Closing the AI Readiness Gap: What General Counsel Need to Know to Stay Competitive

Artificial intelligence (AI) has quickly moved from novelty to necessity in the legal sector. Recent surveys indicate that enthusiasm for AI is high among in-house lawyers, but their readiness is lagging. A 2025 keynote hosted by the Association of Corporate Counsel (ACC) reports that 59% of in‑house professionals are enthusiastic about what AI could do for their careers. Yet, only 42% feel prepared for its impact (Source: docket.acc.com).

This enthusiasm–preparedness gap creates risk for general counsel (GCs) who need to lead their organisations through an era of rapid technological change while also meeting heightened expectations from boards and clients.

Disclaimer: To capture the broader industry direction and forecast the challenges arising in Australia, we have utilised global sources in this article. Complete list of references in the footer notes of this blog.

Closing the AI Readiness Gap: What General Counsel's Need to Know to Stay Competitive

Summary:

  • Enthusiasm outstrips readiness – Nearly six in ten in‑house lawyers are excited about AI, yet fewer than half feel prepared. This enthusiasm–preparedness gap puts general counsel at risk of being left behind.
  • In‑house teams have an edge – Corporate legal departments face constant pressure to do more with less; Greenfields’ summary notes that they’re better positioned than BigLaw to adopt AI and free up time for high‑value work.
  • Clients demand AI‑savvy partners – Firms that leverage AI to automate tedious tasks and deliver data‑driven insights are winning client favour, while those that lag frustrate clients.
  • Boards must get digital‑ready – Directors need digital literacy to steer their organisations through technological disruption; otherwise, boards risk falling behind and missing opportunities.
  • Bridging the gap is achievable – Developing a technology roadmap, upskilling teams piloting repeatable AI use cases, evaluating outside counsel’s AI readiness and measuring return on investment can close the readiness gap and position legal departments as strategic leaders.

In‑house lawyers being better placed to adapt to AI explains that corporate legal teams are under pressure to do more with less and therefore have strong incentives to maximise AI adoption. AI can handle routine tasks such as drafting letters, policies and training presentations, freeing in‑house lawyers to focus on high‑value, strategic matters. These insights underscore why enthusiasm alone is not enough; General Counsel must convert that enthusiasm into capability.

Enthusiasm Without Preparation: A Recipe for Risk

Generative AI tools promise to transform how legal work is done. In many corporate legal departments, lawyers are already experimenting with AI to summarise documents, draft non‑disclosure agreements (NDAs) and analyse regulations. Yet the data suggest that most General Counsel feel underprepared for AI’s implications. Lack of preparedness can undermine the ability to deploy AI responsibly, particularly when the technology touches areas such as data privacy, attorney–client privilege and ethical decision‑making.

The ACC keynote by tech strategist Kate O’Neill highlights why AI readiness matters. She notes that the rise of generative tools like ChatGPT offers unprecedented opportunities but also exposes organisations to governance, bias and privacy risks. Without a clear plan, legal departments may adopt tools ad hoc, leaving gaps in oversight and training. Building competence and confidence requires more than dabbling with AI pilots; it demands a structured roadmap. (Source: docket.acc.com)

Clients Want AI‑Savvy Partners

While in‑house teams grapple with readiness, corporate leaders are increasing pressure on law firms to innovate. Lexitas’s 2025 trend report observes that general counsel and corporate leaders are looking for clear differentiation among their outside counsel. Firms that lag in adopting technology frustrate clients, whereas those that leverage AI gain a distinct competitive edge. (Source: lexitaslegal.com)

Adopting AI also signals a commitment to innovation and value. Clients increasingly prioritise partnerships with firms that demonstrate efficiency, accuracy and data‑driven insights. For General Counsel, this means that selecting outside counsel is no longer just about legal expertise; it is also about technological prowess. A firm’s ability to harness AI ethically and strategically may impact service quality, turnaround times and cost predictability.

Boards also play a critical role in ensuring organisations remain competitive. Greenfield’s article on digital transformation for board members warns that directors must develop digital literacy and actively guide their organisations through technology shifts. Without such engagement, boards risk falling behind, leaving their organisations vulnerable to digital disruption and missing opportunities to leverage AI and other technologies.

Bridging the Readiness Gap

The gap between enthusiasm and preparedness is not insurmountable. Below are practical steps General Counsel can take to develop AI readiness and ensure their departments and outside partners remain competitive:

1. Develop a Technology Roadmap

Many legal departments lack a formal plan for adopting AI. Diligent’s research found that while more than two‑thirds of General Counsel are open to using generative AI (Source: Diligent), three out of four legal departments still lack a technology roadmap. A roadmap should:

  • Identify pain points and goals (e.g., reduce contract turnaround times or improve board‑meeting preparation).
  • Prioritise use cases where AI can deliver measurable impact, such as automating routine document drafting or summarising board packets.
  • Set governance and ethical guidelines to ensure compliance with data‑privacy rules and professional responsibilities.

2. Build Competence and Confidence

The ABA’s Formal Opinion 512 stresses that attorneys must maintain a “reasonable understanding” of generative AI and cannot abdicate their professional judgment by relying solely on AI outputs. To develop competence:

  • Invest in training on AI fundamentals, prompt engineering and ethical use.
  • Encourage cross‑functional collaboration with IT, privacy and cybersecurity teams to manage risks and share expertise. (Source: todaysgeneralcounsel.com)
  • Establish internal playbooks for when and how AI tools may be used—for example, using AI for first‑pass redlines while requiring human review before finalising contracts

In addition to technical training, General Counsel should understand their role in cybersecurity governance. Greenfields’ summary of the in‑house counsel’s role in boosting cyber security in Australia clarifies that legal departments are not responsible for implementing technical standards but must monitor legal risks and ensure the organisation meets its obligations under legislation such as the Privacy Act. By partnering with security experts and staying abreast of evolving cybersecurity laws, General Counsel can better integrate AI tools without compromising data protection.

3. Pilot Repeatable Use Cases

Rather than deploying AI broadly, begin with repeatable tasks that lend themselves to automation. ACC’s “AI Counsel” column lists practical in‑house use cases such as:

  • Learning unfamiliar regulatory areas quickly by using AI to summarise key requirements.
  • Generating first drafts of NDA reviews, redlines and board minutes.
  • Analysing “take‑it‑or‑leave‑it” contracts to surface major risks.

These pilots help teams build confidence, measure time saved and refine governance processes before scaling up. (Source: docket.acc.com)

4. Evaluate Outside Counsel for AI Readiness

Given clients’ expectations, General Counsel should evaluate how law firms are adopting AI. Questions might include:

  • What specific AI tools does the firm use, and how do they enhance efficiency and accuracy?
    Lexitas warns that firms that fail to adopt AI risk frustrating clients and losing work.
  • How does the firm ensure data privacy, regulatory compliance and ethical use?
    Regulators are moving quickly to introduce AI laws; for example, the EU AI Act requires transparency, accountability and data protection.
  • How does the firm communicate its AI usage to clients?
    Transparency about AI use and quality controls helps align expectations and avoid the misalignment uncovered in LexisNexis surveys.

5. Measure and Communicate ROI

Adoption should be tied to clear metrics. AI can free up time; Thomson Reuters estimates that automating repetitive tasks could save lawyers four hours per week and generate about US$100,000 in new billable time per lawyer annually. But General Counsel should also track improvements in turnaround times, error rates and client satisfaction. Quantifying these benefits will make it easier to justify further investment and demonstrate the value of technology to the board. (Source: legal.thomsonreuters.com)

Conclusion: AI Readiness Is a Strategic Imperative

AI is reshaping legal work at an unprecedented pace. Clients expect their law firms and in‑house teams to harness technology to deliver faster, more accurate and more strategic services. At the same time, ethical and regulatory considerations demand thoughtful governance. By closing the enthusiasm–preparedness gap, developing structured roadmaps and partnering with AI‑ready outside counsel, general counsel can ensure they remain trusted advisors in a technology‑driven world.

Resources Referenced in This Post

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

About Greenfields

Founded by Managing Director, Catherine Wolfe-Coote, Greenfields is a market leader in Legal, Company Secretary & Corporate Governance appointments. Having a capable, well-established team, we offer bespoke and agile services which do not fall into the traditional ‘agency’ or ‘head hunting’ categories.

We have a diverse portfolio of cross-sector clients including top ASX listed organisations, non-listed organisations, multinationals, small and medium size enterprises, and not-for-profits, making us well positioned to provide expert advice on remuneration, market trends and best practice across Legal, Company Secretary & Corporate Governance.

As a Diversity & Inclusion champion, we take pride in assisting organisations in achieving progressive goals. We strive to deliver balanced shortlists and adhere to robust policies on Diversity & Inclusion; Data Storage & Privacy; Workplace Health & Safety; Modern Slavery; and Environmental, Social and Governance.

Known for our market knowledge, technical understanding, deep network and robust processes, Greenfields are regular contributors and sponsorship partners with the Governance Institute of Australia (GIA), the Association of Corporate Counsel (ACC) and the Australian Institute of Company Directors (AICD).

Ethics Index 2024 AI Report | Governance Institute of Australia

Ethics Index 2024 AI Report | Governance Institute of Australia

Artificial Intelligence (AI) is revolutionising industries and influencing our daily lives, but its ethical implications continue to raise important questions. The Ethics Index is an annual nationwide survey that examines perceptions of ethical issues in Australian...