CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.
Survey: 25% of Legal Departments Report Cost Savings From GenAI
Artificial intelligence, particularly generative AI (genAI), is powering rapid evolution for in-house legal departments, including cost-cutting effects and career implications, according to a new survey.
The survey by the Association of Corporate Counsel and Everlaw reflects the blistering pace of change related to tools like AI, with about half of respondents (49%) saying they expect operational costs to fall thanks to AI and 25% saying they already have. The organizations surveyed 475 chief legal officers (CLOs), general counsel, other in-house counsel and legal operations professionals from U.S. corporate law departments.
Other notable findings include:
- 58% of legal departments expect a reduced reliance on outside legal service providers, specifically due to GenAI, a figure that more than doubled over 2023 when just 25% of respondents said they would cut the number of law firms they work with in the next year.
- A third of chief legal officers are using GenAI daily; 79% of CLOs use GenAI once a week.
- 23% of legal professionals have proactively integrated GenAI into their daily routines; and more than two-thirds (70%) of in-house professionals use GenAI at least once a week. Notably, only 10% say that they are neither using nor planning to use GenAI.
BDO: Half of Finance Leaders Expect AI to Improve Audit Quality
A majority (54%) of senior finance leaders at middle-market companies say technology like artificial intelligence (AI) will enhance the quality of audits, but many say challenges involving data, talent and tech compatibility remain, according to a new BDO report.
Based on surveys of 200 senior finance leaders at public and private companies, BDO’s inaugural audit innovation report indicates that companies are relying on advanced technology to bolster the audit process amid those challenges.
A few key findings:
- 63% of senior finance leaders say trust is somewhat or significantly enhanced for them and their key stakeholders when auditors use advanced technology, and 64% say they look for a firm to use AI before even engaging with an auditor.
- Although recruiting experienced accountants is the top strategy for companies grappling with the labor shortage, 61% plan to mitigate workforce inefficiencies with AI.
- 80% of respondents agree that a lack of compatibility between an audit firm’s tech and the audited organization’s financial systems and processes is sometimes or often a challenge. The majority of those polled (77%) also cite extracting and merging data from various systems as a challenge when working with an external audit firm.
