Legal Industry Confronts Increasing ESG Demands, Integration of Generative AI, and Rebound to Office, Says Wolters Kluwer Survey

A major shift is underway in the legal industry, with increased demand for ESG (Environmental, Social, and Governance) services, a new wave of adoption of Generative AI (GenAI), and a strong trend toward in-office work, according to the 2024 Future Ready Lawyer Survey by Wolters Kluwer. The survey sheds light on key challenges and opportunities as law firms and corporate legal departments adapt to meet evolving client expectations and technological advancements. ESG Demand outpaces Preparedness Increasingly, the themes are those of environmental and social issues, with legal practitioners reporting a high growth in requests for ESG services. The survey reports that as many as 68% of respondents indicated they now see increased client demand for ESG competency, but there also remains an important gap in readiness: only 29% of law firms and 41% of in-house corporate legal departments report that their organizations are "very prepared" to meet increased ESG-focused advisory. Martin O'Malley, CEO of Wolters Kluwer Legal & Regulatory, described the future of the legal profession as "having an industry confident not only in its ability to master new and emerging technologies but also the systemic changes that follow. Adapting processes to support the use of AI and the rising demand for ESG remain critical areas of focus.". Many legal organizations are therefore stepping up to bridge this gap between the rising client expectations and their expertise on ESG. According to the survey, 56% of corporate legal departments and 45% of law firms have started some kind of ESG training for their teams, and 42% of law firms and 41% of corporate legal departments have already formed dedicated ESG units. These programs are focused on professional development in ESG issues, so lawyers will be equipped with the expertise needed to help clients in such areas. Generative AI Transforming Legal Operations Generative AI is transforming the legal industry fast by enabling lawyers to sift through a mountain of information and reduce hours spent on manual labor. The survey found that 76% of corporate legal department lawyers and 68% of lawyers working in law firms reported using GenAI at least once a week, with more than one-third reporting using it daily. Although the adoption of GenAI is growing, challenges arise with this. Among respondents, 37% of employees from law firms and 42% of employees in corporate legal departments found difficulty in integrating GenAI into their current systems and workflows. The integration issue prompts both law firms (58%) and corporate legal departments (73%) to plan to make a higher investment in AI within the next three years as they seek ways to use it more efficiently and effectively. Martin O'Malley said, "The future of the legal profession belongs to those who embrace technology with optimism and an unwavering commitment towards innovative client services.". It is changing the nature of day-to-day work and the kind of legal services provided. AI tools enable legal teams to rapidly analyze case law, draft documents, and conduct deep research, allowing them to focus on complex, high-value work. This trend highlights AI's potential as a strategic tool in improving both client satisfaction and operational efficiency. Shift Back to Office Reflects Evolving Workforce Dynamics Apart from facing new ESG and AI demands, this industry is experiencing increased office-based working. For example, while 31% of law firms prefer employees to report to office four or more days, the figure goes up at 77% in respect of corporate legal departments. This is part of a more general global trend. According to a report, in the United States, Italy, and Poland, for example, more than half of legal employees work full-time in the office; France and the Netherlands show similar trends, with 46% and 40%, respectively, of legal professionals spending at least four days in the office. Most organizations are adjusting work policies, and in-person collaboration has become very emphasized. Corporate legal departments tend to prefer the in-office presence for face-to-face communication that smoothes workflows and aligns teams. Law firms, which depend much on collaborative work when working on cases, will definitely need to be seen to have a presence at offices for team dynamics and interaction with clients. ESG, AI, and Office Policies: The Future Perspective As ESG expectations grow and GenAI is increasingly absorbed, in-office work itself is revitalized. Changes in the nature of legal work are therefore substantial; the key firms and departments dedicated to flexibility and learning seem best placed to respond positively. The latest survey from Wolters Kluwer shows that more legal professionals are looking for ways to stay "future-ready," adapting not just their technical skills but organizational strategies to meet the rapidly changing needs of an ever-evolving industry. The legal sector waits for a transformative future in order to boost ESG expertise and overcome integration challenges for GenAI, meeting worker expectations on hybrid work models. The major point of emphasizing adaptability, above all else, in terms of sustainability and technology, is a bigger change in legal practice-from long-standing practices to an extremely innovative and client-centric trend. Legal professionals will thus continue to evolve their trade, making their industry more sustainable, efficient, and collaborative. To sum up, the Wolters Kluwer 2024 Future Ready Lawyer Survey underscores the fact that the legal profession is at a crossroads: with immediate calls for ESG knowledge, GenAI-type technologies, and changing work arrangements. Organisations investing in these will not only respond to short-term client demands but will be better placed to deliver continued success in a complex, dynamic world.