eDiscovery Challenges Impacting Business Performance: Insights from the Summer 2024 and Aggregate Business Confidence Surveys

[EDRM’s Editor’s Note: This article was first published here on October 8, 2024, and EDRM is grateful to Rob Robinson, editor and managing director of Trusted Partner ComplexDiscovery, for permission to republish in part.]

ComplexDiscovery’s Editor’s Note: This eDiscovery Business Confidence Survey report focuses on the on-going survey question relating to the challenges impacting business performance in the eDiscovery industry, specifically examining six key areas of potential impact: budgetary constraints, data security, inadequate technology, increasing types of data, increasing volumes of data, and lack of personnel. These challenges were analyzed using data from 35 eDiscovery Business Confidence Surveys, which gathered insights from a total of 3,390 respondents. With an average of 97 participants per survey, this extensive dataset provides a comprehensive view of the pressures shaping the industry today. The Summer 2024 survey, with 60 respondents, offers fresh insights into these ongoing business challenges.

This report also touches on the role that Generative AI can play in mitigating some of these challenges, particularly through automation and enhanced data management. While the focus remains on the key business impact areas identified in the survey, the potential for AI to influence and improve performance is briefly explored, providing a glimpse into how emerging technologies may shape the future of eDiscovery.

By combining both current trends and potential innovations, this report offers eDiscovery professionals valuable insights to help navigate an increasingly complex and evolving industry landscape, ensuring they are well-prepared to meet both current and future challenges.

eDiscovery Challenges Impacting Business Performance: Insights from the Summer 2024 and Aggregate Business Confidence Surveys

The eDiscovery industry continues to navigate a rapidly evolving landscape marked by increasing data complexity, technological advancements, and persistent financial pressures. The quarterly eDiscovery Business Confidence Survey, conducted by ComplexDiscovery OÜ in partnership with the EDRM, offers a comprehensive view of the key business impact challenges faced by professionals in this space. This report consolidates findings from the Summer 2024 survey alongside aggregate data from all 35 surveys to provide a holistic overview of the industry’s most pressing challenges. By analyzing six core areas—budgetary constraints, data security, inadequate technology, increasing types of data, increasing volumes of data, and lack of personnel—this report identifies key trends and offers actionable insights for individuals and organizations operating in the eDiscovery ecosystem. Understanding these challenges and their implications is crucial for adapting to the dynamic nature of eDiscovery, ensuring that professionals are well-equipped to meet both current demands and future growth.

1. Budgetary Constraints

Aggregate (All Surveys): 25.90%
Summer 2024: 31.67%

Overview: Budgetary constraints have consistently been the most significant challenge for eDiscovery professionals. Rising costs and tighter budgets reflect the pressure on organizations to manage operations more efficiently without sacrificing quality or speed.

Trend: Budgetary constraints have consistently been the most significant challenge reported across eDiscovery surveys, and the trend shows no signs of abating. In the Summer 2024 survey, 31.67% of respondents identified it as their top concern, the highest percentage recorded in recent quarters. The aggregate figure of 25.90% across all surveys further underscores the persistent pressure organizations face to manage costs effectively.

Implications for Professionals: Organizations are increasingly focused on cost-efficient solutions, and individuals may need to focus on justifying expenditures through clear ROI. To thrive, professionals should prioritize cost-effective tools, automation, and process improvements. Professionals who can help reduce costs while maintaining high-quality output will be highly valued.

Recommended Strategies:

• Leverage AI and automation tools to streamline processes.
• Enhance cross-functional team capabilities to maximize resource efficiency.
• Seek cost-saving technologies that don’t compromise on performance.

2. Increasing Types of Data

Aggregate (All Surveys): 21.10%
Summer 2024: 26.67%

Overview: The increasing variety of data types is a significant challenge in the eDiscovery space. With the rise of non-traditional data sources like social media, cloud applications, and IoT devices, managing diverse data types has become more complex and time-consuming.

Trend: This challenge has consistently been a top concern, with Summer 2024 showing an uptick to 26.67%, well above the aggregate average of 21.10%. The increasing diversity of data types is a growing issue that shows no signs of slowing down.

Implications for Professionals: Handling multiple forms of data requires expertise in diverse formats, technologies, and processes. Professionals who can quickly adapt to new data types and develop strategies for their effective management will be highly valued.

Recommended Strategies:

• Invest in technology platforms that can handle a wide variety of data formats.
• Build expertise in managing non-traditional data sources.
• Create flexible workflows that accommodate different types of data seamlessly.

3. Increasing Volumes of Data

Aggregate (All Surveys): 20.29%
Summer 2024: 15.00%

Overview: The sheer volume of data in the eDiscovery process remains a significant challenge. As the digital universe continues to expand, managing massive amounts of data requires advanced techniques and technologies.

Trend: While there was a slight decrease in concern for this area in Summer 2024 (15.00%), the aggregate remains high at 20.29%. This suggests that while some organizations may be adopting strategies to handle data growth, it remains a critical issue overall.

Implications for Professionals: The ability to manage large datasets efficiently is increasingly important. Professionals skilled in data reduction techniques, such as deduplication, predictive coding, and AI-driven analytics, will be indispensable.

Recommended Strategies:

• Implement scalable data management systems.
• Utilize AI to filter, categorize, and prioritize data more efficiently.
• Stay current with data minimization techniques to reduce volumes where possible.

4. Lack of Personnel

Aggregate (All Surveys): 13.28%
Summer 2024: 6.67%

Overview: Finding and retaining skilled professionals in the eDiscovery field is an ongoing concern. As the field becomes more technical and cross-disciplinary, there are occasional talent shortages, particularly in times of high demand.

Trend: The aggregate shows a relatively high concern (13.28%), though Summer 2024 reported a decline to 6.67%. This suggests that while staffing shortages are still relevant, there may be fluctuations based on market conditions and talent availability.

Implications for Professionals: With evolving demands for more technical skills, professionals who possess both legal and technical expertise will be highly sought after. There will also be demand for those who can adapt quickly to new roles or expand their skill sets to cover multiple aspects of eDiscovery.

Recommended Strategies:

• Invest in continuous learning and skill development, especially in areas like AI and data management.
• Encourage interdisciplinary skills (legal, technical, and project management).
• Develop talent pipelines and focus on retaining key employees through career development opportunities.

5. Data Security

Aggregate (All Surveys): 12.18%
Summer 2024: 13.33%

Overview: Data security, while not always the top concern, remains significant due to the increasing risks associated with breaches, ransomware, and regulatory compliance. Protecting sensitive data is essential, particularly given the legal ramifications of data exposure.

Trend: The concern around data security has remained fairly stable, with only slight variations between the aggregate (12.18%) and Summer 2024 (13.33%). This stability reflects the ongoing importance of security in the face of growing cyber threats.

Implications for Professionals: Security expertise will continue to be crucial as organizations look to minimize the risk of breaches and ensure compliance with global data protection regulations like GDPR and CCPA.

Recommended Strategies:

• Prioritize cybersecurity certifications and training.
• Implement robust encryption and data access controls.
• Stay updated on evolving data protection laws and regulations.

6. Inadequate Technology

Aggregate (All Surveys): 7.23%
Summer 2024: 6.67%

Overview: Inadequate technology remains a minor but persistent challenge. While most organizations have adopted advanced tools, some continue to struggle with outdated or inefficient technology that hinders their operational performance.

Trend: The concern has stayed relatively low, with only minor variations between quarters. In the Summer of 2024, inadequate technology was reported by 6.67%, close to the overall average of 7.23%.

Implications for Professionals: Keeping up with technology trends is essential. Professionals who can implement or optimize technology solutions for their organizations will find themselves in high demand.

Recommended Strategies:

• Regularly assess and update technology stacks to ensure they meet current demands.
• Adopt solutions that integrate seamlessly across the eDiscovery process.
• Encourage a culture of innovation and experimentation with new tools and technologies.

Cogent and Concise Insights

From the analysis, budgetary constraints and data complexity (in terms of both volume and type) emerge as the most persistent and significant challenges. While data security, inadequate technology, and lack of personnel are of relatively lesser concern, they remain important areas that professionals must address to ensure long-term success in the evolving eDiscovery ecosystem.

Key Actionable Insights:

• Focus on cost-effective, scalable solutions to address financial pressures.
• Continue investing in skills and technology that address the complexity of growing and diverse data.
• Prioritize data security measures and ongoing training in cybersecurity to meet regulatory and operational demands.
• Consider and leverage AI to automate repetitive tasks, manage data complexity, and improve both operational efficiency and cost-effectiveness.

The Potential Impact of Generative AI on eDiscovery Challenges

As the eDiscovery industry evolves, generative AI is poised to significantly transform how organizations and professionals address their most pressing business challenges. From reducing costs and managing growing volumes of data to improving security and addressing personnel shortages, AI offers solutions that can enhance efficiency and performance across the eDiscovery process. This section provides a snapshot look into how generative AI might impact six key business challenges identified in the eDiscovery Business Confidence Survey. By exploring each area, we highlight how AI can mitigate these challenges and shape the future of the eDiscovery ecosystem, offering actionable insights into its transformative potential.

1. Budgetary Constraints – Impact of Generative AI:

• Efficiency and Automation: Generative AI can automate time-consuming tasks like document review, predictive coding, and data categorization. This could significantly reduce costs by minimizing manual labor and improving accuracy.
• Cost-Effective Insights: AI can analyze data faster, reducing the time and resources spent on processing and review, which helps alleviate budgetary pressures.
• Streamlined Operations: AI can enable organizations to handle more cases with fewer resources, optimizing workflows and improving the bottom line.

2. Increasing Types of Data – Impact of Generative AI:

• Efficient Data Normalization: Generative AI excels at processing diverse data types, whether text, audio, images, or video. This allows teams to handle a wide range of data formats more efficiently.
• Advanced Data Classification: AI can automatically classify and organize different data types, streamlining the review process and improving accuracy when dealing with non-traditional data like social media or IoT sources.

3. Increasing Volumes of Data – Impact of Generative AI:

• Scalable Data Processing: AI’s ability to manage large datasets allows organizations to tackle increasing data volumes with ease. AI-driven tools can scale to handle even massive datasets quickly and accurately.
• AI-Driven Data Reduction: AI can identify and filter out irrelevant or redundant information, reducing the volume of data that needs to be reviewed and speeding up the eDiscovery process.

4. Lack of Personnel – Impact of Generative AI:

• Augmenting Human Capabilities: AI helps offset staffing shortages by automating routine tasks, enabling smaller teams to achieve more with less effort.
• Upskilling and Reallocation: As AI takes over repetitive work, professionals can focus on higher-level strategic tasks, allowing them to upskill and take on more complex responsibilities within the eDiscovery process.

5. Data Security – Impact of Generative AI:

• Enhanced Threat Detection: AI can detect patterns in data that signal security risks or breaches, providing more proactive security measures.
• Risk Prediction and Compliance: AI-driven tools can perform real-time assessments to ensure compliance with data protection regulations, reducing the risk of data breaches and legal issues.

6. Inadequate Technology – Impact of Generative AI:

• Innovation in Tools: Generative AI can close the technology gap by providing powerful new tools that are more effective and easier to use, allowing organizations with outdated systems to modernize.
• Customized Solutions: AI can be tailored to meet specific organizational needs, reducing the impact of inadequate technology by offering flexible and scalable solutions.

Closing Thoughts on Generative AI’s Impact on eDiscovery Challenges

Generative AI represents a transformative force in the eDiscovery landscape, offering innovative solutions to longstanding business challenges. By automating labor-intensive tasks, improving data processing efficiency, enhancing security, and addressing both technological and personnel limitations, AI has the potential to streamline operations and significantly reduce costs. As eDiscovery continues to face increasing complexities—ranging from budgetary constraints to data diversity and volume—professionals who embrace AI-driven tools and strategies will be better positioned to navigate these challenges effectively. This snapshot of AI’s impact serves as both a roadmap and a call to action for organizations to integrate these technologies, ensuring they remain competitive and agile in an ever-evolving digital and legal environment.

Read the original release here for the complete survey results with detailed charts.

About ComplexDiscovery OÜ

ComplexDiscovery OÜ is a highly recognized digital publication providing insights into cybersecurity, information governance, and eDiscovery. Based in Estonia, ComplexDiscovery OÜ delivers nuanced analyses of global trends, technology advancements, and the legal technology sector, connecting intricate issues with the broader narrative of international business and current events. Learn more at ComplexDiscovery.com.

Additional Reading

• eDiscovery Survey Archives of ComplexDiscovery
• eDisclosure Systems Buyers Guide – Online Knowledge Base
• Complete Presentation – Market Kinetics – Summer 2024 Performance Impact (PDF)

Source: ComplexDiscovery OÜ

Assisted by GAI and LLM Technologies per EDRM GAI and LLM Policy.