AI Impacts Legal Counsel Selection Processes
Fox examines AI's role in legal counsel selection with ACC, Everlaw, and LexisNexis insights.
Why it matters: AI integration is reshaping legal operations, reducing external costs, and enhancing efficiency and decision-making processes for legal professionals.
- Dan Fox discusses AI's influence on outside counsel selection using multiple reports.
- 58% of legal departments plan to cut external providers due to AI, per ACC, Everlaw.
- 55% of corporate legal departments are investing in AI, while 40% of law firms do so.
- Generative AI usage in legal departments rose to 44% in 2025 from 28% in 2024.
Dan Fox, senior counsel at Kyndryl, shared insights on AI's impact on selecting legal counsel. He drew from multiple sources, including the ACC and Everlaw report, highlighting that 58% of legal departments plan to reduce reliance on external legal providers due to AI. This marks a substantial increase from 25% in the previous year.
The Thomson Reuters report notes that 55% of corporate legal departments and 40% of law firms are investing in AI tools for greater efficiency and strategic advantage.
According to the 2025 Legal Department Operations Index, generative AI use in legal departments rose significantly to 44% in 2025 from 28% in 2024. This data indicates a shift towards adopting AI for more strategic decision-making within legal teams.
AI technology is expected to continue driving changes in legal operations, providing legal professionals with tools for enhanced decision-making capabilities and reduced costs related to external counsel reliance.
By the numbers:
- 58% — Legal departments planning to reduce external reliance due to AI.
- 55% — Corporate legal departments investing in AI tools.
- 44% — Generative AI usage in legal departments by 2025.