Keeping Legal Work In-House: The Shift Driven by AI and Cost
Nearly half of the in-house lawyers surveyed in the 2025 RollOnFriday In-House Lawyer Survey expect their teams to grow at the expense of external law firms. This shift is largely due to the rising costs of external counsel and the increasing use of AI tools.
A General Counsel (GC) from the energy sector pointed out, “There’s better value hiring an in-house lawyer and combining this with AI.” Similarly, an in-house lawyer in private equity noted that AI enables junior lawyers to develop their knowledge independently, which senior lawyers can then review.
Changing Role of In-House Lawyers
Technology is pushing in-house lawyers to move beyond summarising legal principles, tasks that AI tools like ChatGPT and Copilot can handle. Instead, their value lies in explaining risks and identifying mitigation strategies. This evolution demands a shift in focus to higher-level advisory work.
Some GCs mentioned that in-house teams are often more cost-effective and commercially savvy than external lawyers. One healthcare GC said external lawyers are “too expensive and the advice is limited,” adding that external lawyers struggle with commerciality. A GC in financial services echoed this sentiment, stating their in-house lawyers are generally better and far cheaper than external firms.
Cost Pressure on External Firms
Several respondents highlighted the rising charge-out rates from law firms as a key driver for expanding in-house teams. One head of legal in the energy sector described firm rates as “becoming ridiculous,” while an insurance in-house lawyer noted a push to reduce spend on external counsel, partly due to inflated junior salaries at firms.
Another GC in transport explained the cost benefits of hiring in-house: “If the person has the right skillset, savings can be really high—we reduce external spend and pressure on our budget.”
When External Expertise Still Matters
Despite the trend toward in-house growth, many legal teams still rely on external lawyers for specialist expertise. A TMT in-house lawyer said, “We will use generalists in-house, and use law firms for specialist work.” Similarly, a GC in travel mentioned that they outsource only for major strategic litigation or where external expertise is necessary.
Some GCs also noted that business growth sometimes increases the volume of work requiring private practice support. For example, a GC in energy observed, “We’ll need more private practice support as the nature of the work is volume.”
Balancing In-House and External Legal Support
While there is a clear move toward expanding in-house teams to reduce costs and better align legal advice with business needs, external firms still play a vital role in handling complex or specialist matters. The balance between in-house efficiency and external expertise is becoming a key consideration for legal departments.
For legal professionals looking to leverage AI in their roles, exploring structured AI training can be valuable. Resources such as Complete AI Training’s latest AI courses offer practical guidance on integrating AI tools effectively within legal teams.
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