"A survey of law department professionals by Everlaw and the Association of Corporate Counsel titled "Generative AI's Growing Strategic Value for Corporate Law Departments" reveals that most organizations (61%) are "somewhat" or "very" likely to push back on law firm pricing models. But 59% report being unaware of whether their law firms are currently using GenAI for their matters, and 80% are not currently encouraging or requiring their firms to use the technology."
"Law departments' own use of the technology, meanwhile, has more than doubled in the past year, allowing in-house counsel to take on more work themselves. "Momentum is building against the billable hour," Everlaw's Petra Pasternak writes in a summary of the report. "Firms that connect GenAI-enabled efficiency to fair, transparent pricing will differentiate themselves as modern, client-first partners." The data draws on responses from 657 in-house professionals in 30 countries."
A global survey of 657 in-house professionals across 30 countries shows law departments increasing use of generative AI and rising expectations of outside counsel. Sixty-one percent of organizations are somewhat or very likely to push back on law firm pricing models. Fifty-nine percent do not know whether their law firms are using GenAI, and eighty percent are not encouraging or requiring firm use. Law departments' own GenAI adoption has more than doubled in the past year, enabling in-house counsel to take on more work themselves. Momentum is building against the billable hour; firms aligning GenAI efficiency with fair, transparent pricing gain a competitive advantage.
Read at Above the Law
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