Survey: Four in 10 Law Firms Don't Disclose AI Use to Clients
Bloomberg Law surveyed 760 legal professionals across law firms and corporate departments and found significant gaps in how firms handle AI transparency, alongside growing demand for data center expertise and mounting geopolitical pressure on deal work.
The disclosure gap stands out. Four in 10 law firm respondents said their firms do not disclose attorney AI use on client bills, raising questions about client expectations and billing practices as AI tools become standard in legal work.
Geopolitical Risk Halts Deals
Half of respondents from the largest law firms said clients have put deals on hold because of geopolitical risk. One-quarter said clients have exited or plan to exit deals entirely.
The instability is reshaping how firms approach transactional work. Clients are making decisions based on factors beyond traditional deal structure.
Data Center Work Drives Specialization
About one-third of mid-sized firm respondents said their firms have created cross-functional teams dedicated to data center matters. Larger firms are adopting this approach at higher rates.
The surge in data center development is forcing firms to build capabilities they didn't need two years ago. Legal demand tied to infrastructure projects is now a practice driver.
What This Means for Your Firm
The survey points to three operational pressures: firms need clear policies on AI for Legal work and client disclosure, geopolitical risk assessment is now part of deal due diligence, and specialized expertise in emerging sectors like data centers is becoming competitive.
For paralegals and legal staff, understanding AI tools used in legal work is increasingly necessary to support client matters and firm billing practices.
Bloomberg Law released the full report on June 5, 2026. The survey captures how the legal industry is responding to AI adoption, regulatory change, and economic shifts.
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