The Future of Work: why a digital mindset matters?

The Future of Work: why a digital mindset matters?

Generative AI marks a transformative era for the legal industry, promising to reshape legal practice and redefine the roles of professionals. As these advanced technologies gain momentum, it will become increasingly important to focus on people. GenAI extends far beyond any predicted work efficiencies. It will inform the future of work, necessitating new skills and a digital mindset that could redefine legal talent over the next ten years.

The early stages of digital adoption

The legal profession is in the early stages of GenAI adoption, with many in-house legal teams and firms still exploring its potential benefits and applications.

According to Thomson Reuters 2024 Generative AI in Professional Services report, 12% of legal industry respondents currently use legal-specific GenAI with another 43% planning to adopt it in the next three years. The International Legal Technology Association (ILTA) in its 2023 Technology Survey reported that approximately 25% of law firms use it for tasks such as document review, legal research, and contract analysis. The Law Society reports similar figures for lawtech adoption including AI in Solicitors’ attitudes toward lawtech adoption.

In-house legal teams are similarly cautious, with Association of Corporate Counsel (ACC) in 2023 Legal Technology Report for In-house professionals revealing that currently 24% are using GenAI tools. The Liquid Legal Institute reports a higher adoption rate in its global survey of 200 firms, with 51% of the law firms surveyed already implementing AI-based tools and solutions, primarily for automating document processing and legal research.

These reports point to overall low rates of adoption. This is reflected in our conversations with clients, where the use of GenAI in legal work and legal operations is described as in its early stages.

What is often absent from these reports is the future people challenges related to the cultural impact of digital transformation and the skills and mindset that will be needed by legal teams. A subject that senior legal leaders are increasingly speaking to us about.

Digital mindset and the leadership opportunity

The relatively low rate of adoption of GenAI within the legal sector presents an opportunity for legal teams to cultivate a digital mindset, as described by Tsedal Neeley and Paul Leonardi in their book The Digital Mindset: What It Really Takes to Thrive in an Age of Data, Algorithms, and AI.

This mindset involves understanding how digital tools and data can solve problems, create value, and drive innovation. It combines foundational data literacy with a willingness to experiment, learn, and collaborate.

Neeley and Leonardi argue that achieving 30% data literacy in these new technologies is the basis needed for individuals to understand the potential and limitations of different technologies and how they can improve business processes and outcomes. It is not about becoming a technical expert in large language models or coding but having the vocabulary, understanding, and confidence to ask key questions and with it the ability to adapt to change, and be comfortable with ambiguity.

Leadership plays a critical role in demonstrating commitment to digital transformation from investing in digital skills training for employees to promoting a culture of digital literacy. This ongoing process requires regular communication, feedback, recognition of innovative ideas, and celebration of failure.

In March 2023, Goldman Sachs in The Potentially Large Impacts of AI on Economic Growth reported that up to 44% of legal tasks could be automated using GenAI, making the legal industry one of the highest impacted by this technology in its analysis.

Based on the results of its Future of Professionals Report How AI is the Catalyst for Transforming Every Aspect of Work 2024 report, Thomson Reuters has estimated that the productive gains from the use of GenAI could potentially be up to 200 hours per annum per person based on those surveyed.

The future of work

Simmons Adaptive is a flexible resourcing solution offered by Simmons & Simmons. We provide clients with access to high-quality legal professionals on a contract or project basis, allowing them to manage workload fluctuations and specific project needs efficiently. This service is designed to be a cost-effective and strategic part of clients' workforce management providing services in conjunction with their law firm business partner, Simmons & Simmons.

One area of consideration when discussing the future of work is people and how leaders can foster a culture of innovation and digital literacy. A people approach to digital transformation not only has the potential to enhance operational efficiency but position legal departments as forward-thinking entities capable of navigating the complexities of modern legal practice.

As we continue to explore this topic, we invite your thoughts and insights:

• How do you think leaders can effectively foster a digital mindset within their teams?
• What strategies have worked in your experience?

What should leadership and legal teams be doing to support their teams in this journey?

• Embrace continuous learning: Encourage your teams to continually update their digital skills and knowledge. This involves promoting a culture of learning and curiosity, where seeking out new digital tools and practices is valued.
• Foster digital collaboration: Utilize digital tools to enhance collaboration among team members, even in remote or hybrid work environments. This includes leveraging platforms that facilitate communication, project management, and file sharing.
• Encourage experimentation: Create an environment where experimenting with new digital tools and solutions is encouraged. This involves accepting that failure is a part of the learning process and providing a safe space for employees to test out new ideas.
• Lead by example: Leaders should demonstrate a digital mindset by actively engaging with digital technologies and practices. This sets a positive example for the rest of the organization and shows that embracing digital change is a priority at all levels.
• Promote digital literacy: Provide training and resources to help teams achieve a baseline literary. This includes understanding not just how to use digital tools, but also the underlying principles and potential impacts of digital technologies on the business. Understanding this new language is not only key to collaboration but participation.
• Encourage a digital culture: Cultivate a culture that supports digital transformation and the adoption of a digital mindset. This involves valuing flexibility, innovation, promoting curiosity, and a willingness to change in response to digital trends.

What we have been reading

• Tsedal Neeley and Paul Leonardi, Developing a digital mindset: How to lead your organization into the age of data, algorithms, and AI, Harvard Business Review Press, 2022.
• Errol Gardner, Norman Lonergan, and Liz Fealy, ‘How Do You Harness the Power of People to Double Transformation Success?’, EY and the University of Oxford, October 2022.
• Behnam Tabrizi, Ed Lam, Kirk Girard, and Vernon Irvin, ‘Digital Transformation Is Not About Technology’, Harvard Business Review, March 2019.
• Paul Leonardi and Tsedal Neeley on The Digital Mindset, Dare to Lead with Brené Brown podcast, December 2022.
• Sophia Matveeva, ‘Coding Isn’t a Necessary Leadership Skill — But Digital Literacy Is’, Harvard Business Review, July 26, 2022.
• Karim Lakhani, ‘AI Won’t Replace Humans — But Humans With AI Will Replace Humans Without AI’, Harvard Business Review, August 2023.
• Peter Weill, Companies with a Digitally Savvy Board Perform Better, MIT Center for Information Systems Research, 2019.

EU AI Act and data literacy

From February 2025, all organisations using or developing AI will require all staff to have a sufficient level of AI literacy in compliance with the EU AI Act. Simmons & Simmons has developed a three-tier multilingual training programme to help clients achieve compliance. You can learn more here.