Digitalization and Generative Artificial Intelligence in Legal Departments
In this guest article, Fondia’s Henna Tolvanen discusses the challenges of digitalization in legal departments and the utilization of generative artificial intelligence (AI)—topics that were raised at the December Legal Tech Glögit event.
Before Christmas, Fondia hosted a Legal Tech Glögit event, where we focused on the digitalization of legal departments and how to prepare for utilizing generative artificial intelligence. This time, participants solved practical challenges in a workshop led by Henna Tolvanen and Fanny Skult. During the evening, we delved into several key questions that arise when planning the digitalization of legal departments.
One of the significant challenges is how to identify and prioritize processes that should be automated. Legal departments often face limitations due to restricted resources and budgets, so the basics of prioritization, such as cost savings, reducing compliance risks, and decreasing workload, play an important role. Additionally, securing the support of stakeholders is essential for the success of projects.
The choice of legal technology is another critical question. There are many options available, but finding the right technology requires careful consideration. One must evaluate whether the solution best serves the needs of the legal department alone or whether a more scalable tool could provide broader benefits to the organization. Balancing between customization and scalability requires strategic thinking and consideration of long-term needs.
Contract lifecycle management also proved to be a central theme. Many organizations lack clear retention and management practices, leading to delays and increased risks. To solve this problem, legal technology can offer effective tools, but alongside them, it is essential to define processes that ensure all contracts are stored and managed securely.
Resistance to change often makes advancing digitalization difficult. Not all team members are ready to embrace new tools, and some may consider traditional methods, such as email, sufficient. In such situations, leadership by example and active support play a significant role. Training and concrete examples can promote the adoption of new technology and help build a culture that supports digitalization.
The role of generative artificial intelligence sparked a lot of discussion. Many legal departments are interested in the possibilities of AI in law but are unsure where to begin. Generative AI can bring significant benefits, for example, in automating routine tasks, but its ethical use and responsibility must be ensured carefully.
Finally, we discussed how the benefits of digitalization in legal departments can be measured. Proving ROI in legal tech requires clear metrics that take into account not only cost savings and time savings but also qualitative benefits, such as reduced compliance risks and improved customer satisfaction.
Thank you for your active participation and great discussions!
Henna Tolvanen
Senior Legal Counsel, Group Legal Tech and Design Lead
