The rise of generative AI technology is revolutionising the legal sector, prompting Alternative Legal Service Providers to adapt to changing demands. Companies like Unilever and key ALSPs like Elevate and Factor Law are strategically leveraging AI tools to enhance efficiency and stay competitive in the market.
Generative AI Disrupts Legal Sector’s Alternative Providers
Generative AI technology is reshaping the landscape for Alternative Legal Service Providers (ALSPs). As companies increasingly bring more legal work in-house using AI, the role and demand for ALSPs are shifting.
Unilever’s Adoption
Unilever, for instance, has implemented over 400 AI systems across its operations. Luis-Xavier Hernandez, Unilever’s Group General Counsel for Beauty and Wellbeing, stated that by utilizing AI tools, they have improved efficiency and reduced dependence on ALSPs for tasks like contract drafting, social media compliance audits, and certain IP and privacy matters. Hernandez noted immediate benefits in cost, quality, engagement, and speed, with contract management costs decreasing by 60-80% and processing speed increasing by 25%.
Elevate’s Strategic Response
US-based law company Elevate, with $100 million in revenue in 2023, is cautiously observing AI trends. CEO Liam Brown and Innovation VP Pratik Patel expressed a “second-mover approach” — studying AI developments before integrating them to ensure optimal results. Elevate aims to remain trusted by major corporations and law firms by eventually providing the best AI solutions to clients.
Factor Law’s Proactive Approach
Factor Law, another major ALSP, launched “The Sense Collective” initiative to explore generative AI applications with companies like Intel and Microsoft. Led by Ed Sohn, the initiative seeks to establish best practices for AI tools and prepare employees for these advancements. Factor Law’s CEO, Varun Mehta, described how AI is expected to significantly increase workload speed and data processing, highlighting a private equity firm’s projection to quintuple the number of deals reviewed, reducing costs by 20-80%.
Conclusion
Generative AI’s rapid evolution is compelling ALSPs to re-evaluate their strategies and technological adoption to remain competitive and effective in the changing legal services market.
