In-House Teams are Positioned to Gain More AI Productivity Than Law Firms

In-house teams are in a better position to “lead the AI productivity revolution” and translate it into measurable business value than law firms, as Checkbox writes in a recent article. 

The difference stems from fundamentally different economic models. Law firms remain tied to the billable hour, where revenue is directly linked to time spent on client work.  AI enables lawyers to complete tasks faster, firms can face a potential reduction in billable hours. This dynamic has largely confined law firm AI adoption to reducing inefficiencies in non-billable activities, demonstrating technological sophistication to clients, and responding to growing client demands for transparency around AI usage. 

In contrast, in-house legal teams operate under incentives that align closely with AI’s strengths. The share of general counsel actively using AI in their legal departments jumped from 44% to 87% over the last 12 months, according to the General Counsel Report from Relativity and FTI Consulting. Corporate legal departments are evaluated on outcomes, responsiveness, cost management, and their ability to support the business efficiently. When AI shortens the time required to complete legal work, the result is additional capacity rather than lost revenue. That capacity can be redirected to handle more matters internally, respond faster to business needs, and reduce reliance on outside counsel, thereby creating direct, measurable savings.

In addition, as legal departments continue to face increasing demand and persistent workload constraints, newly available capacity becomes immediately valuable. When AI is embedded into structured workflows, routine requests can be automated, matters can be routed more effectively, and legal leaders gain greater visibility into departmental workloads and spending decisions. This combination of efficiency, visibility, and cost control means in-house teams will gain most from AI, strengthening their strategic role within the business.