Fortune 500 Chief Legal Officer AI Survey: First Results from September 2025

Eudia Research - Survey reaching 220 legal leaders representing Fortune 500 and Global 2000 companies conducted September 2025.

Eudia recently hosted the largest gathering of in-house legal leaders focused on AI transformation. With over 200 attendees representing companies with $5 trillion in combined market cap, we conducted the first comprehensive survey of how chief legal officers view AI and the future of legal services. Here's what we learned.

Survey Demographics

Industry Representation

The summit drew leaders across diverse sectors, with Technology & Software (27%), Financial Services (24%), and Professional Services (13%) leading participation. Manufacturing (11%), Consumer Goods (9%), Healthcare (7%), Telecommunications (6%), and Energy (3%) rounded out the attendee base.

Seniority Level

74% of attendees held VP-level or above positions, including 19% C-Suite executives (CEOs, CLOs, CAOs, CCOs, CIOs), 15% at the EVP/SVP level, 20% VP/Directors, and 20% Partners/Managing Directors. The remaining 26% comprised Senior Management and Senior Counsel roles.

Functional Focus

80% of participants came from Legal/Compliance functions, with 12% from Business/Strategy/Operations and 8% from Investment/Finance, reflecting the cross-functional nature of legal transformation.

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Key Survey Findings: Billing Models

When we asked attendees "Is the billable hour still relevant in today's world?", the results were striking:

0% of respondents unequivocally answered "Yes"

This represents a significant shift in how legal buyers view traditional billing structures. The unanimous response from chief legal officers indicates growing pressure on the time and materials model that has defined legal services for decades.

Top Challenges with Outside Counsel

Survey respondents identified their three biggest frustrations with traditional law firm relationships:

1: Business model sustainability

67% said that current billing models are becoming unsustainable for their organizations. The disconnect between legal timelines and business velocity emerged as a critical pain point.

2: Value alignment

52% indicated that time spent doesn't correlate with value delivered. With outside counsel rates increasing annually, legal departments are questioning the ROI of traditional engagement models.

3: Knowledge retention

43% cited concerns about institutional knowledge leaving with outside counsel after each matter. Companies are increasingly focused on building internal capabilities rather than repeatedly paying for external expertise.

AI Adoption Reality Check

Interestingly, while enthusiasm for AI transformation is high, actual implementation tells a different story:

• 78% of legal departments are still in pilot or planning phases

• Only 12% report production-level AI deployment

• 62% cite "lack of clear ROI" as their biggest barrier

This gap between aspiration and execution suggests the market is still searching for the right partners and platforms to enable transformation.

Areas of Divergence

The survey also revealed some surprising skepticism:

• 34% of respondents worry AI could "hollow out" junior lawyer development

• 41% expressed concern about over-reliance on technology for judgment calls

• Nearly half believe some legal work will "always require human expertise"

These findings indicate that successful AI adoption in legal will need to address not just efficiency gains but also professional development and ethical considerations.

Our Analysis

The data suggests the legal industry is at an inflection point. The unanimous rejection of traditional billing models by CLOs, combined with the cautious pace of AI adoption, indicates that legal departments are ready for change but need partners who understand both the technology and the nuances of legal work.

The pressure on time and materials billing appears to be intensifying, particularly as clients increasingly question the correlation between hours billed and value delivered. When combined with sharp annual rate increases, this creates what many respondents described as an "unsustainable" dynamic.

For organizations looking to capitalize on this shift, the opportunity lies in providing alternatives that address both the economic and knowledge retention challenges identified by survey respondents.

Survey reaching 220 legal leaders representing Fortune 500 and Global 2000 companies conducted September 2025.