Accelerated AI adoption promises to cut legal costs, boost efficiency, and reshape outsourcing models, forcing law departments to rethink value metrics and risk controls.
Generative AI is moving from experimental to operational within corporate legal teams. The Everlaw‑ACC survey reveals that familiarity with large‑language models and tangible productivity gains are driving a rapid lift in adoption. Practitioners cite faster document review, automated contract drafting, and predictive analytics as primary benefits, while the decline in policy bans reflects growing confidence in governance frameworks. This momentum mirrors broader enterprise AI trends, where risk‑averse cultures give way to data‑driven decision making.
The surge in AI usage is reshaping the economics of legal services. As departments automate routine tasks, they can reallocate senior counsel to higher‑value advisory work, reducing reliance on external firms for basic document work. This internal efficiency pressure forces law firms to differentiate through expertise, strategic counsel, and technology integration. Moreover, AI‑enabled spend analytics provide clearer visibility into cost drivers, prompting a shift from hourly billing toward outcome‑based pricing models that better align with corporate objectives.
Looking ahead, corporate law departments must balance speed of adoption with robust oversight. Key challenges include data privacy, model bias, and ensuring AI outputs meet professional standards. Investing in AI literacy, establishing clear usage policies, and integrating AI tools with existing knowledge management systems will be critical. Companies that master this balance can achieve competitive advantage, turning generative AI from a cost‑center into a strategic asset that enhances risk management, compliance, and overall legal performance.

A new report by Everlaw and the Association of Corporate Counsel reveals that GenAI adoption is dramatically accelerating among corporate law departments, with implications for how legal work is outsourced and valued. See where 657 global legal professionals see the greatest risks and opportunities.
As the technology improves and organizations become more familiar with its benefits, outright prohibitions on AI use are plummeting, paving the way for wider implementation. This year’s survey shows adoption of GenAI for legal work more than doubled to 52 percent among U.S. respondents over last year, while those just passively planning for use halved to 14 percent.
The post Everlaw: Generative AI’s Growing Strategic Value for Corporate Law Departments appeared first on ACEDS.
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