Legal departments battling for talent increasingly are finding that if they're not fully embracing the power of technology to boost efficiency and automate rote, dull legal work, the most-sought-after up-and-coming attorneys are passing them by, or becoming so frustrated they quickly exit.

Danielle Sheer, general counsel of the data-protection company Commvault, has seen a big shift since she started her legal career in 2006. Today, she said, often one of the first three questions a younger lawyer interviewing for a job asks is, "Do you use any legal technology?"

"They're not looking to recreate the wheel and spend 20 hours of their week on manual tasks because I don't have technology to help them be more efficient," she said. "If they are not provided with the tools that can make them work more efficiently, they're going to look for another job."