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The inevitable impact of technology in the legal profession is undeniable. Generative AI may have revolutionized business verticals globally, but the legal business is waiting for a much deeper influence, or we may say, it is just around the corner. It is no longer about creating legal documents using Gen AI.
Melento's (formerly SignDesk's) 2024 survey of 500 legal professionals found 43% who have adopted some form of digital contracting and have noticed significant benefits, and 18% who have opted for fully automated CLM systems have improved their operational efficiency by 40%.
A recent Deloitte report backs up the claim that end-to-end contract automation reduces cycle times by 30–40%. Gartner highlights 40% improved operational efficiency for legal teams leveraging AI-driven CLM (Contract Lifecycle Management) systems.
The shift is beyond enhancing efficiency. It is now time to strategically free lawyers from routine processes and bring their focus back on client-based approach, growth strategy, and critical judgment and advisory.
Why Agentic AI is a Game-Changer for Legal Practice
The digital initiative in the legal domain requires planning, deciding, and acting. The legal teams globally are tied by obligations to speed up deliverables and remain compliant without incurring extra cost.
The legal department is now looking for solutions that can negotiate terms, flag hidden risks and initiate compliance steps. But all must be under the supervision of human legal advisors. The next transformation in the legal profession is thus Agentic and Collaborative. AI and automation are bridging these gaps and improving agility. Unlike traditional AI, which is reactive, Agentic AI acts proactively based on goals and constraints.
Agentic AI refers to intelligent systems that can take autonomous actions within pre-defined legal and ethical boundaries, such as negotiating terms or initiating compliance workflows without continuous human input.
Global enterprises have already piloted Agentic AI solutions for contract negotiation, compliance risk management, and client intake automation. And the results that unfold are smarter workflows and lawyers being strategic advisors than merely being administrative gatekeepers.
Key Drivers of Adoption Across Jurisdictions
The following reasons are driving global enterprises towards digital adoption.
- Speed and Agility – Reduced time from weeks to hours for contract processing and execution using AI-driven workflows.
- Compliance and Audit Readiness – Improved real-time logs and version control to ensure global regulation adherence like GDPR, CCPA, and sector-specific regulations using automated systems.
- Operational Savings – Enhanced ROI by reducing expenses in printing, courier, and administrative costs.
These efficiencies matter for multinational organizations where cross-border transactions and regulatory complexity multiply risks. Agentic AI helps legal teams navigate these complexities at scale.
Skills Future-Ready Lawyers Must Build
Several research studies conducted recently indicate that AI is not here to replace lawyers or other professionals. They will empower and enhance the efficiency of the legal professionals. By implementing AI in modern legal practice, lawyers will be able to collaborate and work more efficiently. The following are the skills that Future-ready lawyers must focus on and develop.
- Technology Familiarity – Understand the contextual use of AI and implement it to add value, while considering its ethical boundaries.
- Governance and Risk Awareness – Understand the AI capabilities and set clear AI-usage policies to ensure compliance with global data protection laws.
- Interdisciplinary Collaboration – Collaborate with IT, compliance, and business teams to design effective AI governance.
AI Ethics: A Critical Global Priority
As legal AI adoption accelerates, the importance of ethics cannot be overstated. Bias in AI models and a lack of explainability can lead to regulatory and reputational risks, making fairness and transparency critical for adoption.
To address these concerns, global frameworks like the EU AI Act and OECD AI Principles emphasize accountability, human oversight, and transparency for high-risk AI applications.
Legal teams must implement governance models that ensure compliance with these principles, reduce algorithmic bias, and maintain trust by keeping human judgment at the center of AI-driven workflows.
Global Regulatory Guardrails Shaping AI
The regulatory landscape is evolving worldwide:
The American Bar Association (ABA) highlights the ethical implications of AI in the legal field. According to The ABA's Model Rules of Professional Conduct, lawyers must remain well-informed about the benefits and risks associated with relevant technology, including AI.
- EU AI Act – Establishes risk-based rules, prohibiting certain AI uses, imposing strict requirements on high-risk AI, mandating transparency for limited-risk AI and placing minimal obligations on low-risk AI.
- US Initiatives – America's AI Action Plan focuses on accelerating innovation by reducing regulatory burdens, fast-tracking AI infrastructure and promoting AI diplomacy.
- Global Digital Data Protection Laws - Digital Data Protection laws in regions such as Latin America, India, and Brazil are examining how AI development and usage can be integrated into digital practices. At the same time, they aim to ensure data privacy and maintain customer trust in the AI-driven digital ecosystem.
From Digital to Agentic: The Next Global Leap
Digital contracting adoption offers lessons for AI integration. For example:
- In the UK, law firms are deploying AI-enabled document review, reducing due diligence time by 35%.
- In Germany, multinational companies are adopting AI-driven compliance monitoring, resulting in faster GDPR readiness and lower regulatory penalties.
- Companies in India are digitizing 90% of workflows in half a month, reducing contract execution time by 42%, leveraging AI-enabled CLM, and saving 80% missed deadlines and real-time visibility across 200+ contracts.
Endless success stories are emerging globally, where AI-powered legal operations are enabling faster deal closures and higher compliance confidence. Furthermore, Agentic AI delivers autonomous planning, negotiation assistance, and compliance intelligence, positioning legal teams as strategic drivers of global business growth.
The Road Ahead: Human-AI Collaboration
The future of law is preparing for Agentic AI, a collaborative partnership between human expertise and intelligent systems. While lawyers will provide strategy, judgment, and advocacy, AI will deliver scale, speed, and actionable insights. The collaboration will ensure strict regulatory compliance, improving trust, accountability, and fairness.
The legal team can take the following steps to ensure its AI readiness,
- Conduct an AI-readiness audit: Identify workflows that benefit from automation without regulatory compromise.
- Develop governance frameworks: Align AI use with GDPR, CCPA, and emerging global AI standards.
- Upskill teams: Invest in technology literacy, data protection awareness, and ethical AI training.
For legal professionals worldwide, the takeaway is clear: embrace the teamwork between man and machine and build technological literacy, regulatory fluency, and ethical resilience sooner rather than later. Redefining the scope of AI will elevate the business with better resilience.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.