Factor Releases Benchmark Study on GenAI Adoption in Legal Departments

NEW YORK, March 31, 2025 – Factor, the market leader in Integrated Law, today released its “GenAI in Legal Benchmarking Report 2025,” revealing a significant disconnect between AI access and effective utilization in corporate legal departments. The study of more than 120 in-house legal teams provides insights into the current state of GenAI adoption, highlighting both implementation challenges and proven strategies for success.

Key findings include:

  • Access vs. Utilization Gap: While 61.2% of legal departments provide AI access to most or all team members, 33.7% of legal professionals report they are not confident using enterprise AI tools and need more support.
  • Pilot Purgatory: 29.6% of legal departments restrict AI access to small pilot groups rather than deploying it widely, significantly constraining potential impact.
  • Leadership Minority: Only 12.1% of legal teams report “leading the way” in GenAI adoption, with the majority finding themselves at average (35.4%) or behind the curve (26.3%).
  • Build vs. Buy Approaches: 47.5% of legal teams have built an internal AI interface/chatbot, while 40.4% have purchased specialized legal-focused AI tools.

David Mainiero, VP, AI Enablement & Legal Transformation at Factor, says: “Legal departments are often forced to make high-stakes technology selections like Venture Capitalists, betting millions on platforms that may become obsolete within months or even just pivot away from the initial use case.”

The report also reveals that members of Factor’s Sense Collective are outpacing the market in AI adoption, with 100% providing broad AI access (vs. 46.2% market average) and 81.8% building internal AI interfaces (vs. 35.8% market average).

The full report, available for download here, includes detailed analysis of current adoption patterns, benchmarking data, and recommended best practices for legal departments navigating the AI transformation journey.

Join Factor’s David Mainiero and our industry panel, featuring LegalTech & AI Consultant, Peter Duffy and GSK’s Kelly Clay, for our upcoming webinar “GenAI in Legal: New Data on What Actually Works” on Wednesday, April 9th at 11am EDT. 

About Factor 

Factor is the market leader in AI-Integrated Law, working with corporate legal departments to integrate intelligent capabilities across legal and transactional functions such as contracting. With 10+ years of experience in enabling complex legal work at scale, Factor brings agile, practical solutions to address the many dimensions that must be solved for modernizing legal operations. From re-skilling legal teams to advancing high-impact applications of AI, Factor helps Legal and contracting functions achieve new levels of efficiency and business value.

Factor is not a law firm and does not provide legal advice. For more information, go to https://www.factor.law or LinkedIn.