June 26, 2026


In-House Counsel Desire AI Enhancements in Law Firms but Hesitate to Push for Change

On June 22, Thomson Reuters unveiled its annual Future of Professionals Report, highlighting a stark misalignment between client expectations and the actual application of Artificial Intelligence (AI) in legal practices. Despite the legal industry's buzz around AI's transformative potential, the findings reveal a substantial disconnect in its practical deployment by law firms.

Steve Hasker, President and CEO of Thomson Reuters, expressed in his foreword that although many firms have developed AI strategies, these innovations have scarcely trickled down to daily operations, resulting in unmet expectations not due to technological shortcomings, but organizational inertia.

The report's key revelation is that a whopping 78% of clients yearn for AI-driven enhancements from their law firms, yet a mere 6% report seeing these improvements actualized. Alarmingly, 32% of clients are considering switching firms next year if their current legal providers fail to satisfactorily integrate AI.

Surprisingly, while 74% of respondents use AI several times a week, the survey suggests that many lawyers employ AI in unsanctioned, invisible ways to their firms. Only 66% of those in firms with a clear AI strategy feel that AI has met or exceeded their work quality expectations.

The data underscores a critical gap: clients want AI integration and better communication about its use from their law firms, who, despite recognizing the benefits in formal programs, fail to meet client expectations. This ongoing discrepancy is due to clients' reluctance to demand change, a trend consistent with past surveys indicating a general hesitance among clients to challenge or dictate the operations of their external counsel.

Historically, surveys, including one by the Blickstein Group in 2025, have consistently shown that clients do not perceive their firms as innovative or as leveraging technology effectively. Moreover, a significant majority encouraged AI use and believed it could enhance value, yet the actual implementation lags severely behind these expectations.

Why this gap persists is partly explained by the cultural and professional alignment between in-house and outside counsel, who share similar educational and professional backgrounds, fostering a mutual resistance to change. Many in-house counsels avoid micromanaging their outside counterparts, fearing to undermine the trust and authority vested in them. Moreover, the inherent risk aversion in legal practices further complicates the adoption of new technologies like AI, which are often perceived as risky and potentially more costly by outside lawyers.

Despite the apparent demand for innovation, the inertia of long-term relationships and the daunting prospect of seeking new legal partners keep many firms in a state of complacency. This scenario is likely to persist unless business-driven demands for efficiency and innovation prevail, forcing a shift in the legal landscape.

Until such a shift occurs, the legal industry may well continue to operate under its traditional paradigms, with only superficial nods towards the revolutionary potential of AI.