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AI in Legal Departments: Promise Meets Reality in 2024

November 2024
By Kelsey Provow

AI in Legal Departments

 

The widespread adoption of artificial intelligence in legal departments has arrived – but not without challenges. According to Axiom's 2024 "View from the Inside" Survey Report, 99% of in-house legal teams now use AI for work purposes, with nearly half (48%) using it frequently. 

Despite this enthusiastic embrace, the implementation landscape reveals significant gaps. While 89% of in-house lawyers believe AI's benefits will outweigh its risks, 47% of organizations lack formal AI policies. Perhaps more concerning, 83% report using AI tools not provided by their company and 81% acknowledge using unapproved tools. 

83% of in-house legal teams use AI tools not provided by their company

The disconnect between AI adoption and governance raises red flags. Every surveyed lawyer acknowledged risks in using AI for legal work, with cybersecurity (42%), data privacy (38%), and intellectual property concerns (37%) topping the list. For teams using AI frequently, half identified cybersecurity as their primary concern. 

Top 4 risks of using AI in legal work: cybersecurity, data privacy, intellectual property

Where are legal departments applying AI? Contract drafting leads the way at 56%, followed by contract analysis and legal document drafting (both 39%), and legal research (37%). However, only 16% of respondents report receiving adequate training for using AI in legal work – yet 100% of those without sufficient training continue to use AI tools. 

The barriers to proper AI implementation are substantial: 

  • 41% cite compliance, regulatory, or legal risks 
  • 39% point to costs and implementation time 
  • 38% struggle with insufficient IT infrastructure 
  • 35% worry about bias and lack of transparency
Looking ahead, legal departments are investing in AI-enabled tools over the next 12 months: 
  • 35% plan to implement AI-powered contract review 
  • 35% will adopt contract lifecycle management platforms 
  • 29% are exploring virtual legal assistants 

For general counsel, the message is clear: AI adoption is inevitable and already happening, with or without formal oversight. The challenge now is to harness its benefits while implementing proper AI governance, training, and risk management frameworks. 

💡 Learn how your peers are preparing for 2025's AI challenges and other pressing issues facing legal departments.

Access More Insights on AI  Get the 2024 In-House Survey Report

 

Posted by Kelsey Provow
Kelsey Provow is an award-winning writer and editor passionate about sharing unique and thought-provoking narratives. After obtaining her master's degree in professional writing, she has spent over a decade writing across multiple industries, including publishing, academia, and legal.