The hidden costs of underinvesting in legal AI

One of its most consequential shifts in technology for decades is the use of artificial intelligence, particularly generative and agentic AI, which is moving rapidly from exploratory use to large-scale deployment across many industries.

The new operating environment for legal teams

Today’s legal teams face a paradox: many in-house lawyers spend significant time on low-risk, high-volume tasks that require legal oversight, such as contract review, answering legal questions, checking current regulations, and compliance reporting. Workloads are increasing, expectations are rising, all while being expected to deliver more with the same, or fewer, resources.

The unsanctioned use by executives of publicly available generative AI tools (also known as “shadow AI”) poses material organisational risks, from privacy breaches to hallucinated outputs that may generate plausible but incorrect citations or incomplete interpretations of law. This underscores the need for appropriately governed, legally trained AI models that meet enterprise standards for accuracy, security, and reliability.

Why legal AI has become a strategic imperative

Legal-specific AI or “Legal AI” tools are reshaping how both law firms and in-house legal teams operate, manage risk, and deliver value to their stakeholders. When deployed thoughtfully, it becomes a force multiplier for the legal function, allowing in-house lawyers more time to focus on high-value advisory work that advances business strategy.

The promise of AI extends far beyond efficiency. Legal AI tools can rapidly analyse thousands of documents, summarise case law with precision, draft legal correspondence, identify risks in contracts, and power internal chatbots that respond instantly to common queries.

Strengthening organisational performance and realising ROI

According to a recent Forrester Study commissioned by LexisNexis, ROI for legal AI is multi-dimensional. Organisations can expect reductions in external counsel reliance and spend, accelerated matter turnaround times, and increased legal team capacity. While legal staff report improved job satisfaction, more strategic focus, and enhanced engagement with the business.

Selecting the right AI solution: A disciplined approach

For executives authorising investment, the question is no longer whether to adopt legal AI, but how to select the right tool that meets the needs of the legal team. A structured approach is essential:

• Determine the key use cases for your organisation.
• Identify the most relevant functionalities and features to look for.
• Know what questions to ask your technology vendor for due diligence.
• Understand AI governance and risk management considerations.

Conclusion

Legal AI represents a step‑change in how organisations scale legal capability, strengthen governance, and support strategic execution. Boards that champion thoughtful, governed adoption will position their organisations to operate with greater efficiency, resilience, and clarity in an increasingly complex regulatory environment.

Free checklist: Choosing legal AI for your team

LexisNexis offers a checklist which sets out a series of steps for determining the most appropriate type of tools, the due diligence considerations and the importance of maximising your strategic impact.

About LexisNexis

LexisNexis® Legal & Professional provides legal, regulatory, and business information and analytics that help customers increase their productivity, improve decision-making, achieve better outcomes, and advance the rule of law around the world.

LexisNexis is committed to the responsible development of legal AI solutions. As part of RELX, LexisNexis follows the RELX Responsible AI Principles, ensuring human oversight and actively working to prevent the creation of unfair bias in AI solutions.