While law firms dawdle, corporate legal departments are charging ahead with AI adoption. The numbers don’t lie—there’s a massive 26-point gap between in-house legal teams (81%) and law firms (55%) when it comes to embracing artificial intelligence. Let’s face it, the suits running corporate legal departments aren’t waiting around for permission slips.
Nearly 90% of in-house lawyers are either already using AI or seriously considering it. Only 10% have zero plans to adopt these tools. That’s right, just one in ten are still living in the technological dark ages. Meanwhile, over two-thirds of organizations are planning to ramp up their generative AI use next year. The future is now, folks.
What are they actually doing with all this fancy tech? Contract work dominates the field, with 64% of AI-adopting teams using it for drafting, reviewing, and analyzing agreements. Legal research comes in second at 49%, followed by document translation (38%) and chatbots (37%). This mirrors the broader healthcare sector, where AI-powered chatbots are projected to save $3.6 billion globally by 2025.
These aren’t just experiments, either—30% of teams use AI daily, with another 38% checking in weekly. This stuff is becoming as routine as morning coffee.
The verdict on effectiveness? Overwhelmingly positive. A staggering 97% of users find their AI tools “somewhat” or “highly effective.” Contract-related AI is delivering the fastest ROI, with teams raving about productivity gains. Who doesn’t love getting more done with less effort?
This enthusiasm makes sense given that 93% agree AI has improved their work processes, making legal teams more efficient than ever before.
Looking ahead, in-house teams are eyeing workflow automation (32%) and document automation (28%) in the next couple years. By 2026, we’ll likely see AI running through legal departments like electricity.
It’s not all sunshine and rainbows, though. Trust issues and data privacy concerns still keep some legal execs up at night. Measuring ROI remains tricky, and the usual suspects—training challenges and change management—continue to cause headaches.
But clearly, corporate legal departments have decided that waiting isn’t an option. They’re charging ahead while law firms hesitate. Their loss.
According to industry experts, there are substantial opportunities for legal departments to transform their service delivery with advancing GenAI technology.
References
- https://abovethelaw.com/2025/06/what-the-latest-data-reveals-about-legal-professionals-ai-perspectives/
- https://www.deloitte.com/global/en/services/legal/research/ai-inhouse-legal-2025-predictions.html
- https://www.lawnext.com/2025/06/legal-departments-show-growing-ai-adoption-but-implementation-challenges-remain-new-survey-finds.html
- https://www.spellbook.legal/blog/counselwell
- https://legal.thomsonreuters.com/blog/genai-report-executive-summary-for-legal-professionals/
