What's Happening?
A recent survey conducted by the Association of Corporate Counsel and Everlaw Inc. reveals a significant increase in the use of generative artificial intelligence (Gen AI) among corporate legal departments.
The survey, which included responses from 657 in-house legal professionals across 30 countries, found that 52% of these departments are now utilizing Gen AI. This marks a substantial rise from the 23% reported in 2024. The growing adoption of Gen AI in legal departments suggests a shift in how these teams operate, potentially affecting their reliance on external law firms.
Why It's Important?
The increased use of Gen AI in corporate legal departments could have far-reaching implications for the legal industry. As in-house teams become more self-sufficient through technology, the demand for traditional legal services from outside firms may decrease. This shift could lead to a reevaluation of the roles and services provided by law firms, prompting them to adapt by integrating more technology-driven solutions. Additionally, the efficiency and cost-effectiveness offered by Gen AI could lead to more competitive pricing and innovative service models within the legal sector.
What's Next?
As the adoption of Gen AI continues to grow, legal departments may further explore its capabilities, potentially expanding its use beyond current applications. This could include more complex legal analysis and decision-making processes. Law firms, in response, might invest in developing their own AI tools or form partnerships with tech companies to remain competitive. The legal industry could see a transformation in service delivery models, with a focus on technology integration and innovation.
