As the legal profession braces for the impending generative AI wave, crucial shifts are already happening beneath the surface. Over the past two decades, the legal industry has seen a significant rise in the number of in-house lawyers, more than double their number, outpacing the growth of lawyers in Big Law firms which saw less than a third increase.
This substantial growth in the in-house legal sector implies a transformative shift in the industry where historically, work would typically be assigned to external counsel. This reflects the rising trend of clients preferring to keep legal tasks within the business domain instead of outsourcing to law firms.
Comparable timelines from 2000 to 2022 demonstrate this shift quite clearly, revealing that while the number of lawyers working in-house and at America’s largest 100 law firms—popularly known as Am Law 100 — were roughly equal in the early 2000s, the path since 2010 has diverged remarkably, resulting in a 77% growth for the in-house legal segment compared to just a 23% expansion for the Am Law 100 legal professionals. Smaller law firms, the so-called Second Hundred, have even witnessed a poorer growth rate, registering just a 10% increase.
While change seems to be the new constant across the legal industry, greater transformation is expected with the arrival of generative AI. However, these recent changes all signify that the industry isn’t merely waiting for the next technological breakthrough— it’s already navigating through remarkable developmental trends.
Discover more about the shifting landscapes of the legal profession in
this article
on American Lawyer.