RESEARCH
For the sixth year in a row, Major, Lindsey & Africa has partnered with the Association of Corporate Counsel to bring you the Law Department Management Benchmarking Report. The 2025 report is an ideal tool for departments seeking more data on trends in legal department staffing and spend, work allocation, law firm and ALSP usage, and technology based on responses from nearly 400 legal departments around the world.
Some of the findings include:
Legal Growth Sectors: The industries with the highest number of lawyers per billion $ in revenue are information (10.2), professional services (9.7), pharmaceuticals and medical devices manufacturing (7.8), and finance (7.7). Companies in the information and professional services sectors, especially, show a strong upward trend in the last five years.
Technology Adoption: The major spike in AI tech adoption is a significant enabler for law department efficiency. The percentage of companies that implemented AI tools increased from 34% last year to 52% this year.
Mid-sized Prioritization: Mid-sized ($1B-$5B) companies are in a phase of building out their internal legal capabilities. Staff increases in this segment, coupled with a shift towards a greater proportion of inside legal spend, indicate a strategic move to handle more work in-house. This strategy is likely driven by a desire for greater control over costs and the development of internal expertise as these companies continue to grow and mature.
Outside Counsel Spend: There is a clear trend of consolidating relationships with fewer law firms, with the median number of firms used by companies declining from 14 to 10 in the past year. Simultaneously, there has been an increase in the adoption of Alternative Legal Service Providers (ALSPs), particularly among companies with over $1 billion in revenue.
Legal Department's Strategic Expansion: The data reveals an uptick in CLO oversight, with a 7% increase in compliance responsibilities, an 8% rise in risk management oversight, and a 5% jump in ESG (Environmental, Social, and Governance) leadership.