What's Happening?
A new report from KPMG reveals that law firms are under growing pressure to be transparent about their use of artificial intelligence (AI) in client matters. The '2026 KPMG Global General Counsel Outlook' indicates that 82% of general counsel expect their firms to track
and disclose their AI usage. This expectation reflects a broader trend of clients demanding greater accountability and understanding of how technology is integrated into legal services. The report is based on a global survey of 468 general counsels and senior legal leaders conducted in late 2025 and early 2026.
Why It's Important?
The demand for transparency in AI usage highlights the evolving relationship between technology and the legal profession. As AI becomes more prevalent, law firms must navigate the challenges of integrating these tools while maintaining client trust. The report suggests that firms are now evaluated not only on their legal expertise but also on their ability to effectively manage and explain the technologies they use. This shift could lead to increased investment in AI governance and training, as firms strive to meet client expectations and remain competitive in a technology-driven market.
What's Next?
Law firms may need to develop comprehensive AI policies and training programs to ensure compliance with client expectations and industry standards. This could involve appointing dedicated AI officers or committees to oversee technology integration and address ethical concerns. As the legal industry continues to adapt to technological advancements, firms that successfully balance innovation with transparency are likely to gain a competitive edge.
