Everyone knows the old adage that "hindsight is 20/20". But when tech evolves at breakneck speed, how do you develop the foresight to be prepared for what’s coming, and turn it to your advantage, rather than merely reacting to it?
We can see wave after wave of new technologies and legal AI tools coming at us, with Legaltech Hub identifying 1,014 agentic products offered by 806 vendors in March 20261, but there is so much hype, and often angst, surrounding them that it can be overwhelming.
While some in-house legal teams have moved beyond experimentation to embed these tools across their operations, many others remain in an uncertain holding pattern, unsure how and where to scale. How have leading in-house legal teams had the foresight not only to experiment with these tools, but to embed them at scale and realize large-scale efficiencies from them?
And how can you?
An eye on the legal tech suite: Legal-first tech on the horizon
The shift towards tech-enabled solutions has been driven by sustained pressure on in-house legal teams: budget constraints, rising regulatory complexity and an increasing need to demonstrate return on investment.
In-house legal teams are operating with a tech-suite that would have been unrecognizable only 3 years ago. Contract lifecycle management, e-signatures, document automation and legal research tools are now all considered the norm. But that's just the baseline.
Leading in-house legal teams have taken the next step: embedding AI into their daily operations and workflows, and are reshaping how they define and measure output, efficiency and value. While the first step is often to trial AI for specific steps, and test out use cases by enabling ad-hoc use. The greatest gains come not from using these tools in isolation for individual productivity, but from integrating them into end-to-end workflows redesigned to take advantage of what AI can offer.
But many in-house teams are not yet realizing these benefits. Some have held back because the tools still sit outside their risk profile or budget. Others lack the confidence to rely on technology they haven't yet had the chance to test at scale. And for teams already stretched thin by business-as-usual demands, finding the capacity to experiment, let alone transform, can feel out of reach. Too often, these tools are still viewed as niche solutions for a limited set of tasks, rather than core infrastructure for how legal work gets done. The caution is not unfounded. As the risk gatekeepers of the organization, in-house legal teams must approach these tools with a critical eye, assessing accuracy, confidentiality and regulatory compliance. And because legal works alongside every part of the business, suitability for legal contexts must be weighed alongside the ability to integrate with existing legal and business systems. But caution should not mean paralysis.
The most-effective transformations require in-depth analysis of legal processes and a clear understanding of the team’s maturity and risk appetite. The right partner can help in-house legal teams realize the potential benefits of these tools while managing the risks that come with adoption.
New operating models can facilitate tech-enabled success
In-house legal teams are typically so busy with 'business as usual' (BAU) work that they may struggle to empower those on their teams who are eager to try innovative new ways of working. Yet, AI tools and other new technologies can lighten that workload, freeing up time for thinking about how to work more strategically to meet business objectives.
But even then, technology alone can't do the heavy lifting for you. A circuit breaker is needed.
Technology alone does not deliver transformation—it must be supported by a legal operating model that can evolve to support rapid changes or advancements in technology.
Some teams are already familiar with outsourcing various aspects of their work, ranging from large scale contracting to legal document review, but are their current suppliers embedding AI into these workflows to enable long-term efficiencies?
This is where a legal-led Legal Managed Service (LMS) provider with strong AI credentials can help. They work in partnership with you to design, build and implement tech-enabled, transformational workflow changes — while giving you capacity back. This operating model streamlines key tasks and improves performance and efficiency in line with your organization's risk appetite and regulatory compliance requirements without carrying the full risk or expense of in-house innovation.
Beyond legal knowhow and seasoned judgment, these providers bring deep technical knowledge — honed through deploying and managing emerging tools across their own operations and for clients in diverse sectors. They stay close to the latest developments, have seen what works and what doesn't, and can draw on patterns from similar transformations to help you avoid common missteps and move faster.
Driving this change through a LMS model that embeds deep technical legal knowledge and acumen is a proven, lower-risk pathway to support innovation across the in-house legal team.
The advantages of this model include:
- Scalability — Services can scale in response to changing needs of in-house legal teams. This means that the LMS services delivery model can flex with demand, supporting in-house legal teams through peaks in workload, regulatory change programs or M&A activity without permanent headcount increases.
- Cost-efficiencies and predictability — Providers can take the cost and complexity out of in-house innovation, enabling legal teams to benefit from new tools without bearing the full risk of adoption. By leveraging the provider's investments in technology and proven processes, you gain access to capabilities that would be costly and time intensive to build internally. The upgraded service delivery model can be scoped with fees agreed in advance providing cost certainty.
- Confidence through partnership — Following the model of 'build/operate/transfer', a LMS provider can introduce a deep level of external knowledge and experience to give you confidence in your transformation, as well as robust governance frameworks and established delivery channels, without requiring significant internal restructuring or investment in unproven technologies. The LMS provider can thus help to optimize your current processes with minimal disruption.
- Reduced operational risk — A legal-led LMS provider is subject to higher governance and professional obligations than traditional Alternative Legal Service Providers (ALSPs), and can share legal and commercial insights to help the in-house team mitigate risks and build a more-resilient legal function.
- Access to continuous innovation — Providers stay at the forefront of technological and procedural developments, constantly evaluating new tools and approaches. You benefit from their experimentation and insight without having to run every pilot yourself.
- Organizational capacity building — By offloading routine work to a trusted provider, your in-house legal team is freed up to focus on higher-value, strategic business needs — while workflows continue to be refined and improved in the background. Once proven, these optimized processes can be transitioned in-house to strengthen your team's long-term capabilities.
Legal-led LMS providers can help you tailor a 'stepped approach' to transforming your legal function. This involves helping you identify what can be automated and outsourced today, then progressively evaluate more-complex tasks and issues appropriate for automation as your business continues to grow and requirements change over time. Whatever your starting point, an experienced legal-led LMS provider can help you move from experimentation to function-wide adoption at a pace that works for your team, embedding technology into core infrastructure.
Foresight doesn't come from a crystal ball. It comes from being prepared. In an imperfect and unpredictable world, those who take deliberate steps to meet the challenges on the horizon are best placed to turn them into opportunities.
Want to know more?
- Legal Managed Services
- How AI-enabled legal managed services are advancing the relationship between in-house counsel and firms
Authors: Alan Angell, Global Head of Legal Managed Services; Rishi Ballakhan, Partner, Risk Advisory and Manisha Madhusmita, Director, Risk Advisory.
