If it hasn't already, artificial intelligence (AI) might be coming to a law firm near you this year. A survey conducted by Ari Kaplan Advisors and sponsored by Seal Software shows that the use of AI inside corporate legal departments is on the rise, branching out from straight contract analysis into risk assessment and procurement/compliance matters.

Ari Kaplan, principal of Ari Kaplan Advisors, interviewed 30 legal department professionals— including leaders inside legal departments at companies like American Express, Nokia and Hewlett Packard— but his results could ultimately portend a heightened use of AI at traditional law firms as well.

“The extent to which the corporate legal community influences the use of AI is impacting the widespread application,” Kaplan said.

So just how is the corporate legal community using AI to review contracts and agreements? As of right this minute the answer seems to be sparingly. According to the survey, a little over 60 percent of respondents have yet to deploy the technology for that purpose, but 50 percent expect their spending in that area to increase in 2019.

Kaplan points to the growth in the amount of information that companies are managing and a growing willingness to embrace technologies that can mitigate those data challenges as potential drivers.

“Many of these organizations need to find answers more quickly to make decisions in a rapidly changing economy. There needs to be a combination of technology and talent to adapt,” Kaplan said.

Included in those data challenges are stringent data privacy mandates like the European Union's General Data Protection Regulation (GDPR), which requires organizations to report a personal data breach within 72 hours of gaining awareness.

Since the GDPR is far from the only privacy regulation in place around the world, keeping up a diverse slate of notification windows can require either a whole lot of manpower or a technical assist. The survey would seem to indicate that more people are interested in the latter.

Over half, 55 percent, of respondents ranked addressing data privacy and GDPR related concerns as the primary use of contract AI technology, followed closely by reviewing non-disclosure agreements, 45 percent, and leasing and M&A transactions, 36 percent.

Steve Harber, head of legal partnerships at Seal Software, said that AI contract technology can help corporations be better prepared should a breach arise.

“What the real problem is, is that once you get hacked, if you don't know what your notice requirements are to your clients to let them know, you know, very often you have 48 to 72 hours to give notice and the only way to be prepared in the event you're hacked is to analyze your agreements in advance and have a plan in place…,” Harber said.

While bodging a privacy-induced headache is a benefit, Kaplan said there are potential areas of concern that users might have with contract AI. Specifically, that money will be invested in a solution that either won't be used much or will work so well that it will eventually make humans obsolete.

Kaplan argued that the concern over usage could apply to any technology, and noted that human legal advisors will still be required to provide insight once the machine is finished sorting records.

Harber said that corporate law departments are using the technology to accomplish more work with the same number of attorneys, something that could help drive AI adoption on the law firm side as well.

Corporations outsourcing business to firms may be reluctant to foot the bill for the work of six associates if they think contract AI could shrink that number.

“They're not just going to stand still or sit still and let them staff it the old fashioned way. So I think the more sophisticated the legal departments become in the corporations, the more they are going to expect from their outside counsel,” Harber said.