New Study Exposes Critical Competency Gap as Legal Teams Push AI Adoption but Neglect Safeguards
Legal departments are rapidly increasing their AI budgets—by an average of 33%—yet only 20% report reaching what’s called “AI maturity.” This growing gap in AI competency is creating clear winners and losers across the legal sector.
Despite more than two-thirds of legal leaders acknowledging moderate to high risks associated with AI, fewer than 40% have put in place basic protections like usage policies or staff training. Most teams turn to general-purpose chatbots such as ChatGPT instead of legal-specific AI tools, increasing exposure to risk.
Meanwhile, law firms are adopting AI but passing little to no cost savings onto clients. In fact, 58% of firms have not reduced their rates for AI-assisted work, and 33% have actually increased charges.
Key Findings from the Study
- Widening Competency Divide: Only one in five organizations have achieved AI maturity. The majority remain stuck in slow proof-of-concept phases, intensifying the performance gap.
- Ignoring Risks: Most legal teams recognize AI risks but fail to implement safeguards. Over half lack basic protections like staff training or clear usage policies.
- Surging AI Investments: Three out of four legal departments are increasing AI budgets substantially, trying to keep pace with competitors.
- Law Firms Holding the Gains: AI-driven productivity gains are benefiting firms more than clients, with many firms maintaining or raising fees.
- Strong Demand for Better Solutions: 94% of in-house leaders want turnkey AI solutions combining vetted legal AI tools with expert support, avoiding burdensome internal rollouts.
Global AI Adoption: U.S. Trails Behind
The research, conducted among 607 senior in-house legal leaders across eight countries, highlights significant geographic differences in AI adoption. Singapore leads with one-third of legal teams reaching AI maturity, the U.S. sits mid-pack, and Switzerland currently reports zero legal teams at full AI maturity.
Why This Matters for Legal Teams
Legal departments face a tough balancing act. They must accelerate AI adoption to boost efficiency and reduce costs but often lack the expertise to do so safely. Relying on generic chatbots creates risk, and law firms are capitalizing on AI without passing savings to clients.
Experts emphasize the need for legal teams to partner with AI specialists who can fast-track maturity while managing risk effectively. This approach can help departments capture real value instead of just incurring higher costs.
For legal professionals looking to build AI skills responsibly, exploring targeted training and vetted AI tools can be a practical step forward. Resources such as Complete AI Training's courses for legal professionals offer relevant options to enhance AI competency safely.
The study underscores that AI adoption in legal is more than a technology upgrade—it’s a defining factor in future competitiveness. Legal teams that advance thoughtfully will gain an edge, while those lagging risk falling behind.
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