Updated
Updated · Financial Times · Jul 30
In-House Legal Teams Build Custom AI Tools as 66% Expect Less Reliance on Outside Counsel
Updated
Updated · Financial Times · Jul 30

In-House Legal Teams Build Custom AI Tools as 66% Expect Less Reliance on Outside Counsel

3 articles · Updated · Financial Times · Jul 30

Summary

  • Upsider, Cox Media, Nanyang Technological University and Endava are adapting or building AI tools in-house to flag legal risks, speed reviews and handle niche tasks that off-the-shelf products may not cover.
  • 38.5 days is now NTU’s average case-closure time, down from 55 days, while Endava says third-party screening time has fallen 40% to 50% without increasing its roughly 35-person legal headcount.
  • 66% of in-house legal teams expected in 2025 to rely less on outside counsel as AI use rose, but budget pressure is pushing departments to stretch single tools across multiple jobs rather than buy many new products.
  • That improvisation carries risk: Cloc’s chief executive warned a tool validated for one use may not be safe for another, even as vendors including Harvey, Legora, LexisNexis and Thomson Reuters expand offerings.

Insights

As legal teams build custom AI workflows to slash budgets, will the billion-dollar legal tech vendor market suddenly face an extinction-level event?
If corporate lawyers are piping internal messages into AI to replace outside counsel, who is liable when the algorithm hallucinates a contract?
Could the rush to connect sensitive internal company data to generative AI models inadvertently trigger massive corporate privacy breaches?