As corporate law departments increasingly adopt generative AI, a majority of them expect the technology to reduce their reliance on outside service providers for routine tasks, according to a new study.
A survey of 475 law department professionals by the Association of Corporate Counsel and Everlaw reveals that 58% of legal departments believe that generative AI will reduce their dependence on outside providers.
In a statement announcing the results, the organizations noted that this proportion more than doubles the 25% of respondents to a 2023 survey who said they planned to reduce the number of law firms they would engage with during the coming year, with cost-effectiveness cited as the primary reason.
“The expectation for in-house teams to cut costs with AI is becoming a reality, with over a quarter now reporting savings,” Gloria Lee, Everlaw’s CLO, said in the statement. “In just three years, AI technology’s accelerating impact on corporate counsel has begun to reshape in-house legal functions, spurring a sea change across the legal industry.”
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