"Hyuk says lawyers and legal professionals spend 60% of their time on administrative work like file organization, back-office stuff, and verification (which I assume means in part verifying cites provided by GenAI output). Much of this stuff is nonbillable; Hyuk's findings are generally consistent in this regard with what Clio's yearly Legal Trends Reports have consistently found. Forty percent of lawyer time according to Hyuk is spent on the legal work lawyers really like doing: the research and intellectually challenging activities."
"Yet, according to Hyuk, investors in legal tech vendors focus 70% of their dollars on those that provide the sexy stuff: research tools, contract AI, and e-discovery. Many of these tools are based on GenAI. He notes that only six well-known legal tech providers focus on the 60% while over 15 providers focus on the 40%. He asks the very legitimate question: "Why this massive gap between what lawyers do and what the industry builds?""
Lawyers and legal professionals spend roughly 60% of their time on administrative tasks such as file organization, back-office work, and verification, much of which is nonbillable. The remaining 40% of time is devoted to legal research and intellectually challenging legal work. Investors direct about 70% of legal tech funding toward research tools, contract AI, and e-discovery, leaving relatively few vendors focused on automating administrative work. AI and automation can handle many administrative tasks accurately, while current GenAI-driven research tools remain error-prone. The mismatch between time spent and investment priorities produces inefficiencies and a clear opportunity to shift funding toward administrative automation.
Read at Above the Law
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