From in-house legal job market trends to privacy index 2023, we bring you a collation of key updates for August 2023.
Tech & the Law 2023 Report: perceptions and priorities.
Thomson Reuters has released its Tech & the Law 2023 report, based on insights from 1,080 legal professionals in Australia and New Zealand. The report focuses on the impact of technology on efficiency, talent retention, and client service in the legal sector. It also explores emerging perceptions and concerns about generative AI. Key findings include:
- Legal professionals in private practice and corporate counsel are emphasising technology to improve operations and workflow, increasing their investment in this area.
- Both legal departments (52%) and law firms (58%) are prioritising cybersecurity and data protection.
- The absence of innovation is seen as a flight risk in private practice, where efficient processes are highly valued.
- Corporate counsel prioritises cybersecurity breaches and data risk mitigation.
- Success in technology implementation projects relies on the right technological fit and vendor compatibility.
- Some legal professionals are adopting AI for efficiency and cost reduction, but job security remains a concern for many.
Carl Olson, Vice President of Proposition for Asia and Emerging Markets at Thomson Reuters, highlights the growing importance of digital transformation and cybersecurity resilience in the legal sector.
Data breaches will cost firms more than money
In the context of advancing technology and escalating cybercrime, data is now regarded as the world’s most valuable resource, with law firms being prime targets for cybercriminals. Recent years have witnessed a surge in cybercrime in Australia, with five major data breaches occurring in the past year, each more severe than the last. The IBM Data Breach Report for 2022 revealed that 83% of organisations worldwide experienced multiple data breaches, affecting over 550 companies globally.
In Australia, a cyber-attack causing a four-week disruption to critical digital infrastructures could cost the economy $30 billion and result in the loss of more than 163,000 jobs, as reported in the 2020 Australia Digital Trust report. Notably, the legal sector ranks among the most targeted industries for cyberattacks. The consequences of a data breach are dire for law firms, potentially costing millions of dollars, tarnishing their reputation, and leading to the loss of clients.
Generation AI: Ready or not, here we come!
The report titled “Generation AI: Ready or not, here we come!” by Deloitte AI Institute and Deloitte Access Economics presents insights and advice based on research involving over 2500 Australian students and employees, along with academic research reviews. This research sheds light on Generation AI, the digitally native generation that grew up with AI-powered technology. They already use AI to enhance their study, work, and daily lives.
The report introduces the Digital Disruption Map, identifying industries in the Australian economy that will be significantly disrupted by Generation AI. Over $600 billion of economic activity is at risk of disruption. The report emphasises the need for organisations to harness the potential of Generation AI to drive productivity, innovation, and growth. It offers six key insights and seven recommended actions for businesses to navigate the era of Generation AI successfully.
Understanding current in-house legal job market trends
Corporate legal recruitment is influenced by various factors, including relocation, remuneration, and the time of year. Understanding market fluctuations is essential for both job seekers and companies. September to December is typically the most active period for legal job markets due to budget resets, end-of-year resolutions, and a sense of optimism. December, in particular, is busy as companies aim to have new hires start in the new year.
In contrast, July and August are the quietest months for legal recruitment, attributed to factors like school holidays, lawyers waiting for year-end bonuses, and a break after the financial year-end rush. Relocation among lawyers has become less common, possibly influenced by COVID-19 and property costs.
Salaries in the in-house legal sector increased notably in the last financial year, especially for junior to mid-level lawyers. However, as more lawyers enter the job market, salary growth is tapering off. Companies are sticking to budgets and may consider hiring junior lawyers or adjusting roles to fit their financial constraints, while experienced lawyers are maintaining their salary expectations, leading to reduced movement in the job market.
Deloitte Australia Privacy Index 2023 snapshot
The Deloitte Australia Privacy Index 2023 highlights the increasing scrutiny of privacy practices, the review of regulations and laws, and the rising sophistication of data breaches. Organisations, businesses, and government entities are urged to adapt rapidly to meet consumer expectations and comply with evolving regulations.
The report emphasises the need for positive change in data handling for all Australians and encourages collective efforts to create a safer data landscape. Key findings include:
- Government ranks highest in positive data handling practices, while Telecommunications and media rank lowest.
- 83% of survey participants have heightened privacy awareness due to recent large-scale data breaches, with 34% experiencing a significant increase.
- One-third of consumers have been impacted by a data breach in the past year, leading to feelings of vulnerability or anger among 69% of those affected.
- 80% of respondents believe organisations should be held accountable for compensating data breach victims individually.
Age demographics reveal varying levels of concern, with younger individuals slightly less concerned about data protection (82%) compared to the overall agreement rate (90%). In contrast, older individuals show heightened concern, with a 96% agreement rate, reflecting their increased worries about data security and privacy.
About Law Image: Law Image is a leading document management company. Founded in 1999 and headquartered in Melbourne, we have offices in Sydney, Brisbane, and Perth. Law Image supports law firms and government departments across Australia with end-to-end legal document management solutions.
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