| | Join our conversation! |  | ![]() | The ProSearch Pulse This week we flagged the following: - Seven-figure genAI cost increases are colliding with a planning horizon of about 6 months, and the firms that stay flexible may be the ones that keep margins intact.
- This week, strategy is shifting from big-bet platforms to orchestration layers, as Baker McKenzie argues the real leverage is controlling the “harness” as models and vendors churn.
- Relativity is pushing genAI into the dataset itself with cited Q&A inside RelativityOne, a play for defensibility and retention as embedded AI becomes table stakes.
- Legal teams are still stuck in pilot mode, with 52% in genAI pilots and only 23% fully deployed, while agentic contract negotiation moves from experiment to rollout pressure by end of 2026.
| In This Issue: - Legal’s AI pilot logjam
- Big Law’s AI budget split
- Avoid long vendor bets
- RelativityOne gets embedded AI Q&A
| Legal AI rollout reality Legal teams stuck in genAI pilot purgatory  A JD Supra analysis warns uneven adoption and weak data foundations will leave legal departments behind as agentic AI arrives. Legal departments are moving on AI, but many are still in trial mode. In a JD Supra analysis, Scott Bien cites the latest Blickstein Group Law Department Operations survey: 52% of legal teams are still running generative AI pilots, while 23% say genAI is fully deployed and operational. Agentic AI is moving from concept to workflow. Key insights- Adoption remains uneven. 52% of departments are still in genAI pilots versus 23% fully deployed, widening the execution gap across legal operations.
- Agentic use cases are taking shape. 20% are actively deploying AI agents for contract negotiation and another 40% are exploring the technology.
- The biggest brakes are operational and risk-driven. 44% of legal professionals cite security and accuracy concerns, and many teams are dealing with tool fragmentation that limits interoperability.
- Bien’s rollout approach emphasizes discipline. Define success metrics and a go or no-go timeline before issuing logins, prioritize ROI-tied use cases, and assume tools may be replaced within two to three years.
The practical takeaway for in-house leaders is that progress depends on treating AI as a workforce change program anchored in data readiness. Bien sets a clear target for agentic automation: agents complete the first 80% of work while humans supervise and finish the final 20%. His forecast is direct: by the end of 2026, staying in pilots becomes a competitive disadvantage. When we work with partners on legal data strategy, this maps to a familiar pattern. Early planning and clear success criteria determine whether genAI becomes operational or stays in experimentation. The teams that move fastest translate legal work into measurable workflows, validate assumptions with controlled pilots, then scale. |
via www.jdsupra.com Read Now → |
| Build vs buy AI Law firms’ AI budgets sharpen build versus buy debate  Big Law is spending far more on recurring tech costs than new tools, even as a few giants fund proprietary AI builds. A new Bloomberg Law report puts a clear number on what many legal teams are feeling: legal AI is moving into the mainstream, but most Big Law technology budgets stay tight. Many firms allocate only a modest slice to “new technology,” while subscriptions and other recurring costs take up more of the technology spend. What Bloomberg Law reported- Roughly 67% of large firms said they spent under 2% of their 2025 budgets on building or buying new technology, a sign of cautious near-term investment
- Among firms with fewer than 500 attorneys, nearly 30% spent more than 5% of budget on new technology last year, suggesting smaller firms may be investing proportionally more
- Recurring costs are a major line item: one in three firms under 500 attorneys said they will spend more than 8% of 2025 budgets on technology subscriptions and recurring costs
- At the top end, firms are testing the economics of in-house AI. Kirkland & Ellis said it plans to invest $500 million to build a proprietary AI model
What this spending mix suggestsMost large firms plan to spend under 2% on new tech in 2025, even as leaders fund proprietary AI builds. Legal technology planning now looks like managing a fleet, not buying a single vehicle. Subscriptions keep teams moving quickly, but they also turn innovation into an operating expense that compounds quarter after quarter. Building can create leverage when scale and proprietary data matter, but it demands patience, governance, and sustained investment. Practical implications for legal leaders- Subscription-first strategies speed up adoption, but they require tighter vendor management, clearer usage controls, and disciplined renewal cycles
- Selective build decisions make sense when a firm has the data, scale, and differentiation to justify ownership economics
- A hybrid roadmap is the near-term default: buy for speed, build where proprietary advantage is real, and standardize guardrails so both paths stay governable
Where this is headingIndustry AI spending looks set to accelerate in 2026 and beyond. Many firms will revisit what they want to own versus rent. The firms that plan early, validate assumptions through pilots, and keep a clear line from technology choices to measurable practice outcomes will adapt fastest. At ProSearch, we see the same tension in eDiscovery and legal data programs. Speed matters. Defensibility matters. The teams getting ahead of it treat technology spend as a roadmap decision, then use an AI + HI model to turn legal data into strategic insight. |
via news.bloomberglaw.com Read Now → |
| Why Baker McKenzie is staying multi-vendor on AIWe’ve been listening for the practical voices in legal AI, the ones focused on operating reality rather than demo-day possibility. This episode stands out because Ben Allgrove is direct about time horizons, cost curves, and where firms can still preserve leverage. In Talking Tech from Legal IT Insider, host Caroline Hill speaks with Allgrove, Baker McKenzie’s CIO and a partner in London, about the firm’s generative AI posture. His view is straightforward: the model and vendor landscape is moving too quickly for long-term commitments. Baker is staying intentionally multi-model and multi-vendor, while still standardizing by practice area and use case so adoption does not collapse under tool sprawl. The value in the conversation is the operating detail. Allgrove separates tool training from capability training, then returns to the same control point: firms should keep their orchestration layer, the “harness” where multiple models and applications can connect. That ownership drives cost management, IP protection, scalability, and protection against client disintermediation. If you think you can predict more than six months out for genAI execution choices, you are pretty brave right now. What we’d flag- Six months is the planning unit: Allgrove says you are “pretty brave” if you think you can predict beyond six months for genAI execution choices, and he calls 12 to 24 month strategies “very optimistic.”
- Multi-vendor, not a free-for-all: Baker avoids an à la carte tool buffet by standardizing tooling by use case or practice area, reducing overwhelm and improving adoption.
- The harness becomes the power center: Keeping orchestration in-house is the difference between plugging in options and getting trapped inside one provider’s economics, roadmap, and client-facing surface.
What it makes us wonder- If model providers like Anthropic, OpenAI, and Google keep moving into workflow, what stays as the durable edge for legal-specific AI applications over the next two to three years?
- How many firms can absorb seven-figure genAI cost increases once consumption pricing becomes the norm, and which pricing models will legal teams and their partners accept?
- If hallucinations and sycophancy are “features, not bugs,” what does acceptable supervision look like at scale across real matters?
Credit to Caroline Hill and the Legal IT Insider team for pressing on market-structure questions, and to Ben Allgrove for grounding his answers in cost, change management, and client dynamics rather than hype. via www.youtube.com Listen Now → |
| AI moves into e-discovery Relativity adds aiR Assist Q&A to RelativityOneThe embedded tool answers natural-language questions with citations inside legal datasets, aiming to speed review while improving traceability and governance. Relativity has introduced aiR Assist inside its RelativityOne eDiscovery platform. It’s a natural-language Q&A feature that produces cited answers directly within legal datasets. The pitch is faster, defensible answers with less need to export sensitive information or switch to external tools. Key insights- In-workflow, source-tied Q&A
- aiR Assist is embedded in RelativityOne workflows and returns answers with citations.
- Review stays anchored to the underlying documents, supporting traceability and audit expectations.
- Built for legal and investigative work
- Relativity targets practical tasks like early case assessment, relationship mapping among key actors, and thematic analysis across large document collections.
- The point is faster time to insight with the evidence trail intact.
- Deposition and theory validation as a headline use case
- Another advertised workflow is validating legal theories ahead of depositions.
- In that context, showing how an answer was derived matters as much as getting to it quickly.
- The expectation is improved retention, expanded usage within existing accounts, and support for premium pricing or higher seat utilization.
There's a partner-led push to put the feature to work inside enterprise legal teams. Embedded AI is becoming standard across legal and compliance platforms. Relativity is betting that cited, in-workflow Q&A strengthens platform stickiness and increases recurring revenue. |
via www.tipranks.com Read Now → |
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