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Survey shows more law departments are utilizing generative AI
SHERRY KARABIN
Legal Tech News
Published: October 31, 2025
As generative artificial intelligence (GenAI) tools continue to advance, more corporate legal departments are embracing the technology.
In an Oct. 14 post (https://www.everlaw.co.uk/blog/ai-and-law/in-house-teams-turn-to-genai-for-efficiency-raising-new-expectations-for-law/#signaling-a-readiness-to-disrupt-the-billable-hour) Everlaw writer and editor Petra Pasternak discusses a recent survey by Everlaw and the Association of Corporate Counsel, which finds GenAI adoption among U.S. in-house teams has more than doubled in the last year.
Entitled “Generative AI’s Growing Strategic Value for Corporate Law Departments,” the study includes responses from 657 CLOs, GCs and legal ops professionals in the United States, Europe, Australia and Asia.
The findings show 52% of U.S. teams in the survey have embraced the technology, up from just 23% last year--and only 2% say they have no plans to use it.
Positive feelings toward GenAI have also increased, with 50% of U.S. respondents stating its impact will be significant and 20% noting it will be transformative, versus 45% and 11% a year ago.
More companies are eliminating bans on its use as well, with only 9% prohibiting it, down from nearly 30%.
According to Pasternak, GenAI is enabling in-house professionals to be more self-sufficient and reduce costs across a variety of matters, with the technology poised to change how law firms outsource work.
In fact, 64% of respondents say they expect to rely less on outside counsel due to GenAI.
Eighty-two percent of respondents expect to see the biggest savings in outside counsel expenses in the area of contract drafting and negotiation. In addition, nearly half predict they’ll be able to cut costs for higher-value, repeatable work like regulatory/compliance and general counsel tasks, litigation and M&A.
While in-house teams are embracing the technology, 59% say they don’t know if their firms are utilizing it for their matters and only 24% of those surveyed are satisfied with how it’s being used to deliver better value.
In the meantime, sentiment is building for changes to current billing practices, with 61% ready to push for new delivery and pricing models.
Many believe the future will be about value-based billing and alternative fee arrangements, said Pasternak, adding the survey makes it clear GenAI is beginning to change the way legal departments function.
“With new capabilities to automate routine work and accelerate insight, legal teams are poised to rebalance their mix of internal and external work while tightening control over cost and risk,” said Pasternak. “The implications will extend well beyond efficiency--with potential to reshape pricing expectations, redefine value, and give legal leaders new power at the negotiation table.”