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In-House Innovation Report: Corporate Teams Gain ROI and Leverage

A new report by Everlaw and Wakefield Research finds that GenAI adoption continues to surge among corporate law departments, with the impacts already reflected in outsourcing trends and cost savings.

See how 300 U.S. in-house legal professionals are adapting to a rapidly changing business environment.

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Key Findings from Everlaw and Wakefield Research

Which best describes your team’s use of GenAI for legal work?*

*0% indicated having no plans to test/use GenAI in the next year

GenAI adoption hits critical mass

Everlaw’s 2026 report reveals that an overwhelming majority of legal teams today – 86% – for legal work. That’s a rapid growth from 52% in 2025 and 23% in 2024, based on similar Everlaw surveys.*

Thirty-seven percent of respondents are already using GenAI extensively, and 49% for select legal tasks. The rest are either testing GenAI or planning to use the tools in the next year.

How is AI affecting how much work you outsource to law firms?

AI gives in-house teams greater control over work and costs

More than half of legal teams that engage law firms – 54% – are outsourcing less to outside counsel thanks to both GenAI and agentic AI. Another 44% expect to rely less on law firms within the next year.

These percentages are even higher in departments with more extensive AI use, underscoring an ongoing shift in how legal work gets done as AI tools grow in sophistication and legal teams seek ways to control costs.

How are your expectations changing of outside counsel that use GenAI or agentic AI?

Clients expect more from firms on AI adoption and pricing

As more legal professionals in-house and at law firms adopt AI tools, the conversation around its impacts is evolving. A majority of respondents who work with law firms say they expect transparency about AI use.

They also want their outside counsel to demonstrate measurable improvements in efficiency – and for those gains to be reflected in the bill.

When will most legal work be priced by outcome rather than billed by hours?*

*0% chose “Will never happen.”

The billable hour will lose its dominance within three years, say 47%

Survey respondents expect AI-related pricing changes for legal services to come fast. About a half believe outcome-based pricing will eclipse hourly billing in the next three years. Seventeen percent believe that change will come even sooner – in the next year.

Extend the horizon to five years, and 81% say outcomes will drive billing. The findings signal to law firms that the time to start thinking about new ways to bill for legal services is now.

Get the Report

Download your free copy of the new industry report from Everlaw and Wakefield Research.