In-house legal teams increasingly recognize artificial intelligence as a valuable tool, but adoption is stalling due to security concerns, lack of training, and unclear use cases, according to the Legal Disruptors 2025 Report from Summize.

The report, based on a survey of more than 250 in-house legal professionals in the U.S., found that while 89% of companies use AI tools, 53% have no formal AI mandate. Without a structured approach, legal teams risk missing out on AI’s potential to improve efficiency and provide strategic insights.

“Rather than just focusing on compliance and saying ‘no’ to AI adoption, legal professionals should take a commercial approach—understanding how AI can improve efficiency across the business and positioning themselves as strategic advisers in the process,” said Tom Dunlop, CEO of Summize, according to Law.com.

Security and Uncertainty Block AI Expansion

Data security risks remain the primary reason legal teams hesitate to embrace AI, with 45% of respondents citing privacy concerns.

Other obstacles include:

• Lack of clear AI use cases: 31% of respondents identified this as a challenge.
• Limited training and AI expertise: 37% of legal teams struggle with AI proficiency.
• Implementation costs: 29% cited financial barriers.

Despite these barriers, AI’s role in legal operations is only expected to expand. The report suggests that legal teams can become AI experts within their organizations, helping ensure safe and effective implementation rather than merely serving as compliance gatekeepers.

“There’s a real opportunity for legal to step into a leadership role here, advising the business on the safe and effective use of AI rather than just serving as the final checkpoint before approval,” Dunlop said.

Contract Management Still a Challenge

Beyond AI adoption, legal teams continue to struggle with contract lifecycle management (CLM).

• 32% of respondents said CLM isn’t widely used in their organizations.
• 31% reported difficulties managing contract intake processes.

Many in-house teams still rely on manual methods, which consume time and resources. Dunlop noted that companies often view CLM as a legal-specific tool rather than a businesswide solution—a mindset that limits adoption.

“For adoption to be successful, it has to integrate seamlessly into existing company workflows, not operate as a separate system,” Dunlop explained.

Legal Teams Must Shift from Risk Managers to Business Leaders

Another key challenge is that legal teams are not always seen as strategic partners. While 40% of respondents identified the CEO as their strongest C-suite ally, legal teams have weaker relationships with revenue and marketing executives.

Dunlop argues that in-house counsel must align more closely with business objectives to increase their influence.

“If legal wants to be seen as a strategic leader, they need to align themselves with revenue-generation functions,” he said. “The more involved legal is in supporting growth and commercial objectives, the more influence they will have at the executive level.”