AI Is Decreasing In-House Reliance On Law Firms

reliance on law firms

Many law departments prioritize lessening their reliance on law firms, and the penetration of GenAI and AI-enabled tools is accelerating this trend. Nearly two-thirds of in-house lawyers already expect a decreased reliance on external legal assistance. As lawyers increasingly adopt AI tools as part of their daily activities, it is clear that this trend will have a big impact on what matters are handled in-house and what will require external legal support.

“A new survey of 475 inhouse professionals across the US has found that 58% of them expect a ‘reduced reliance on outside providers for routine tasks’, because of the use of genAI. Meanwhile, 23% of respondents were already using genAI, with 67% planning to use it in some form. Also, when asked how genAI would shape their future careers, 35% of inhouse professionals noted that ‘reducing my reliance’ on law firms for simpler matters would be a factor in how their job evolved. That makes sense, given that many inhouse lawyers spend plenty of time finding, then working with, external advisers on a wide range of matters. So, any change to demand there also changes the balance of tasks in their role. The survey by the ACC and Everlaw – and it’s a very solid survey this site has to say – underlines a fundamental change that genAI could deliver, namely the ability of inhouse legal teams to handle more process work internally.”

Read: 58% of Inhousers ‘Expect Reduced Reliance’ On Law Firms at Artificial Lawyer