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.
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.
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
- 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.
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