AI in Legal Departments: Promise Meets Reality in 2024

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. 

💡 Learn how your peers are preparing for 2025's AI challenges and other pressing issues facing legal departments.