FTI Consulting and ACC Singapore Report Reveals Guidance Gap for AI in Legal Departments in Asia

In Singapore, on February 6, 2024, the collaborative efforts of global business advisory firm FTI Consulting, Inc. and the Association of Corporate Counsel Singapore unveiled the findings of their latest report, titled A New Era of Legal Advisor: 2024 In-House Counsel – Perspectives from Asia. The study highlights the transformative changes occurring within legal departments worldwide, particularly concerning new risks and the adoption of artificial intelligence (AI).

Widespread AI Use with Insufficient Guidance

The report reveals that an overwhelming 95% of surveyed in-house legal counsels in Asia employ generative AI to tackle a variety of legal tasks—data processing, risk identification, regulatory management, and sanctions screening being among the most common applications. Despite this high adoption rate, there's a notable gap in guidance; 65% report a lack of sufficient company directives on the use of AI, and 45% indicate the absence of specific third-party risk assessments to address security and operational concerns associated with these technologies.

Legal Counsel's Evolving Role

The role of general counsel or senior in-house legal advisors in Asia is expanding beyond traditional legal expertise. Today, they are expected to be savvy business advisors capable of navigating a complex macroeconomic, regulatory, and geopolitical landscape. The report outlines key areas for 2024 such as AI, cybersecurity, regulatory scrutiny, investigations, and geopolitics with sanctions. These priorities underscore the pressure legal professionals face to stay informed and effectively manage emerging risks.

Key Survey Findings

The study provides several critical insights:

• A significant 64% of participants agree that more proactive measures are required to reduce cybersecurity risks;
• Even though many are confident in preparing for legal risks, fewer feel prepared to respond to incidents that have already occurred;
• A major concern is geopolitical tensions disrupting operations, with 58% indicating that their companies have prepared for such events;
• Data protection stands out as a paramount regulatory concern for the following year, according to over half of the respondents;
• In the realm of internal investigations, financial misconduct tops the list of causes.

This illuminating report serves as a crucial tool for legal officers in Asia, providing a deep dive into the profound challenges they face while highlighting opportunities for growth and adaptation within their dynamic roles.

About FTI Consulting

FTI Consulting, Inc. is recognized globally for its comprehensive advisory services that assist organizations in navigating change, mitigating risks, and resolving disputes across multiple domains, including financial, legal, operational, political & regulatory, reputation, and transactions. With a workforce spanning over 8,000 professionals in 31 countries, the firm accrued $3.03 billion in revenues during 2022. The extensive knowledge and experience of FTI Consulting are indispensable for clients looking to flourish amidst complex business hurdles.

AI, Legal, Guidance