Factor Releases Study on GenAI Use in Legal Departments

Factor, a leader in the integrated law market, released its GenAI in Legal Benchmarking Report 2025, revealing a significant disconnect between AI access and effective utilisation 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. Utilisation Gap: While 61.2% of legal departments provide AI access to most or all team members, 33.7% of legal professionals report a lack of confidence in using enterprise AI tools. Many state they need additional support.
• “Pilot Purgatory:” 29.6% of legal departments restrict AI access to small pilot groups, rather than deploying it widely, which significantly constrains its potential impact.
• Leadership Minority: Only 12.1% of legal teams report leading the way in GenAI adoption, with the majority finding themselves at an average level (35.4%) or lagging (26.3%).
• Build vs. Buy Approaches: 47.5% of legal teams have built an internal AI interface or chatbot, while 40.4% have purchased specialised, legal-focused AI tools.

David Mainiero, VP of AI Enablement and Legal Transformation at Factor, said: "Legal departments are often forced to make high-stakes technology selections, much like Venture Capitalists, who bet millions on platforms that may become obsolete within months or even pivot away from their 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 (compared to a 46.2% market average) and 81.8% building internal AI interfaces (versus a 35.8% market average).

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

About Factor

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