Source: LexisNexis
In the traditionally conservative world of in-house legal departments, a quiet revolution is taking place. According to recent research by LexisNexis highlighted in Dylan Brown’s March 2025 analysis, nearly 20% of in-house lawyers would consider leaving their positions if their departments fail to invest in artificial intelligence technologies.
This revelation comes at a pivotal moment for corporate legal teams, who find themselves caught between tradition and transformation. Only 13% of in-house legal departments currently implement new technology at a rapid pace, creating a stark contrast with the 65% of lawyers who believe technology skills will become crucial within the next three years.
The Talent Retention Crisis
The most surprising insight from the research is the direct connection between technology adoption and talent retention. With approximately one in five in-house lawyers willing to seek new opportunities if their departments don’t embrace AI, General Counsels face a dual challenge: modernizing operations while retaining top legal talent.
“We are in an era where traditional skills are unlikely to last you for a whole career and people will have to focus on diversifying their skillset to remain relevant,” notes an unnamed Group General Counsel at a Bristol-based asset lender.
This sentiment reflects a broader shift in how legal professionals view their career trajectories. The modern in-house lawyer increasingly sees technological adaptability not as an optional skill but as a fundamental aspect of career development and job satisfaction.
The Response Gap
Despite growing awareness of technology’s importance, corporate legal departments are struggling to respond effectively to change. LexisNexis reports that two-thirds of legal professionals rate their department as merely adequate, slow, or very slow in adapting to new challenges.
Nick West, Chief Strategy Officer at Mishcon de Reya, suggests a more targeted approach: “One legal department’s priority might be trying to drive productivity improvements into a high-volume contracting process, whilst another’s might be creating a better ‘legal front door’ due to an overwhelming number of requests.”
This customized approach acknowledges that technology adoption isn’t one-size-fits-all but should align closely with specific business objectives and pain points.
The Rise of Legal Operations
At the center of this transformation is the growing importance of legal operations. Nearly half (44%) of in-house lawyers believe legal ops will become increasingly critical in the coming years, establishing itself as the bridge between traditional legal expertise and technological innovation.
Tony Randle, Partner for Client Tech & Service Improvement at Shoosmiths, advises departments to start by “mapping out the areas that are going to have the biggest positive impact.” This pragmatic approach focuses on identifying where technological change will deliver the greatest commercial benefits.
The influence of legal operations extends beyond in-house teams. Darren Mitchell, Chief Operating Officer at Simmons & Simmons, notes that “legal operations can drive change in the practice, including ensuring more efficient workflow, better alignment of technology to deliver higher quality, more efficient client outputs and deliver more robust pricing decisions.”
Budgeting for Change
Recognizing the importance of technological investment, 51% of respondents believe budgets will increase to support innovation initiatives. This financial commitment reflects growing acknowledgment that technology isn’t merely an overhead cost but a strategic investment in both operational efficiency and talent retention.
The Path Forward
For General Counsels and legal leaders navigating this changing landscape, several strategic considerations emerge:
- Technology adoption should be strategic rather than comprehensive. Identifying specific areas where innovation delivers the greatest value allows for focused investment with measurable returns.
- Skill development must accompany technological implementation. Simply implementing new tools without developing team capabilities creates adoption barriers and limits potential benefits.
- Legal operations provides the framework for successful transformation. Increasingly, dedicated legal ops professionals are becoming essential for bridging the gap between legal expertise and technical innovation.
- Talent retention strategies must acknowledge the growing importance of technological engagement. As younger lawyers enter in-house roles with different expectations, departments that fail to embrace innovation risk losing their most adaptable talent.
The Two-Track Future
As in-house legal departments look toward the next three years, a divided landscape appears increasingly likely. On one side will be departments that embrace technology, develop new skill sets, and position themselves as strategic business partners. On the other will be teams that maintain traditional approaches, potentially facing both operational challenges and talent retention issues.
For General Counsels, the message is clear: technology strategy has evolved from an operational consideration to a fundamental aspect of departmental leadership. Those who recognize and respond to this shift will not only improve efficiency but also retain the talent needed to navigate an increasingly complex legal landscape.
The gavel has dropped. The verdict is clear. The future of in-house legal will belong to those who can successfully marry legal expertise with technological innovation.
Read more: LexisNexis
