Following National Advertising Division Challenge, MOSH Voluntarily Discontinues Certain Claims for Mosh Protein Bars

Posted on February 15, 2024 by Operations Team

New York, NY – February 15, 2024 – Following a challenge brought by the BBB National Programs National Advertising Division as part of its routine monitoring program, MOSH PBC discontinued certain advertising claims used to promote its Mosh Protein Bars.

The National Advertising Division (NAD) challenged the claim that Mosh Protein Bars are:

“Expertly formulated to crush cravings *and* give you a mental boost, wherever and whenever you need it most. Plus, set you up for long-term brain health. All in one little bar;” and
The implied claim that consuming Mosh protein bars will eliminate brain fog and provide meaningful and long-term cognitive benefits.

Further, during the inquiry, MOSH stated that it would make a modified claim: “Formulated with adaptogens, superfoods and vital brain nutrients.”

MOSH informed NAD that it permanently discontinued the challenged and modified claims. Therefore, NAD did not review the claims on their merits and will treat the claims, for compliance purposes, as though NAD recommended they be discontinued.

All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.

About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business. 

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Jennie Rosenberg
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BBB National Programs
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In NAD Fast-Track SWIFT Case, Performance Designed Products LLC Voluntarily Modifies or Discontinues Claims for Motion Supported Game Controllers

Posted on February 13, 2024 by Operations Team

New York, NY – February 13, 2024 – BBB National Programs’ National Advertising Division has closed a Fast-Track SWIFT challenge initiated by ACCO Brands USA, LLC regarding advertising by Performance Designed Products LLC (PDP) for certain game controller claims.

Fast-Track SWIFT is an expedited process designed for single-issue advertising cases brought to the National Advertising Division (NAD).

ACCO argued that a number of PDP’s controllers do not support motion control, despite being labeled as having that function. Motion control is a feature that allows a player to play certain games that support the function by moving the entire controller, rather than manipulating the sticks and buttons on the controller.

Although PDP argued that NAD lacks jurisdiction to hear this case on several grounds, NAD determined that it does have jurisdiction.

PDP informed NAD that it has:

Voluntarily discontinued, or is in the process of discontinuing, any claims that its controllers have motion control for those controllers that lack this function; and
Voluntarily modified its product labels and website product pages to clearly and conspicuously disclose that it does not have motion control by adding “Motion Controls Not Supported.”

Therefore, NAD did not review the claims on their merits and will treat the discontinued and modified claims, for compliance purposes, as though NAD recommended their discontinuance or modification.

In its advertiser statement, PDP stated that it “previously communicated to NAD that it undertook corrective actions to address an acknowledged packaging error on certain of its products prior to its receipt of a filed challenge. For this reason, PDP respectfully disagrees with the assertion that it chose to voluntarily discontinue or modify the challenged claims as a result of the proceedings.”

About the National Advertising Division: The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. The National Advertising Division reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.

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Jennie Rosenberg
Media Relations
BBB National Programs
press@bbbnp.org

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Lawyers regularly using generative AI doubles in the last six months. Yet, lawyers demand AI that is grounded on legal sources

Posted on February 11, 2024 by Operations Team

Survey suggests a quarter of UK lawyers use generative AI tools, and a third are planning to. Whilst concerns still linger, lawyers say AI that is grounded on trusted legal content would be a welcome solution.

LONDON, 12 February 2024 – Today, LexisNexis Legal & Professional^®, a leading global provider of legal information and analytics, has revealed that 26% of legal professionals are currently using generative AI tools on at least a monthly basis – up from 11% in July 2023. A further 35% of respondents unveiled plans to use the technology in the near future.

The LexisNexis survey of 1,200+ legal professionals in the UK found that substantially more than half (62%) of law firms have already made changes to their day-to-day operations as a result of generative AI. These changes include launching AI-powered products for internal use, delivering AI-related training for staff, the hiring of AI experts and developing policies on the use of generative AI.

This continued enthusiasm for and adoption of generative AI tools is reflected in the areas legal professionals say are top priority opportunities for the technology. 91% want to use AI for time-saving tasks like drafting documents, 90% for researching matters and 73% for streamlining communication tasks such as writing emails. More complex tasks such as contract analytics (53%), connecting generative AI to case management (50%), or real-time comparisons of law across jurisdictions (45%) were also high on the priority list.

The survey found that the biggest hurdles to AI adoption were concerns over hallucinations (57%), security (55%), and a lack of trust in the current free-to-use technology (55%). However, if legal AI solutions were grounded in reliable legal content sources with linked citations to the case, legislation or content used to create the response, two-thirds (64%) of respondents said they would be somewhat or completely confident using a solution of this description. This confidence rose to 73% in large law firms.

Lexis+ AI, the new generative AI solution from LexisNexis, has been built specifically to address these concerns. Grounded in the vast LexisNexis legal intelligence database, Lexis+ AI results are always backed by verifiable, citable authority or source. It has also been built to meet the most popular use-cases for AI.

“The appetite for generative AI technology in the legal sector is unprecedented,” says Stuart Greenhill, Senior Director of Segment Strategy at LexisNexis. “Lawyers from all backgrounds are jumping at the chance to make the most of its time-saving potential. However, the demand is growing in the legal sector for generative AI tools that are grounded and trained on legal sources and can provide a higher-level of transparency for all responses generated.

Notes for editors

The report can be found here: https://www.lexisnexis.co.uk/research-and-reports/lawyers-cross-into-the-new-era-of-generative-ai.html

About LexisNexis Legal & Professional

LexisNexis Legal & Professional^® provides legal, regulatory, and business information and analytics that help customers increase their productivity, improve decision-making, achieve better outcomes, and advance the rule of law around the world. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis^® and Nexis^® services. LexisNexis Legal & Professional, which serves customers in more than 150 countries with 11,300 employees worldwide, is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers.

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Name: Matthew Leopold
Email: matthew.leopold@lexisnexis.co.uk
Job Title: Head Of Brand And Comms

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NARB Recommends Comcast Discontinue Use of “10G” When Referring to the Name of its Network

Posted on February 9, 2024 by Operations Team

New York, NY – February 5, 2024 – A panel of the National Advertising Review Board (NARB), the appellate advertising body of BBB National Programs, recommended that Comcast Cable Communications, LLC discontinue use of the term 10G in the product service name “Xfinity 10G Network” and when 10G is used descriptively to describe the Xfinity network. The use of 10G in a manner that is not false or misleading and is consistent with the panel decision (e.g., in a manner that does not misleadingly describe the Xfinity network) is not precluded by the panel recommendations.

This recommendation is consistent with the conclusion in another filed by Comcast following the National Advertising Division’s (NAD) decision in a similar (but not identical) advertising challenge brought by Verizon Communications Inc. (NAD Case No. 7213; NARB Panel 326).

The advertising at issue in this appeal had been challenged by T-Mobile US, Inc. Following NAD’s decision (Case No. 7212), Comcast appealed NAD’s finding that 10G as used by the advertiser communicates express messages that are unsubstantiated. T-Mobile cross-appealed NAD’s determination that Comcast provided a reasonable basis for its “Next Generation” claim and the implied claim that Comcast had already achieved a major technological revolution.

In agreement with NAD, the NARB panel determined that Comcast should discontinue use of the term 10G, both when used in the name of the network itself (“Xfinity 10G Network”) as well as when used to describe the Xfinity network.

In so finding, the NARB panel concluded that 10G expressly communicates that the Xfinity network provides subscribers with 10 Gbps speeds. The panel concluded that the substantiation Comcast relied on to support this claim was not sufficient because of limitations concerning Comcast’s Gigabit Pro service tier, including the difficulty of finding the availability of the service on the Xfinity website, the possible need to obtain local government permission to install the necessary fiber, and the relatively high cost of the service. In addition, the panel noted that Comcast had not disclosed the number of consumers who subscribed to that tier service.

Further, the NARB panel agreed with NAD’s conclusions that Comcast has provided support for its Next Generation claim and, as incorporated in the arguments for such, the implied claim that Comcast had already achieved a major technological revolution based on its substantial investment in the Xfinity network that has resulted in significant improvements in key metrics of interest to consumers.

Comcast stated that although it strongly disagrees with NARB’s analysis and approach, Comcast will comply with NARB’s recommendations, and “reserves the right to use the term ‘10G’ (or ’Xfinity 10G’) in a manner that does not misleadingly describe the Xfinity network itself.”

All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive.

About the National Advertising Review Board (NARB): The National Advertising Review Board (NARB) is the appellate body for BBB National Programs’ advertising self-regulatory programs. NARB’s panel members include 85 distinguished volunteer professionals from the national advertising industry, agencies, and public members, such as academics and former members of the public sector. NARB serves as a layer of independent industry peer review that helps engender trust and compliance in NAD, CARU, and DSSRC matters.

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National Advertising Division Recommends Kimberly-Clark Discontinue Huggies “#1 Best Fitting Diaper” Claims and Modify Others

Posted on February 8, 2024 by Operations Team

New York, NY – February 8, 2024 – In a challenge brought by The Procter & Gamble Company (P&G), BBB National Programs’ National Advertising Division recommended that Kimberly-Clark Inc. (K-C) discontinue claims that Huggies is the “#1 Best Fitting Diaper” and modify its advertising to, among other things, avoid conveying that its diapers have a superior fit over all diapers on the market, including those sold by P&G under its Pampers brand.

The National Advertising Division (NAD) also concluded that the advertising did not reasonably convey that all Huggies brand diapers provide superior leakage protection.

P&G challenged K-C’s television commercials, print, digital media, and website claims that K-C’s diapers are the “#1 Best Fitting Diaper.”

NAD concluded that some consumers may reasonably take away the message that the “#1 Best Fitting Diaper” claims are true of all Huggies diapers rather than the Little Movers or Little Snugglers products. NAD noted that K-C did not provide any evidence of the superior fit of Huggies-branded diapers other than Little Movers.

With respect to Little Movers, NAD determined that K-C’s study did not provide a reasonable basis for its #1 diaper fit claims and recommended discontinuance of the claims.

NAD further recommended that K-C modify its advertising to avoid conveying the following messages:

All Huggies branded diapers provide a superior fit versus all diapers on the market.
Because Huggies diapers have the [“most curves”] [a “curved and stretchy fit”], they will provide a better fit/better conform to baby’s shape during wear, than other diapers on the market.
Because Huggies diapers have the [“most curves”] [a “curved and stretchy fit”] when stretched and laid flat they will provide a better fit/better conform to a baby’s shape during wear than other diapers on the market.
Huggies Little Movers diapers provide superior fit versus all diapers on the market.

Regarding leak protection claims, NAD determined that K-C’s commercial and website do not reasonably convey a message of superior leakage protection versus other products.

Some variations of the challenged #1 claim appear in the context of a side-by-side comparison of the Huggies diaper with a Pampers diaper. The comparison depicts an open Huggies diaper next to a Pampers diaper. Curved dotted lines are drawn to the left and right of the Huggies diaper, highlighting its curved sides.

While NAD determined that, independent of the #1 Diaper Fit claims, the display of the diapers side-by-side did not convey a superiority message requiring support on K-C’s website and in the Little Movers commercial, it recommended that K-C modify the side-by-side comparison so that the dotted lines are used to depict equivalent parts of each diaper. During the proceeding, K-C voluntarily agreed to modify the dotted lines that appear on the side-by-side comparison to more accurately represent the Pampers’ diaper absorbent core.

NAD further recommended that K-C modify the side-by-side comparison in the Little Snugglers commercial, with the claim that “only Huggies has the most curves to fit your delicate skin,” to avoid conveying the message that Huggies have a superior fit due to having more curves.

In its advertiser statement, K-C stated that it “will comply with NAD’s recommendations” and that it “respectfully disagrees with NAD’s conclusions related to the #1 fit claims.”

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Jennie Rosenberg
Media Relations
BBB National Programs
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National Advertising Review Board Recommends Mint Mobile Discontinue or Modify Certain Claims for its Wireless Service

Posted on February 8, 2024 by Operations Team

New York, NY – February 8, 2024 – A panel of the National Advertising Review Board (NARB), the appellate advertising body of BBB National Programs, recommended that Mint Mobile, LLC:

Discontinue promoting its plans using a cost-per-month price or modify such claims to disclose the required prepaid or upfront total cost of the plan;
Discontinue the claim that it “cut out the cost of retail service and passed those sweet savings directly to you”; and
Discontinue certain social media posts that conveyed misleadingly disparaging claims about Verizon’s services and business practices.

The advertising at issue had been challenged by Verizon Communications Inc. before the National Advertising Division (NAD). Following NAD’s decision (Case No. 7231), Mint Mobile appealed NAD’s recommendations.

Mint Mobile offers prepaid phone plans, which, unlike plans offered by Verizon and other major wireless carriers, require customers to pay upfront before receiving service.

The NARB panel determined that in connection with Mint Mobile’s advertised $15/mo. Promotional plan for its Unlimited service, it failed to consistently clearly and conspicuously disclose that consumers are required to prepay the entire $45 for three months of service. Accordingly, the panel recommended that it clearly and conspicuously disclose the required prepaid or upfront total cost of its plans across all advertising when promoting a plan with a cost-per-month price. The NARB panel did not agree with NAD’s recommendation that the disclosure must be part of the main claim or in a similar font as the main claim in order to be sufficiently conspicuous.

The NARB panel also recommended that Mint Mobile discontinue the claim that it “cut out the cost of retail service and passed those sweet savings directly to you” because it did not provide evidence demonstrating that it “passes along” any cost savings to consumers. The NARB panel noted that nothing in its decision precludes Mint Mobile from making truthful and non-misleading claims regarding its business model.

The NARB panel also concluded that Mint Mobile did not adequately support certain social media posts that utilized misleadingly disparaging phrases and recommended that it discontinue the claims:

“Ver!zon Victim finally catching on to their shadiness.”
“Ver!zon employee trying to convince you that paying for streaming services you used to get for free is a good thing.”
“POV: “Ver!zon distracting us so we don’t realize they are now charging for perks.”
“Ver!zon Victim, “Beware of the Bundlef*!”
“What a Bundlef*! “Ver!zon’s ‘perks’ are now on you. Don’t let them stream you along.”

However, the NARB panel agreed with Mint Mobile that the phrases “#verizonsucks” and “Bundlef*!,” as standalone phrases, can be viewed as the advertiser’s opinion and puffery.

Mint Mobile stated that it would comply with the panel’s recommendations, although it disagrees with the panel’s recommendation regarding certain social media post claims. Mint Mobile also noted it appreciates the panel’s clarification that its disclosures of the total prepaid cost of its plans need not “be part of the main claim or in similar font as the main claim in order to be sufficiently conspicuous.”

All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive.

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Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations

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Edvisors Releases Their Comprehensive 2024-2025 FAFSA® Guide as Students Navigate a Tough FAFSA Season

Posted on February 7, 2024 by Operations Team

Las Vegas, NV – Edvisors, a leading source of expert information on college financial aid, announces the release of its 2024-2025 FAFSA Guide, providing crucial insights and updates to students, parents, and school counselors navigating what is one of the most challenging years for FAFSA (Free Application for Federal Student Aid) applicants.

The 2024-2025 FAFSA was released at the end of 2023, and this year the application looks different than the previous years due to changes implemented based on the FAFSA Simplification Act. Many changes are highly visible to students and families as they work through the application. Changes such as the retirement of the expected family contribution (EFC) and the introduction of a new index to aid calculations: the Student Aid Index (SAI). Edvisors’ guide and resources aim to demystify the complexities introduced by these changes, ensuring applicants can successfully complete the process.

“A perfect storm of regulatory updates and economic pressures has made this FAFSA season particularly daunting,” said Elaine Rubin, Director of Corporate Communications at Edvisors. “We understand that completing the FAFSA can feel overwhelming, especially with recent changes and delays that are impacting college decisions and financing. Our goal in releasing this comprehensive guide is to equip families with the knowledge and tools to navigate these changes successfully.”

The Edvisors 2024-2025 FAFSA Guide will highlight critical updates, including:

A breakdown of substantial changes due to the FAFSA Simplification Act.
An explanation of the SAI and its implications for applicants.
How to determine and identify FAFSA contributors within complex family dynamics.
Navigating the latest FAFSA news to ensure students and families know what to expect as far as processing and delays.

In addition to the written guide, Edvisors is also providing a video demo walkthrough, offering a step-by-step visual aid for those who want to preview the application before diving in. These resources are part of Edvisors’ continued commitment to ensure that high-quality, accessible financial aid information is available to everyone looking to invest in their educational future.

The Edvisors 2024-2025 FAFSA Guide is available now at https://www.edvisors.com/student-loans/fafsa/filing-the-fafsa/

The Edvisors 2024-2025 FAFSA Walkthrough is available on Edvisors’ YouTube Channel

In addition, Edvisors invites students to check out the Student LIFE Blog to stay up to date on the latest FAFSA updates.

About Edvisors: For 20 years we have been known as one of the largest and most trusted resources to help students find their path to success. Everyone needs to find their own path, and we know that first-hand. We work to provide information from both our professional and firsthand experiences, to help individuals through college and beyond. Every year, millions of students and their families turn to the Edvisors.com, for timely, accurate information, advice and tools that help them confidently make the best decisions about paying for college. Founded in 1998, Edvisors is based in Las Vegas, Nevada. More information can be found at www.edvisors.com.

Contact Information

Name: Elaine Rubin
Email: erubin@edvisors.com
Job Title: Director of Corporate Communications

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Privacy Watchdog Ensures Indeed and Glassdoor Adhere to Digital Advertising Privacy Best Practices

Posted on February 6, 2024 by Operations Team

McLean, VA – February 6, 2024 – BBB National Programs’ Digital Advertising Accountability Program (DAAP) has brought job search platform Indeed Inc. and employer-review platform Glassdoor LLC, which both operate under Recruit Holdings Co., Ltd., into compliance with the Digital Advertising Alliance’s (DAA) Self-Regulatory Principles for online interest-based advertising (IBA).DAAP’s investigation into Indeed’s website, which was the result of a consumer complaint, revealed noncompliance with the DAA Principles’ Transparency Principle for first-party publishers like Indeed and Glassdoor who allow third parties to collect user browsing behavior for IBA purposes. Though the consumer complaint was related to Indeed, given that Indeed shares infrastructure with Glassdoor, DAAP conducted its investigation on both platforms.

Identified issues included links in the footer related to privacy and user control of data not linking users directly to information relevant to the company’s DAA or IBA-related obligations, descriptions of third-party IBA practices scattered throughout the policies instead of one cohesive place, and no statement of adherence to the DAA Principles. In the company’s mobile apps, DAAP discovered that enhanced notice (that is, a direct link to a clear disclosure of IBA practices) was also not present in the times or places prescribed in the Transparency Principle.

Inquiry Response

In response to DAAP’s inquiry, Indeed and Glassdoor conducted comprehensive reviews for compliance with the DAA Principles, identifying areas for strengthening.

The companies collaborated with DAAP on the following:

Enhanced Notice for Website Data Collection

Updated website footer links: Indeed’s “Privacy Center” now reads “Privacy Center and Ad Choices,” and Glassdoor’s “Privacy & Cookies” is now “Privacy & Ad Choices”
Added an “Ad Choices” tab to the HR Tech Privacy Center landing page, directing users to a consolidated IBA-specific disclosure

Cross-App Data Collection Compliance

Authorized third-party collection in their mobile apps
Added an “Ad Choices” website header tab on the HR Tech Privacy Center landing page to their privacy policies, ensuring easy access to the IBA disclosure from app store pages within two clicks
Enabled users to view the Ad Choices page within the application through privacy settings

In their respective statements, the companies provided:

Indeed: We are committed to the success of job seekers and employers and strive to be transparent about our privacy policies and practices. We appreciate the opportunity to participate in DAA’s Accountability Programs and their commitment in helping us comply with their Self-Regulatory Principles for Online Behavioral Advertising.
Glassdoor: Glassdoor is committed to the success of our users and strives to be transparent about our privacy practices with both job seekers and employers. We appreciate the opportunity to participate in DAA’s Accountability Programs and their commitment in helping us comply with their Self-Regulatory Principles for Online Behavioral Advertising.

All BBB National Programs case decision summaries can be found in the case decision library. For the full text of DAAP decisions, visit the DAAP Decisions and Guidance webpage.

About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.

About the Digital Advertising Accountability Program: The Digital Advertising Accountability Program (DAAP), a division of BBB National Programs, was developed by the Digital Advertising Alliance (DAA) to enforce industry self-regulation principles for data privacy in online and mobile advertising, holding companies accountable to the DAA’s Privacy Principles. DAAP provides guidance to companies looking to comply with industry principles and responds to complaints filed by consumers about online privacy.

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Jennie Rosenberg
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BBB National Programs
press@bbbnp.org

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National Advertising Division Recommends BA Sports Nutrition Discontinue Its “The Rehydration Champ is Here” Claim

Posted on February 1, 2024 by Operations Team

New York, NY – February 1, 2024 – BBB National Programs’ National Advertising Division recommended that BA Sports Nutrition, LLC (BA) discontinue the claim “The Rehydration Champ is Here” for its BodyArmor Flash I.V. Sports Drink.

The claim at issue, which appeared on the BodyArmor Flash I.V. Sports Drink webpage and in social media advertising, was challenged by competitor Stokely-Van Camp, Inc. (SVC). BA recently introduced its Flash I.V. Sports Drink to the marketplace in the “rapid rehydration” category.

At issue was whether BA’s “The Rehydration Champ is Here” claim conveys a comparative superiority message or is merely puffery. The National Advertising Division (NAD) concluded that one message reasonably conveyed is that Flash I.V. Sports Drink is the best on the market for rehydration, a claim that requires substantiation.

NAD noted that the quantity of electrolytes in a sports drink is not itself substantiation for a claim of superior rehydration. Although Flash I.V. has more electrolytes than Gatorlyte, in the absence of any comparative product or performance testing in the record on the rehydration benefit of Flash I.V. as compared to Gatorlyte or other competing sports drinks, NAD determined that BA’s “The Rehydration Champ is Here” claim was not supported.

Therefore, NAD recommended that BA discontinue its claim noting that nothing in its decision precludes BA from making properly supported ingredient claims for Flash I.V., or truthful and not misleading claims about the relative electrolyte content of its products and competing products.

In its advertiser statement, BA stated that it “disagrees with NAD’s conclusion but agrees to comply with the recommendation to stop using the ‘Rehydration Champ is Here’ claim, which was used specifically to advertise the launch of BODYARMOR Flash I.V. in 2023, and has already run its course.”

Contact:
Jennie Rosenberg
Media Relations
BBB National Programs
press@bbbnp.org

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New Survey Data from LexisNexis Points to Seismic Shifts in Law Firm Business Models and Corporate Legal Expectations Due to Generative AI

Posted on January 31, 2024 by Operations Team

Nearly half of law firm leaders are exploring new lines of business or billable opportunities as a result of generative AI technology

NEW YORK, January 31, 2024 – LexisNexis^® Legal & Professional, a leading global provider of information and analytics, today released results from a survey of senior leadership at top U.S. law firms and legal professionals at Fortune 1000 companies. The survey was conducted to better understand the business impact of generative AI technology on the legal industry and how it is redefining itself.

Rapid Uptake and Generative AI Investments

Nearly all the legal executives surveyed expect their investment in generative AI technologies to increase over the next five years (90%). The survey found that 53% of Am Law 200 firms have purchased generative AI tools and 45% are using them for legal work. 43% of Am Law 200 leaders indicated their firm has a dedicated budget to invest in the growth opportunities presented by generative AI in 2024.

Reshaping the Law Firm Business Model

Generative AI is presenting opportunities for law firms to create value for their corporate legal clients through new lines of business and strategic services. 70% believe these solutions will enable new value-added work product for clients, with about a third (30%) expecting these solutions to result in a direct impact on firm revenue. Nearly half of law firm leaders are currently exploring new lines of business or billable opportunities made possible by generative AI technologies (47%). Regarding the bottom line, nearly half (47%) expect to achieve a reduction in costs from the use of generative AI solutions.

More Fortune 1000 executives expect generative AI to produce value for their organizations, with three-quarters (76%) expecting cost savings for their legal departments and 72% expecting the technology to increase the ability to complete more work in-house.

“Generative AI has tremendous potential to transform law firms’ business models and create new forms of value for their clients,” said Sean Fitzpatrick, CEO of LexisNexis North America, UK, and Ireland. “We are working closely with customers to integrate our leading generative AI tools into their workflows to drive unprecedented efficiencies and quality for both law firms and corporate legal departments.”

Gap in AI Expectations

Fortune 1000 in-house counsel have higher expectations regarding the use of generative AI in law firms than Am Law executives.

The biggest gap exists around expectations for changes in billing. The majority of Fortune 1000 executives expect to see a reduction in billing from outside counsel due to efficiencies created by generative AI (80%). However, corporate clients have not communicated those reduced billing expectations to law firms. While 43% of law firms agreed with the statement that generative AI will reduce billable hours, only 9% of large law firm leaders indicated their corporate clients have told them they expect their firm bills to be reduced as a result of generative AI, and few firms (11%) are changing or planning to change their billing practices.

While two-thirds of in-house counsel approve of law firms using generative AI in legal matters, only a third of law firm leaders believe their corporate clients approve of this use.

The smallest gap in expectations is seen regarding the use of generative AI and other cutting-edge technology at law firms, as a majority of both groups believe corporate clients expect this from their outside counsel.

Hiring Trends

Both large law firm and corporate respondents believe generative AI technology will impact hiring, with 27% anticipating increased hiring of technologists in 2024, led by 38% of Am Law 200 leaders expecting to increase hiring of technologists, such as data scientists, to support generative AI initiatives at their firms this year. Significantly fewer respondents in non-Am Law firms with 50+ attorneys anticipate hiring additional technologists in 2024 (14%).

The survey reveals a clear divide between Am Law 200 and next tier law firms in their plans to hire more technologists to support generative AI initiatives. While nearly 40% of the largest firms (Am Law 200 leaders) expect to increase hiring in this area in 2024, only 14% of non-Am Law firms plan to do so. This suggests that the largest firms are more aggressively investing in generative AI technology and the talent needed to implement it effectively. The gap indicates that smaller firms may risk falling behind on generative AI adoption without a similar focus on hiring technical experts, even though all respondents agree this technology will have a positive impact overall.

While a majority of law firm respondents believe generative AI will impact the apprenticeship model of large law firms (58%), only a small number of legal leaders expect a reduction in legal roles over the next five years, although one in five Am Law 200 executives predict a reduction in the need for associates.

Legal Analytics and Generative AI

Lex Machina’s recently completed 2024 Legal Analytics Survey found similar results, where 68% of legal professionals using legal analytics in their practice expressed the most excitement and preparedness for generative AI. Twice as many legal analytics users were excited for generative AI compared to non-users (65% to 31%). Additionally, twice as many legal analytics users felt prepared for generative AI compared to non-users (57% to 24%). The survey results indicate that not only is generative AI at the forefront of the minds of the majority of legal analytics users, but also that there’s a positive correlation between the adoption of legal analytics and the readiness to incorporate generative AI in legal practice.

Methodology

LexisNexis Legal & Professional conducted the survey across 266 managing partners and C-suite leaders at Am Law 500 firms, as well as legal professionals in Fortune 1000 companies between December 6, 2023 and January 9, 2024. Findings include responses from 114 executives across 68 Am Law 200 firms, 102 executives across 79 non-Am Law 200 firms with 50 or more attorneys, and 50 executives across 44 Fortune 1000 companies. Surveys were conducted in English via the Forsta survey platform.

For more information on leading legal AI tools from LexisNexis and to download a copy of the survey results, visit www.lexisnexis.com/genai.

About LexisNexis Legal & Professional
LexisNexis^® Legal & Professional provides legal, regulatory, and business information and analytics that help customers increase their productivity, improve decision-making, achieve better outcomes, and advance the rule of law around the world. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis^® and Nexis^® services. LexisNexis Legal & Professional, which serves customers in more than 150 countries with 11,300 employees worldwide, is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers.

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Dana Greenstein
Director of Communications, North America & UK
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