More than half of corporate legal departments reported using generative artificial intelligence this year, a finding with important implications for their use of outside law firms, according to a survey from the Association of Corporate Counsel and Everlaw Inc.
Some 52% of in-house teams are using Gen AI, more than double the 23% who reported using it in 2024, according to the report released this week, which was based on a survey of 657 in-house legal professionals across 30 countries.
- As corporate counsel become increasingly comfortable with the technology, they expect to be more self-sufficient: 64% say they will need to outsource less work to law firms. Another 50% say AI use will allow them to cut their spending on outside counsel.
- The biggest areas cited by respondents for AI-led efficiency gains include drafting, contract management, and research.
- A majority, 59%, said they’ve not yet realized any AI-related savings from their law firms, but a similar percentage said they would be pushing for changes in the pricing and delivery of legal services
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