In-house legal teams are using AI to do more work themselves. Over half have already reduced assignments to outside counsel. Nearly all plan to cut such work within a year. Law firms are responding by passing on AI cost savings. They are also offering alternative billing models. Complex and high-stakes work will likely remain with law firms.
What changed
In-house teams sent most legal work to outside counsel without AI tools.
What it unlocks
Legal departments can now handle more routine legal work internally.
- over 50% of in-house teams already cut outside counsel work
- nearly all legal departments plan to cut work within a year
Sources