In the rapidly evolving landscape of legal technology, understanding the return on investment (ROI) for generative AI (GenAI) is crucial. Legal IT personnel are increasingly tasked with quantifying the benefits and justifying the costs of implementing GenAI solutions within their organizations. Let’s explore how to navigate this complex terrain.
Explore Key Metrics
It has been said, “If you aim for nothing, you’re going to hit it.” One of the first steps in evaluating the ROI of GenAI is identifying what you’re trying to achieve, what you’re trying to solve, or what pain point is being addressed. These essential metrics and key performance indicators (KPIs) are crucial in knowing if you met the goal or if you are WAY off and need to course-correct. Metrics such as time saved, error reduction, and client satisfaction can provide a clear picture of how GenAI is enhancing your operations or solving a business need. Metrics don’t just happen. You have to be intentional and make the time to measure before, during, and after you launch a GenAI initiative.
Case Studies
Some people say they just want to see the data. Others say they want to hear real stories of how it is used by real people. I say both are critical to determining your ROI of GenAI. Real-world examples offer invaluable lessons. Plan to gather real stories (good, bad or ugly) from the individuals in the GenAI initiative. Share these with the group. You will be amazed at how one person’s insight or discovery spurs others on to think more creatively. Getting the real use case scenarios from people and making them a part of the GenAI initiative will catapult your KPIs and essential metrics into hyperdrive. Don’t assume people will know the best way to use the new GenAI solution. These stories will showcase the tangible benefits and transformative potential of GenAI in your firm.
Tools and Techniques
In addition to gathering stories, use cases, and feedback, leverage the GenAI tool(s) to gather, track, and analyze the performance of GenAI applications. Most GenAI solutions have built-in telemetry tools to provide insight into usage and performance.
Best Practices
Measuring the impact of anything is an iterative process of knowing where you are starting, tracking where you’re going, evaluating/course correcting, then doing it all again and again to give you a clear picture of the impact of the GenAI solution. It is not a one-pass effort. It requires identifying the goals of the initiative, planning metrics that align with those goals, establishing a baseline (knowing where you’re starting), measuring (hard data and anecdotal data), evaluating what it means and if you are moving in the right direction, making adjustments along the way, repeating the entire cycle at least once (but likely multiple times), and evaluating with every new set of gathered data to see what can be learned. At the end of this process is the final piece – translating that into ROI with numbers and percentages backed by role-based real stories of realized benefits from the GenAI solution. All of this requires a strategic approach.
Conclusion
The biggest regret I hear from teams pushing out a new solution, process, workflow, or technology like GenAI is that they neglected to take advantage of the power of adoption and leadership buy-in that comes from the proper use of metrics. Metrics don’t happen on their own. Be intentional. Measure throughout. Seek help when needed to understand how the gathered data aligns with the business objective. GenAI investments can be substantial, and the direct correlation of the expense to the benefit is not always clear. Many are investing with the hope of realized benefits, but by measuring and analyzing, you can be armed to show true ROI. Organizations should know, and many require, that you show the direct benefit to the business of these types of investments.
If you’re rethinking how your firm measures impact, contact us to see how our solutions can help you build associates who are ready to deliver value sooner.
About the Author
Kenny Leckie
Senior Consultant
In his role as Senior Consultant, Kenny provides thought leadership and consulting to the legal community in areas of information security/cybersecurity awareness, change management, user adoption, adult learning, employee engagement, professional development, and business strategy. He also works with clients to develop and deploy customized programs with an emphasis on user adoption and increased return on investment. Kenny is a Prosci Certified Change Practitioner, a Certified Technical Trainer and has earned the trust of firms across the US, Canada, The UK, Europe and Australia.
Kenny has more than thirty years of combined experience as a law firm Chief Information Officer, Manager of Support & Training, and now consultant providing him with a unique point of view and understanding of the challenges of introducing change in law firms. He combines his years of experience with a strategic approach to help clients implement programs that allows focus on the business while minimizing risk to confidential, protected, and sensitive information. Kenny is an author and speaker and a winner of ILTA’s 2018 Innovative Consultant of the Year.