Generative AI (Gen AI) adoption among in-house legal professionals in the US has more than doubled over the past year, according to an Association of Corporate Counsel report.
The report – which was based on a survey of 657 in-house counsel across 30 countries – found that 52% of respondents in the US had started using Gen AI tools, compared to 23% a year ago. Globally, 53% have been using the tech in the past year, with Europe the most advanced region at 61% (the ACC doesn’t have data for Gen AI usage outside of the US in 2024). That jump in usage in the US this year was driven by organisations removing restrictions on the tech, with only 9% of businesses now imposing policies against AI use, compared to 29% in 2024.
Some 92% of respondents said the biggest benefit from adopting Gen AI is efficiency gains in areas such as drafting (73%) and legal research (53%). Almost two-thirds of respondents (64%) believe these gains will mean they can keep more work in-house and help reduce costs. A majority believe most of those cost savings will come from contract drafting efficiencies (82%), with 45% also expecting to see lower spend on litigation and 42% on M&A.
More than half of respondents (61%) said they will ‘very likely’ or ‘somewhat likely’ push for a change to the billable hour as a result of Gen AI use among their law firms in the future, with value-based billing models seen as a better alternative (43%).
However 59% of respondents said they are unaware if their law firms are using Gen AI on their legal matters, while as many as 80% said they are not requiring or encouraging their firms to use the technology. To that end, 59% of respondents said they have seen no noticeable savings from their outside counsel’s use of AI.
The ACC said: “Our findings reveal a decisive shift from passive planning to active implementation, with the in-house legal community moving swiftly to integrate this technology into their daily work. The past year has been a pivotal one for adoption, showing a dramatic acceleration in Gen AI usage.”
Back in May, a report from Thomson Reuters found that 64% of in-house counsel believe Gen AI use will result in a lower proportion of work being billed at an hourly rate over the next five years.
The Global Legal Post has teamed up with LexisNexis to help inform readers’ decision-making process in the selection of a Gen AI legal research solution.
Click here to download the report, Harnessing Gen AI in law – lessons from the front lines in Europe, and here to visit the Generative AI Legal Research Hub.
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