# Data Usage Throughout the Legal Value Chain

> Note: This article is just one of 60+ sections from our full report titled: The 2024 Legal AI Retrospective - Key Lessons from the Past Year .

**Author:** Alex Denne  
**Category:** Insights  
**Published:** 2024-12-18  
**Reading time:** 3 min

**Note:** This article is just one of 60+ sections from our full report titled: [The 2024 Legal AI Retrospective - Key Lessons from the Past Year](https://www.genieai.co/blog/legal-ai). Please download the full report to check any citations.

**Introduction: Data Usage Throughout the Value Chain**

The legal AI ecosystem relies heavily on data at every stage of its lifecycle:

1. Data Collection and Storage (inc. Model training)
2. Data Processing and Analysis (inc. Model training)
3. Data Output and Reporting

**Data Collection and Storage:** A 2023 survey by the International Legal Technology Association (ILTA) found that 78% of law firms now use cloud-based storage solutions for client data.[50]

The American Bar Association reported in 2023 that legal AI systems are increasingly incorporating privacy-enhancing techniques to protect data during the training process.[51]

**Data Processing and Analysis:** According to a 2023 study, legal AI tools are increasingly employing privacy-preserving techniques to protect individual data points during analysis.[52]

The Journal of Artificial Intelligence and Law reported in 2023 that legal AI systems are exploring advanced encryption methods to perform computations on encrypted data, enhancing security.[53]

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