82% of GCs Demand Transparency on Law Firms’ AI Use in Legal Work
82% of general counsel expect law firms to disclose how they use AI in legal services.
Why it matters: As 87% of corporate legal teams use generative AI, law firms must be clear about their AI practices to maintain client trust and competitiveness.
- 87% of corporate legal departments use generative AI, up from 44% last year.
- 82% of general counsel expect law firms to clearly explain their AI usage.
- 66% of law firms do not formally track AI efficiency gains despite 69% using AI tools.
- Only 33% of senior legal professionals trust the results of AI-assisted legal work.
The legal industry is rapidly adopting artificial intelligence, both in-house and among law firms. According to the General Counsel Report, 87% of corporate legal departments now use generative AI, a significant rise from 44% in 2023. This swift increase has raised client expectations for clear communication regarding AI use.
Clients want law firms to openly explain how they incorporate AI in legal work. Analysis from Point Blank Law finds that 82% of general counsel expect transparency about AI use from outside counsel. This demand stems in part from concerns over reliability — just 33% of senior legal professionals express confidence in AI-assisted legal outcomes, per Morae Research.
Despite wide AI adoption, many firms are not formally documenting its benefits. A survey cited by Inside Legal AI indicates 66% of law firms do not track AI efficiency gains, although 69% use both legal-specific and general AI tools. Without evidence of impact, firms risk falling short of client expectations.
Legal experts emphasize the importance of demonstrating how AI improves service delivery. Casey Flaherty of Baretz+Brunelle highlights that clients want firms to show practical AI use, not just access to tools. Thomson Reuters CEO Steve Hasker warns firms ignoring AI may lose clients, talent, and revenue. KPMG’s 2026 Global General Counsel Outlook suggests firms that deliver measurable AI benefits will earn greater client loyalty.
Pricing models are also shifting: 87% of general counsel now prefer value- or outcome-based billing over traditional billable hours, reflecting a demand for measurable efficiency, possibly driven by AI use.
By the numbers:
- 87% — corporate legal departments using generative AI as of 2024.
- 82% — general counsel expect law firms to disclose AI use clearly.
- 33% — senior legal professionals trust AI-assisted legal outcomes.
Yes, but: While AI adoption is widespread, many firms currently lack formal processes to track and demonstrate AI’s efficiency or trustworthiness, which could hinder transparency efforts.
What's next: Expect increased client scrutiny of law firms’ AI disclosures and further integration of AI impact tracking in legal practice management.