What's Happening?
A recent report from KPMG highlights a growing expectation among general counsel for law firms to be transparent about their use of artificial intelligence (AI) in client matters. The '2026 KPMG Global
General Counsel Outlook' reveals that 82% of general counsel surveyed expect their firms to track and share their AI usage. This demand for transparency is seen as a key indicator of caution towards AI, reflecting a broader trend where law firms are evaluated not only on their legal expertise but also on how effectively they manage and explain the technologies that support their work. The report is based on a global survey conducted with 468 general counsels and senior legal leaders in late 2025 and early 2026.
Why It's Important?
The increasing demand for transparency in AI usage by law firms signifies a shift in how legal services are evaluated. As AI becomes more integrated into legal processes, clients are concerned about the ethical and operational implications of these technologies. This trend could lead to significant changes in how law firms operate, potentially affecting their competitive edge and client relationships. Firms that effectively manage and communicate their AI strategies may gain a competitive advantage, while those that fail to do so could face scrutiny or lose client trust. This development underscores the importance of governance and accountability in the deployment of AI within the legal industry.
What's Next?
As the expectation for transparency grows, law firms may need to develop more robust frameworks for tracking and reporting their AI usage. This could involve investing in new technologies or processes to ensure compliance with client demands. Additionally, firms might need to engage in more frequent dialogues with clients to address concerns and demonstrate their commitment to ethical AI practices. The legal industry could also see increased collaboration with technology experts to enhance understanding and management of AI tools. These steps are likely to shape the future landscape of legal services, influencing how firms position themselves in a technology-driven market.
