GenAI Revolutionizes Corporate Legal Departments: ACC Report Reveals Economic Impact and Career Implications

The Association of Corporate Counsel (ACC), in collaboration with Everlaw, a cloud-based litigation and investigation platform, has released a new report highlighting the transformative impact of Generative AI (GenAI) on corporate legal departments. Titled “GenAI and Future Corporate Legal Work: How Ready Are In-house Teams?,” the report explores the rapid changes GenAI is bringing to in-house legal teams, particularly in terms of economic benefits, cost reduction, and its implications for legal careers. The findings were unveiled at the ACC 2024 Annual Meeting, the world’s largest gathering of in-house counsel. The report is based on input from over 475 chief legal officers (CLOs), general counsel, in-house counsel, and legal operations professionals from U.S. corporate law departments. It also includes a career guide by the ACC on utilizing AI effectively.

One of the key insights from the report is the significant economic impact GenAI is expected to have on legal departments over the next three years. Nearly half (49%) of those surveyed anticipate reduced operational costs due to AI integration. This marks a sharp increase from previous years, with 33% of respondents in 2023 citing AI as a tool for cost control, up from just 12% in 2022. Additionally, 25% of respondents already report cost savings from using GenAI, while 58% expect to reduce their reliance on outside legal service providers due to AI—a significant jump from the 25% recorded in the 2023 survey. Many cited cost-effectiveness as the primary reason for cutting down the number of external law firms they work with.

ACC President and CEO Veta T. Richardson emphasized the swift integration of GenAI in corporate legal departments, noting its profound effect on budgets, operations, and staffing. Similarly, Gloria Lee, CLO of Everlaw, pointed out that AI is rapidly reshaping in-house legal functions, with a quarter of legal teams already seeing cost savings and a broader transformation across the legal industry underway.

The report further highlights the growing use of GenAI among legal professionals. A third of CLOs are using GenAI on a daily basis, and 79% employ it at least once a week. Among all legal professionals, 23% have integrated GenAI into their daily workflows, while over two-thirds (70%) use it at least weekly. However, despite this widespread adoption, less than a quarter believe their legal department is fully prepared for the talent implications of this technology. Larger departments with over 100 legal staff are more likely to have designated GenAI experts (64%) compared to mid-sized (42%) and small departments (25%).

While there is overall optimism about the career-enhancing potential of GenAI, concerns remain, particularly among mid-level attorneys. A majority of respondents (59%) expressed excitement about the positive career impact of GenAI tools, though only 26% felt their department was adequately prepared for these changes. Many anticipate that GenAI will continue to improve work speed (83%), enhance creativity (57%), and foster new skills development (51%). However, concerns persist about ethical dilemmas (47%) and the potential degradation of certain legal skills (38%). Legal operations professionals showed the highest level of enthusiasm about GenAI’s potential (73%), whereas mid-level attorneys were the most apprehensive, with 67% worried about job losses.

The report concludes with a nine-step roadmap designed to help legal professionals at all levels leverage AI to advance their in-house careers. These steps include building a foundational understanding of AI, experimenting with and integrating AI tools, and becoming an AI-powered leader by utilizing AI for strategic advantages and advocating for ongoing investment in AI technologies.

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