The use of artificial intelligence (AI) by in-house lawyers is not so widespread, according to a new law firm study analysing trends across the international construction sector.
Just 17% of senior in-house counsel said they currently use AI tools in disputes or contract management.
Some 28% of respondents to the CMS International Construction Study 2024, released this week, and conducted in partnership with YouGov, said they will never use AI.
Additionally, only 57% of in-house lawyers expect their external legal counsel to use AI tools, compared with 30% who do not expect it.
CMS, in partnership with YouGov, surveyed 125 senior in-house counsel in the international construction, infrastructure, and engineering industries, about half of them working in businesses with annual revenues of over $1 billion.
The study included respondents whose business focuses on the Middle East, with 42% operating there and 37% wholly or partly responsible for the region.
Commenting on the findings, Adrian Bell, partner and co-head of infrastructure, construction, and energy disputes at CMS, said: “AI will not change construction disputes overnight. But it’s already clear that there’s a much stronger use case for it than many lawyers believe, both in preventing and resolving disputes.”
“Legal departments will inevitably be encouraged by their businesses to use it, not least because of the prospective cost savings. And when they see their peers deploying it—or the other side in a dispute using it to gain a material advantage—demand will only increase further,” he said.
The study further found that environmental issues are likely to contribute a higher proportion of disputes in the future, doubling from 6% to an anticipated 12%.
ESG concerns will impact the source of disputes in the future, with over half (54%) of respondents anticipating more risks associated with sustainability reporting requirements in the next year.
Bell continued: “The escalating concerns surrounding ESG means this is an issue to watch closely within the industry,” he continued. “It’s imperative for stakeholders to adapt their contractual frameworks and negotiation strategies to address these evolving challenges.”
