The Cost of Doing Nothing: How Ignoring AI Could Put Your Team at a Competitive Disadvantage

In Robin AI’s 2023 State of Legal AI survey, just over half of respondents were focused on leveraging technology to improve efficiency and productivity. That number has jumped to almost 75% in 2024’s survey, showing a steep increase in recognition that legal tech can facilitate the creation of scalable business processes and help organisations unlock growth, amongst other benefits.

The case for legal AI: A natural fit for the legal sector

The push to adopt AI is often fueled by a desire to improve the quality, consistency and speed of work throughout any organization, ideally while reducing cost. With its reliance on document-heavy processes, the need for accurate language and high-speed execution, the legal sector is especially well-suited for AI integration.

Another major shift is evident in the Robin survey responses: in 2023, only 25% of General Counsels saw the potential for AI in their daily work. By 2024, almost all respondents recognized opportunities for Legal AI.

Our 2024 data also reveals that 50% of respondents have so far conducted a thorough review of the Legal AI market, while 19% have already completed a full, detailed analysis of how to implement these tools within their own departments.

 By contrast, just 5% of respondents had conducted such assessments in 2023. This year, every respondent had completed at least some level of analysis, highlighting the growing focus on legal AI solutions.

Key barriers to AI adoption

However, some companies, including many private markets firms, still face hurdles to embrace AI. Lauren Watson, Head of Product Marketing at Robin AI, explains that “change management is hard to get right across any technology transformation exercise. It requires vision, leadership, time and resources”.

Accuracy is another concern – particularly in legal AI –, explains Watson, but it can be remedied by having a “human-in-the-loop” approach. This is the case at Robin AI, which uses a combination of machine learning and human intelligence, with a team of over 80 legal experts in-house.

Watson adds that there is also a lack of understanding about the best use cases and applications of AI.

This gap is often due to a lack of foundational knowledge on AI capabilities and strategic alignment, meaning that leaders and teams are not fully aware of how AI can specifically benefit their business processes. 

Without real-world examples tailored to their industry, companies can struggle to picture how AI could be useful beyond basic automation or data analysis. This lack of clear, relevant use cases can lead to indecision and delays in adoption.

The Cost of Inaction

Delaying AI implementation may end up being costly for both firms and their investors. 

The most immediate drawback of slow adoption is unnecessarily high operating costs, as traditional business processes take more time — and time, of course, is money.

Another downside is the reduction in operational agility. Firms that rely entirely on manual work or on outdated tech, for instance for contract review or due diligence, may struggle to keep up with fast-paced investment and M&A activity, especially compared to those who successfully leverage AI. 

Waiting too long for any AI offering to mature or for the perfect solution may be costly, as competitors who embrace AI move ahead. Firms risk falling behind as the world becomes more AI-driven.

Giving Your Legal Team a Competitive Edge

In the case of legal AI, private markets firms can quickly reap rewards, for instance by leveraging AI-powered solutions that have already transformed the way firms approach their contract review.    

One example is private markets firm Investindustrial, based in London. Their high-volume contract review process was in need of greater optimisation, explains George Crummack, an associate at the company.

“Our team had a broader desire to understand and use AI-driven products, with a view to implementing solutions that would improve the velocity, consistency and accuracy of our work,” says Crummack. 

Partnering with Robin AI brought exactly that, enhancing “efficiency gains and time savings”.

 “We have growing confidence in the consistency and accuracy of Robin AI's review of legal documentation. We've freed up time in our department, all whilst ensuring work is consistently high quality," adds Crummack.

Blue Earth Capital is an independent global impact investment firm headquartered in Zug, Switzerland, but with operations across cities such as New York, London and Luxembourg.

Due to Blue Earth Capital’s exceptional growth, the demand from their global investment teams for prompt 24/7 support on routine legal work was becoming too challenging to fulfil with existing legal resources. 

The Blue Earth Capital team was increasingly spending more time on logistical admin, including following up on NDA reviews that were in progress and cross-checking for inconsistencies.

Amy Wang, head of private credit and founding member at Blue Earth Capital explains how adopting Robin AI has made their work lives easier.

“The 24/7 rapid service was a surprise, not having to wake up for people or wait for someone to wake up was game-changing. We now feel that there is always someone working to keep our global transactions moving forward,” says Wang.

Future-proof Your Firm with AI

Leaders in the private markets such as InvestIndustrial and Blue Earth Capital are live examples of successful AI adoption. Their teams save significant money and time today, streamlining their legal processes.

In an ever-more competitive landscape, not being at the forefront of AI adoption could translate into a long-term competitive disadvantage. 

For firms looking to avoid these pitfalls, it’s helpful to start exploring AI-powered applications now, carefully assessing strategic goals and examining real-world use cases. 

With AI already reshaping industries, the true cost of doing nothing is likely to unfold over the next 2-3 years, compounding as better models offer even higher upside to early adopters. The good news is, it’s not too late to get ahead.

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