Contract Tech Won't Replace In-House Roles, but It Could Change Skill Expectations
Automated contract solutions aren't a substitute for corporate legal department personnel, but indoctrination of such technology may be influencing the kind of talent that in-house teams are seeking to hire.
July 17, 2020 at 03:35 PM
4 minute read
The COVID-19 pandemic may have more legal departments turning to contract tech for help navigating force majeure clauses or potential opportunities for savings. But don't count on software being swapped for human beings anytime soon. Still, while contract tech may not be reducing the need for legal department head count, it could be influencing the types of skills employers are seeking out.
Dan Broderick, co-founder of the AI-based contract review company Blackboiler, argued for the need of a triumvirate of people, process and technology to solve contract challenges, possibly due to their still being limits as to what the final item on that list can accomplish. For example, AI contract review software can review an organization's real estate leases for force majeure clauses or pandemic exemptions, but there may be other relevant yet obscure language buried inside of the contract that requires a human's capacity to extrapolate and interpret.
"It's like you have 100 subtasks to get one task complete. And the AI is going to be able to automate 30 of the subtasks, and you are still going to need humans to take care of the other 70% of the subtasks," Broderick said.
How that division of labor will continue to play out within corporate legal hiring remains to be seen. Zach Abramowitz, a consultant in the legal technology space, indicated that many law departments are making a deep understanding of technology in general a priority during the hiring process.
"We are definitely seeing a lot of companies make moves around their contracts right now, so there are going to be systems to implement, so it stands to reason that knowledge of these systems would be a plus," he said.
However, it's not a mortal lock that contract technology skills will land enterprising lawyers a job inside of corporate legal. While Jared Coseglia, founder and CEO of TRU Staffing Partners, doesn't believe that automated contract tech will replace the need for flesh and blood attorneys, he raised the possibility that departments won't be looking to handle all of that work in-house.
"I still think they are going to largely lean on external providers. … I don't know that they are going to look to the outside to higher talent from within that's specialized in contract management. I'd say they'd turn to consulting firms and third part software firms first," Coseglia said.
As a result, most of the hiring he's seen take place in the contract management and automation space has occurred on the service provider or software arena. But that doesn't mean that corporate legal doesn't have personnel needs along those same lines as well.
Mark Yacano, managing director of Major, Lindsey & Africa's transform advisory services group, has noticed an increased demand for contract administrators inside of law departments. Essentially, "people who can configure the system, who can move contracts through the system, who can do a fair amount of the non-lawyer assembly of templates and documents," he said.
But even with personnel installed to help monitor and facilitate contract management workflows, legal departments likely won't be cutting back on attorneys as a result. Instead, Yacano believes the end result will be a reprioritization of resources inside of corporate law.
It will allow legal departments to reallocate how time is used so that lawyers are working on higher value things. It will allow them to enable the business stakeholders to do certain things without necessarily having legal intervention," Yacano said.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250