In-house legal AI budgets increase as teams shift from pilots to deployment
Legal department AI budgets have risen by 67% as teams transition from experimental pilots to full-scale deployment.Summary
A new Deloitte survey reveals a significant surge in legal department AI investment, with budgets increasing by an average of 67% over the past year. The industry is undergoing a major transition, moving from the question of whether to invest to determining how and where to deploy technology. Currently, 61% of in-house teams are in the deployment stage, and the percentage of departments not using AI has plummeted from 76% in 2024 to just 2% today.
While 58% of respondents expect their team sizes to remain stable, the composition of legal departments is shifting toward more technology and non-legal professionals. Consequently, AI and technology literacy have become critical skills, with 96% of leaders identifying them as essential for the next few years. Training methods are also evolving, with a preference for continuous education, simulations, and competency-based progression.
This shift is also placing immense pressure on outside counsel. In-house leaders expect law firms to leverage AI to reduce costs and improve service quality, with many general counsels targeting 20-40% cost cuts. As a result, 85% of respondents anticipate that AI will significantly alter billing practices, potentially reducing hourly billing from 72% to 44% over the next few years. Legal professionals must adapt to these changes by building AI fluency to remain relevant in a restructuring industry.
(Sourceļ¼Complete Ai Training)
