In-House Teams Turn to GenAI for Efficiency, Raising New Expectations for Law Firms
New survey highlights in-house surge in adoption and outside counsel transparency gap
by Petra Pasternak
As GenAI tools grow in sophistication, corporate legal departments are no longer debating whether to use them, but where they’ll deliver the greatest impact.
Findings from the latest survey by Everlaw and the ACC show that GenAI adoption among U.S. in-house teams has more than doubled in the last year. So has optimism about the technology as transformational for legal work.
Respondents report that GenAI helps them work faster, communicate more effectively, and deliver better client service. A growing share — one third this year, up from one quarter last year — are already seeing measurable cost savings.
As these efficiencies compound, the effects are rippling across practice areas and influencing how much work legal teams can manage internally and what they choose to outsource. Many in-house professionals now believe the next frontier lies in recalibrating how outside counsel deploy GenAI, and how legal services are ultimately priced.
These and other insights come from Generative AI’s Growing Strategic Value for Corporate Law Departments, a survey of 657 CLOs, GCs, and legal ops professionals from the U.S., Europe, Australia, and Asia.
Early Efficiencies, Savings Fueling GenAI Adoption
GenAI is fast becoming a strategic tool for in-house legal departments under pressure to do more with less. The technology’s low barrier to initial use, applicability across a broad range of legal tasks, and proof of early productivity gains makes it ideal for teams that are looking to keep pace with innovation at their organizations.
This year’s survey shows just how rapidly attitudes are shifting. GenAI adoption for legal work more than doubled among U.S. in-house teams to 52 percent, up from just 23 percent last year. The segment who have no plans to use GenAI has plummeted to just 2 percent.
Optimism about GenAI’s impact on legal work has also grown: Half of U.S. respondents now say the impact will be significant (50 percent – up from 45 percent a year ago) and 20 percent say it will be transformative, nearly doubling from 11 percent.
The doors to adoption are also swinging open with company-wide permissions to use GenAI. The number of respondents citing company bans dropped to just 9 percent this year, from nearly 30 percent a year ago.
Are you currently using, or planning to use, generative AI in your legal work?
Bringing More Types of Work In-House
GenAI is creating opportunities for legal teams to increase their self-sufficiency – and reduce costs – across a growing variety of matters. The survey reveals that nearly two-thirds of respondents (64 percent) expect to rely less on law firms thanks to GenAI.
Large majorities see the greatest opportunity to handle more drafting (78 percent), contracts (71 percent), and legal research (62 percent) internally. About a third of participants also see opportunity for greater ability to handle litigation and M&A matters internally (29 percent each).
Asked which areas of practice currently serviced by outside counsel they expect to see the biggest cost savings in the next three years, 82 percent say contract drafting and negotiation. Nearly half also see savings ahead in higher‑value, repeatable work — including regulatory/compliance and general counsel tasks, litigation, and M&A.
What type of legal work do you see the greatest opportunity to handle in-house with GenAI?
Overcoming the Disconnect with Law Firms and GenAI
The survey highlights a deep disconnect between clients and their outside counsel when it comes to GenAI. Most corporate legal teams still don’t have a clear view into how their law firms are using GenAI — or whether it’s lowering costs. Nearly six in 10 say they lack visibility into GenAI use on their matters, and the same share report seeing no savings passed on.
This may not be surprising, since four in five don’t require or even encourage law firms to use the technology. When the topic does come up, it’s usually informal and undocumented — not baked into outside counsel guidelines or RFPs. The result is missed opportunities for efficiency, transparency, and stronger partnerships.
Are any of your law firms currently using GenAI on legal matters for your organization?
Signaling a Readiness to Disrupt the Billable Hour
It’s no surprise that only about a quarter of respondents (24 percent) are satisfied with how outside counsel are using GenAI to deliver better value. While 63 percent say it’s too early for cost reductions to materialize, nearly 60 percent also note that law firms have not started to adjust their pricing models for AI efficiencies.
In-house leaders are prepared to change that status quo. A significant majority (61 percent) are ready to push for new delivery and pricing models, and nearly half (49 percent) believe client demand will be the primary driver. The future, many say, is about value-based billing and alternative fee arrangements.
Momentum is building against the billable hour. Firms that connect GenAI-enabled efficiency to fair, transparent pricing will differentiate themselves as modern, client-first partners.
How likely is your team to push for a change in how legal services are delivered and priced?
Building a More Strategic In-House Legal Department with GenAI
This year’s survey makes one thing clear: GenAI is becoming a catalyst for a more strategic in-house legal 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. 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.

Petra Pasternak is a writer and editor focused on the ways that technology makes the work of legal professionals better and more productive. Before Everlaw, Petra covered the business of law as a reporter for ALM and worked for two Am Law 100 firms.