Corporate legal teams are using AI, but governance is a step behind

Corporate legal teams are rapidly integrating generative AI into their everyday operations, significantly enhancing efficiency, with general counsels reportedly saving an average of 14 hours per week. However, this adoption comes with substantial risks, particularly concerning data security and the possibility of misuse, as evidenced by a case where lawyers were fined over $100,000 for citing non-existent cases. The traditional model of "good enough" permissions, which relied on obscuring documents within complex folder structures, is now inadequate due to AI's ability to index and retrieve information effortlessly. This necessitates a shift from policy-based governance to technical enforcement, involving automated classification of sensitive data, granular access controls, and AI-aware legal-hold workflows to ensure secure and trustworthy AI use. In response, companies like Box are advancing AI applications beyond individual tasks to sequential agentic workflows, such as automating contract review processes, which reduces review time significantly while maintaining security and compliance. The future success of AI in legal departments will hinge on the ability to implement robust governance structures that ensure AI outputs remain secure, auditable, and operationally reliable, elevating legal teams' strategic role within organizations.

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