Nearly half of in-house legal professionals report internal conflict because of AI, new study shows
Two-thirds of legal professionals report that they’ve had to override or correct legal information generated by artificial intelligence, according to a new study from Paragon Legal that examines how in-house legal departments are using the technology. (Image from Shutterstock)
Two-thirds of legal professionals report that they’ve had to override or correct legal information generated by artificial intelligence, according to a new study from Paragon Legal that examines how in-house legal departments are using the technology.
Among its other findings, the study shows that only one in five legal professionals place high trust in AI-generated legal work, while nearly three in five don’t feel comfortable submitting AI-drafted documents to a regulator or court. Nearly half of legal professionals also report AI automation has led to internal conflict in their department.
“For in-house leaders, this shift signals a need for balance, not retreat,” according to Paragon Legal, which surveyed more than 250 legal professionals last fall. “Legal departments should continue testing AI for routine, low-risk work while reinforcing the human oversight that protects quality, compliance and reputation.”
“The goal isn’t to eliminate human input; it’s to deploy technology in ways that make your people more effective,” Paragon Legal also said.
The study shows that most in-house legal professionals are using AI tools to increase speed or efficiency. About one-fourth have fully automated compliance alerts, one-fourth have document classification and one-fourth have risk flagging. Others reported that they have automated caselaw summarization, drafting memos or internal guidance, and drafting internal policies.
The study also shows which tasks that legal departments consider off-limits for AI. Forty-five percent say final contract approval and 42% say ethics and compliance judgments are not acceptable uses of the tools.
“This data shows AI’s current limitations in producing legally reliable work without human input,” according to Paragon Legal. “Teams may use it to draft or summarize, but nearly all rely on attorneys to validate and finalize the output before submission.”
When asked about plans for the next year, most legal professionals report that their department’s use of AI will likely increase. The study also shows that 43% expect that increased AI use will result in reduced hiring or staffing needs.
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