Rising AI Adoption Transforms Corporate Legal Departments, Survey Shows

The adoption of generative artificial intelligence (AI) within corporate legal departments has experienced a notable increase, according to the latest survey by FTI Consulting. The 2025 General Counsel Report highlights that 44% of legal department leaders are now utilizing gen AI, a substantial rise from the 28% reported in the previous year.

This shift reflects the growing recognition of AI’s potential to transform legal work. Legal departments are increasingly seeing AI not just as a tool, but as a critical component that can enhance efficiency and effectiveness in their operations. Wendy King, senior managing director at FTI Consulting, commented on the rapid pace of this transformation, indicating a broadening acceptance and implementation across the industry.

The survey, however, also reveals concerns about preparedness in managing AI-related risks. A majority of General Counsels (GCs) and Chief Legal Officers (CLOs) expressed unease regarding their department’s readiness to handle these challenges effectively. This response underscores the dual nature of technological advancements in the legal sector, where opportunity is closely accompanied by new responsibilities and risks.

AI’s integration into legal practices is anticipated to continue growing, driven by the persistent demand for more innovative solutions to complex legal challenges. As the landscape evolves, legal professionals must balance the pursuit of technological innovation with a vigilant approach to risk management and ethics in AI applications.