New Benchmarking Report Reveals Problems with AI Adoption

In a recent LawNext blog post, Bob Ambrogi discusses a new benchmarking report that reveals problems with AI adoption. Despite artificial intelligence steadily making inroads in corporate legal departments, there are key challenges around trust, return on investment, training, and data governance. 

The “AI in Legal Departments: 2025 Benchmarking Report,” published by Counselwell and Spellbook, surveyed 256 in-house legal professionals. The report revealed that 38% of legal departments already utilize AI tools, and 50% are actively exploring their use. Most early adopters are utilizing AI for contract-related tasks, including drafting, reviewing, analyzing, conducting legal research, and translating documents. Future growth is expected in operational areas like workflow automation and document generation, indicating a shift from basic legal functions to broader enterprise support.

ChatGPT leads tool adoption among users, followed by Microsoft Copilot, and then specialized platforms like Spellbook, as well as Gemini and Claude. User satisfaction is high, with 97% reporting effectiveness, and 68% using these tools on a weekly basis or more. Yet barriers persist. The most significant is a lack of trust in AI outputs, cited by 60% of respondents, with data privacy concerns close behind. These issues overshadow more traditional barriers, such as cost and integration.

Although efficiency gains are widely reported, only 7% of departments use key performance indicators to measure the value of AI, and 40% remain uncertain about the return on investment. Most legal departments spend modestly on AI. However, a large portion is unsure of their total spend, highlighting a need for better budget awareness. 

Furthermore, while confidence in AI’s long-term role is rising, few foresee AI completely replacing legal professionals. Instead, AI is considered a decision-support tool rather than a decision maker. Knowledge gaps remain a critical hurdle, however. Many legal professionals admit to having a limited understanding of AI, but only 48% of organizations have formal AI policies in place. 

Respondents emphasized the need for improved training, clearer regulations, and enhanced skill development to fully leverage AI’s potential. Overcoming problems with AI adoption will depend on building trust, establishing effective governance, and fostering literacy across legal teams.