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The CXO's AI Dilemma: How Legal Teams Are Winning Both Cost and Strategy Games

The CXO's AI Dilemma: How Legal Teams Are Winning Both Cost and Strategy Games

Legal Team

Leading legal departments are cracking the GenAI code - achieving up to 30% cost reduction while becoming more strategic, not less. The winning formula combines smart AI deployment across self-service (3-5% savings), internal processes (10-15% savings), and external spend (5-10% savings), enabling teams to maintain size while dramatically expanding their strategic impact. It's not an efficiency-versus-strategy choice anymore - it's about using one to fuel the other.

Source: Deloitte

The False Choice

Legal departments implementing GenAI face a seeming dilemma: reinvest time savings into strategic work or pursue cost reduction. Yet leading teams are achieving both, securing up to 30% cost savings while expanding their strategic influence.

The Cost-Saving Revolution

Internal optimisation leads the charge with 10-15% savings through enhanced productivity and streamlined structures. Business self-service follows, contributing 3-5% through AI-powered knowledge management. Smarter sourcing adds another 5-10% by reimagining the internal-external work balance.

Strategic Evolution

Forward-thinking teams are channeling these efficiencies into high-impact initiatives: IP strategy development, product launch support, and regulatory compliance enhancement. They're transforming from cost centres to strategic partners while maintaining current budgets.

The Investment Reality Check

Success requires thoughtful technology deployment - GenAI platforms, document management systems, and legal front door solutions. Yet teams offset these costs by eliminating redundant tools and simplifying their tech stack.

The Bottom Line

The future belongs to legal departments that maintain their size while dramatically expanding their strategic capacity. It's not about choosing between efficiency and impact - it's about using one to enable the other, creating a legal function that's both leaner and more strategically vital than ever.

Read More: Deloitte

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