In-House AI Adoption Stalling Amid Uneven Adoption Strategies

The Legal Disruptors 2025 Report from Summize found that 89% of companies use AI tools, but 53% have no formal AI mandate in place. Without structured guidance, many legal teams risk falling behind or unintentionally exposing their companies to security and compliance risks.

In-House AI Adoption Stalling Amid Uneven Adoption Strategies

Key points:

  • While 89% of companies use AI, more than half of legal teams lack a clear strategy, a report shows.
  • Data security and privacy risks are the biggest barriers to implementation.
  • Without structured AI integration, in-house counsel could lose influence in corporate decision-making.
  • Many legal teams still struggle with contract lifecycle management (CLM) adoption.

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.”

Customer Stories

See how leading enterprise in-house teams have scaled smarter with Legal.io's high-caliber flex talent.

More from Legal.io


ABA Sues Trump Over Alleged Intimidation Campaign Targeting Top Law Firms

The ABA has filed suit against Donald Trump, accusing him of using executive orders to intimidate major law firms from challenging his administration or supporting opposing causes.

Jun 17, 2025
Read More
Community Perspectives: As in-house counsel, how did you learn the actual business on which you advise?
Community Perspectives: As in-house counsel, how did you learn the actual business on which you advise?

In-house legal professionals talk about how they learned their industry in conjunction with their work.

Dec 29, 2022
Read More
Necessary Soft Skills In The Legal Industry
Necessary Soft Skills In The Legal Industry

Soft skill sets aren’t the main topic of conversation in a job interview, but they make up a large part of any position in the legal industry (and account for a large part of a hiring decision). If you are looking to shift your career or advance within your organization, focus on the following soft skills major companies have noted are crucial for current and considered employees.

Mar 31, 2020
Read More
Top U.S. Firms Curb Hiring Amid Growth Slowdown
Top U.S. Firms Curb Hiring Amid Growth Slowdown

Firms prioritize productivity over recruitment.

Feb 01, 2024
Read More
Baker McKenzie Prepares for Leadership Transition as Global Chair Milton Cheng Steps Down

Milton Cheng to conclude his term as Baker McKenzie's global chair in October 2025, with elections looming to select his successor.

Feb 18, 2025
Read More
Ready to hire?

Schedule a free consultation to discuss your hiring needs.

Free 15-min consultation
Legal.io Platform
5 star reviews
Hiring made smarter

Easy-to-use platform for hiring legal talent, managing spend, and optimizing your panel — plus an average savings of 50%.

Need Immediate Help?

Submit a hiring request and let our experts handle the entire process for you.