Generative artificial intelligence is being increasingly integrated into contract management, a trend highlighted in the
2025 AI Impact on In-House Legal Teams Survey Report, released by SpotDraft. The survey illustrates that 70.8% of in-house legal professionals expect AI to transform contract management significantly over the next three years, marking a shift from treating contracts as mere administrative tasks to strategically leveraging them in business decisions.
Beyond contract management, legal departments foresee substantial AI-driven changes in other areas, including automated document analysis (66.2%), legal research analysis (53.2%), and knowledge management (50.6%). The survey also indicates that clause identification, analysis, and contract drafting are viewed as high-priority improvements within contract management.
While AI’s potential to drive efficiency is clear, in-house legal teams are approaching its adoption with caution. Only a modest 14.9% reported significant productivity gains due to AI, though 51.9% acknowledged some enhancement. Particularly notable is the variation in productivity gains based on the frequency of AI use; daily users reported more substantial benefits than their monthly counterparts. This suggests that consistent integration of AI can more effectively unlock its productivity potential.
Key barriers inhibit broader AI adoption, with integration into existing systems and processes being the most significant challenge for 59% of respondents. Other hurdles include data privacy concerns and the costs associated with implementation. Despite these challenges, the survey suggests minimal negative impact on employment within legal departments, as AI assists in managing increased workloads without a proportional increase in staffing.
The potential of AI is reshaping the skills landscape for legal professionals, emphasizing the importance of strategic thinking, understanding AI tools, and maintaining advanced legal knowledge. As the industry evolves, the professions’ adaptation to AI technologies will define the future of in-house legal teams.
For further insights, the full survey findings can be accessed on
SpotDraft’s website.