Modernizing Your Legal Department: Leveraging Technology, Data, and Collaboration for Optimal Performance

Corporate legal departments face increasing pressure to deliver more value even as they grapple with budget cuts, rising costs, and talent shortages. A recent webinar, How Legal Ops and GC Teams Can Partner to Unlock Efficiency and Expand Business Value, featuring legal ops and in-house counsel leaders explored innovative approaches to address these pressing issues. The discussion covered strategies to modernize legal operations, leverage artificial intelligence (AI) and other emerging technologies, foster collaborative cultures, and boost efficiency in the face of resource constraints.

The following speakers provided insights into a comprehensive framework for optimizing your legal department's performance:

• Dr. Helena Vrabec, Privacy Attorney, Instacart
• Heather Jacobson, Vice President of Operations, Axiom Advice & Counsel
• Maryam Salehijam, Phd., Technology Practice Manager, Axiom Law

1. Building a Collaborative Culture Between Legal and Legal Ops

Fostering strong partnerships between legal teams and legal operations professionals is crucial for driving innovation and efficiency. Our panelists all agreed that tension between in-house counsel and legal ops is common in legal departments, but what they also pointed out was how important it was to foster collaboration and understanding between the two groups to improve efficiency and productivity throughout the company.

As Maryam Salehijam stated, the legal department is often associated with the phrase, “The Department of No,” which negatively affects the way the entire department interacts with the large company ecosystem. But what many departments have recently done or are currently shifting into is the “The Department of Yes,” aligning legal department goals with the overall strategic objectives of the company.

But how do they get there? The panelists discussed the approach of embedding representatives of both the in-house team and the legal ops team in larger business conversations.

Helena Vrabec, Senior Privacy Counsel at Instacart, emphasized how crucial the partnership is and the essential role that legal ops play in the department’s success: "I find it helpful when I can use the legal ops support to have conversations with other business team members, especially when there might be a slight difference in the language. The legal ops people can get everyone on the same page. Those conversations might become easier when it’s not just an attorney on a call and a business partner. A legal ops person can soften the conversations." Those conversations might become easier when it’s not just an attorney on a call and a business partner. A legal ops person can soften the conversations."

To foster this collaborative culture effectively, the panelists suggested the following key strategies:

• Establish clear roles, responsibilities, and communication channels
• Encourage regular cross-functional meetings and knowledge sharing
• Develop shared goals and KPIs aligned with business objectives
• Celebrate successes and learn from failures together

2. Embracing Innovative Technologies and Data Analytics

The panelists also noted how the legal industry has traditionally been a slow adopter of new technologies, but forward-thinking law departments are now leveraging emerging tools to drive efficiency and insights. Some key technologies legal departments are leveraging include:

• Artificial Intelligence (AI) and machine learning
• Contract Lifecycle Management (CLM) systems
• Data analytics and visualization platforms
• Workflow automation tools

Vrabec sees the increasing interest and development of these technologies as positive overall for the legal department, noting “... it's a big opportunity for everyone ... the business teams and engineering teams are probably at the forefront of that development. But it's also important for the legal departments."

Vrabec continued with an example of how implementing AI-powered solutions can dramatically improve productivity based on her in-house experience: "We designed [a] smart intake form that helps the requestors think through all the aspects of their questions. So, when the question is sent to me, it's already complete with everything that I might need, and it eliminates this back and forth that can take so much time and attention." When adopting new technologies like Vrabec’s smart intake form, the panelists suggested considering the following strategies:

• Conduct a thorough needs assessment to identify pain points and inefficiencies
• Start with pilot programs to test solutions before full-scale implementation
• Provide comprehensive training and change management support
• Continuously measure ROI and adjust your technology strategy as needed

Utilizing AI and other legal technologies offers legal ops leaders and GCs a simple way to be more efficient and scale their teams' often heavy workloads. Legal tech also creates an opportunity for the entire legal operations department to become a facilitator of this integration, speeding up and strengthening the communication process between teams.

3. Implementing AI Technologies to Modernize Legal Departments

Vrabec, Jacobson, and Salehijam expressed that AI presents immense opportunities to transform legal operations, but many departments struggle with where to start. Some high-impact areas to consider are:

• Contract analysis and due diligence
• Legal research and case prediction
• eDiscovery and document review
• Intellectual property management

General counsel and in-house leaders should consider the opportunities for skill growth through this implementation for the team. Vrabec shared her excitement about the partnership with her general counsel on AI adoption: "I'm actually grateful for the fact that our GC sees generative AI as an opportunity for our legal team. It gives me the opportunity to develop my own skillset as a lawyer. I'm no longer just a privacy lawyer. Now I'm becoming an AI lawyer."

Overall, the panelists offered the following best practices for AI implementation:

• Start with well-defined use cases that offer clear ROI
• Ensure proper data governance and security measures are in place
• Combine AI with human expertise for optimal results
• Stay informed about evolving AI regulations and ethical considerations

As a counter-thought, Axiom Advice & Council’s Heather Jacobson warned about using a cautious eye when determining the appropriate use case scenarios for AI tools: "The question we were all asking ourselves is if the accuracy rate is sufficient for these technologies? I think it’s the wrong lens for us to view this through. The question should be: When is a generative AI tool more accurate than a first-year, a second-year, or a fifth-year lawyer? At what point does it start to do that work?" Jacobson shared that legal leaders need to adopt the mindset that AI is not meant to replace roles, and, at this point, is not even capable of doing so accurately. Instead, it helps legal teams increase the pace and accuracy of legal work and matter handling.

Salehijam added that “in-house legal teams want to become more flexible and agile,” and encouraged legal teams to sit down and decide what their risk profile is, emphasizing the importance of a profile that still allows for growth and change.

4. Maximizing Efficiency and Outcomes Through Strategic Resource Allocation

As a strategy for enhanced flexibility and agility, the panelists discussed how optimizing resource allocation is critical for legal departments to deliver maximum value to their organizations. This involves:

• Conducting regular workload analyses
• Leveraging flexible staffing models
• Implementing robust matter management systems
• Developing clear decision criteria for outsourcing vs. insourcing

Jacobson highlighted the evolving role of legal operations in this area: "Legal ops started many moons ago as more of an administrative function initially to take on work that didn't necessarily need to be done by lawyers but was critical to be part of a broader organization. But over the last few years, we’ve seen a shift to a more strategic role.”

• Implement standardized processes and playbooks for routine tasks
• Leverage legal project management methodologies
• Utilize data analytics to identify bottlenecks and improvement opportunities
• Regularly reassess and optimize your technology stack

Collaboration and communication between legal ops and legal department leaders arealso crucial to the department’s growth and scalability. Vrabec noted that by “leaning on the skillset of legal ops” general counsel and department leaders can ensure that technology and processes are scalable for the department’s current and future needs.

Modernizing Your Legal Department: Conclusion

Modernizing your legal department requires a multifaceted approach that leverages innovative technologies, fosters collaboration, and optimizes resource allocation. Jacobson notes that by embracing AI, building strong partnerships between legal and legal operations teams, and implementing strategic frameworks for efficiency and risk management, legal departments can become “powerhouses of innovation and value creation” within their organizations.

As your legal department evolves into a more strategic role, it's crucial to stay informed about emerging trends and best practices. We encourage readers to listen to the full webinar on-demand for more in-depth insights and practical strategies to transform your legal department. By taking proactive steps to innovate and optimize, you can position your legal team as a true strategic partner driving business success.

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