulations: there are business consequences

As data retention rules and client information custody-related guidelines progressively tighten, the compliance burden falls squarely on firms. The SRA has the authority to publicly “name and shame” firms with complaints against them. Additionally, clients can request records of every piece of data held by legal providers. And the consequences of retaining historical personal data out of compliance can be detrimental to the business. Holding unmanaged, prohibited information and facing the potential risk of complaints simply isn’t commercially astute.

Data storage: balancing performance and cost efficiency

There is the issue of storage and the consequential performance of using that data. Adding new data without removing outdated information can create chaos, much like an overfilled sock drawer where finding the right pair for the day or even a matching pair can become difficult. In the business environment, chaotic data can make it difficult to find what you need, leading to inefficiencies. Regularly verifying and cleaning data can provide financial benefits, potentially eliminating the need for additional storage investments, regardless of whether data is stored in the cloud or on-premises.

Leverage case management for active data management

Modern case management solutions offer tools to help cleanse data en masse. These systems often include bulk deletion capability, allowing firms to routinely remove data that falls outside the pre-defined retention criteria of the business. File lifecycle management functionality can be leveraged enabling firms to stay on top of stored data, while archiving tools can reduce the amount of data stored. This process can be compared to a house move. When moving house, it is common practice to identify what to keep and what to discard, organise retained items — and then move all the belongings to the new abode.

Getting data in order is always a wise decision, regardless of whether the firm is taking its first steps into genAI or simply looking to “clean house” and maintain organisational tidiness. The efforts will be well worth it, delivering efficiency, improving performance and enhancing profitability.