Rising Legal Costs Spark Innovation Among Corporate Legal Teams
As outside counsel rates continue their upward trajectory, in-house legal departments are getting creative with their solutions. A recent article from The Indiana Lawyer explores how companies are adapting to record-breaking rate increases, with some firms now charging up to $2,500 per hour for top attorneys.
According to the LexisNexis CounselLink Trends Report, the first half of 2024 saw billing rates climb 4.8% compared to the same period last year. While this represents a slight decrease from 2023's 5.4% jump, it's still the second-highest increase since reporting began in 2013.
One notable trend is the growing adoption of alternative legal service providers. Toyota Material Handling, Inc.'s vice president of legal affairs and general counsel, Lea Ann King, shared her positive experience with one such provider:
"Because the attorneys we've worked with [at Axiom] are highly experienced former in-house attorneys themselves, the work product and ease of working with them has been outstanding."
The article also explores how companies are leveraging artificial intelligence to reduce costs, with a recent Association of Corporate Counsel report indicating that 58% of legal departments expect to decrease their reliance on outside counsel due to GenAI adoption – more than double the percentage from 2023.
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