In an era where artificial intelligence (AI) is reshaping industries, legal professionals are not just passive observers. Most general counsel now demand clear visibility into how law firms utilize AI technologies in handling their legal matters. This shift underscores a broader expectation for transparency and accountability in the legal sector.

According to the recent "2026 KPMG Global General Counsel Outlook," a striking 82% of general counsel either agree or strongly agree that they expect their external law firms to meticulously track and openly share information regarding their use of AI. This emerging trend highlights a growing caution in the adoption and integration of AI within legal practices.

The report, which is based on insights from 468 general counsel and senior legal leaders surveyed across the globe in late 2025 and early 2026, points out that law firms are now scrutinized not only for their legal acumen but also for their ability to effectively implement, govern, and elucidate the technologies that support their services.

The demand for transparency can be attributed to several factors. Primarily, there is an increasing acknowledgment that AI, while powerful, carries potential risks that can impact client matters. Ethical considerations, data privacy, and the accuracy of AI-driven decisions are among the top concerns. As AI becomes more embedded in legal processes, general counsel insist on understanding exactly how these tools are applied to ensure that the technologies align with both legal standards and client expectations.

This push for greater AI transparency is set to redefine how law firms operate and engage with their clients. It emphasizes the importance of not just adopting new technologies, but also of fostering an environment of openness and rigorous ethical standards in their application.

For more details on the report, visit the KPMG website linked [here](https://kpmg.com/xx/en/our-insights/transformation/global-general-counsel-outlook.html).

The findings from the "2026 KPMG Global General Counsel Outlook" are a clear indication that as AI continues to permeate the legal sector, the ability of law firms to transparently manage and report on their AI usage will be a key determinant in their overall success and client trust.