Generative AI takes off in-house doubling in a year, ACC finds

The Association of Corporate Counsel (ACC), the premiere global organization serving the professional and business interests of in-house counsel, in partnership with Everlaw, the cloud-native litigation and investigation platform, released a landmark survey revealing that adoption of generative AI (GenAI) in corporate law departments has more than doubled in the past year. In the report Generative AI’s Growing Strategic Value for Corporate Law Departments, the 657 in-house professionals surveyed across 30 countries underscores the technology’s accelerating role in reshaping business operations, cost structures, and the relationship between corporate legal teams and outside counsel.

Among the report’s findings:

• Rapid adoption: More than half (52%) of in-house counsel are now actively using GenAI in their practice more than doubling from just 23% in 2024.
• High impact in legal operations: 84% of legal operations professionals, the highest among all positions surveyed, anticipate the transformative impact of GenAI, and advocate for its integration.
• Efficiency gains: 91% cited efficiency as the most tangible benefit, particularly in drafting and legal research, freeing lawyers to focus on strategic business priorities. Backed by current and anticipated efficiency gains, most respondents see an opportunity to reshape their operations by insourcing drafting and research, along with elements of higher-level work such as M&A and litigation.
• Shifting work in-house: Nearly two-thirds (64%) of respondents are leveraging GenAI, with eventual impact of relying less on law firms and bringing work in-house and reducing costs. With significant cost-saving potential in areas such as contract drafting (82%), compliance (46%), litigation (45%), and M&A (42%).
• Obstacles to realizing GenAI’s cost-saving potential: Nearly 60% of respondents reported “no noticeable savings yet” from their outside counsel using GenAI on their matters, with most citing efficiency gains rather than direct cost reductions. The top reason (63%) is that it’s still early in the adoption cycle, though 58% point to a deeper issue: law firms haven’t adjusted pricing to reflect GenAI-driven efficiencies. This underscores a disconnect between productivity gains and value delivered to clients.
• The future of law firm billing: In-house counsel expect generative AI to reshape law firm billing, with client demand driving the shift. Nearly half (49%) see clients leading the change, and most anticipate moving away from the billable hour. Forty-three percent expect more value-based billing, and another 35% believe AI-driven competition will lower costs, signaling a clear push for pricing that reflects efficiency and value, not time spent. Sixty-one percent of in-house counsel said they are likely to push for changes in how outside legal services are priced, signaling demand for value-based or alternative fee arrangements.

“The speed of adoption of artificial intelligence within the workplace speaks volumes,” said Veta T. Richardson (PICTURED), ACC president and CEO. “In-house counsel are not only using AI to make their departments more efficient — they are reimagining how legal work is delivered, how costs are being managed, and how value is defined. This is a pivotal moment for our profession, and ACC is committed to ensuring our members have the insights, tools, and community to navigate this transformation with confidence.”

“One thing every general counsel says about their outside counsel is they want greater value,” Everlaw Chief Legal Officer Gloria Lee said. “Generative AI — used responsibly and always with a human in the loop — will allow law firms to deliver services faster, smarter, and within clients’ ever-tighter budgets.”

The report also highlights a growing transparency gap with outside counsel, with 59% of in-house teams unaware of whether their law firms are using GenAI on their matters — and few seeing cost savings so far. The report notes that this disconnect represents both a challenge and an opportunity for closer collaboration.