In a recent survey conducted by the Association of Corporate Counsel (ACC) called the “2024 Chief Legal Officers Survey,” nearly 60% of law departments reported significant rate hikes from their outside law firms. Additionally, over 40% of law departments were given a mandate to cut legal costs. As a result, operational efficiency was the top strategic initiative for their law department in the upcoming year, with 40% of CLOs stating that finding cost-effective solutions and increasing productivity within legal teams was a priority.
Furthermore, the Thomson Reuters Institute’s “2024 Report on the State of the US Legal Market” revealed that 70% of general counsels (GCs) are planning to bring their legal work in-house in order to reduce outside counsel spending. This move is seen as a response to the rising costs of outside counsel and the need for legal teams to increase efficiencies.
In addition to these findings, 45% of CLOs are planning to invest in new legal technology to improve overall efficiency within their department. This shift in focus towards finding cost-effective solutions and increasing productivity highlights an ongoing trend in the legal industry.
