It all started as a torrid love affair.

Corporate counsel were captivated. Every promise sounded irresistible: better outcomes, faster answers, lower costs, and smarter legal strategies.

Then reality arrived: promises had to be proven.

Corporate counsel aren’t giving up on better outcomes. They’re giving up on the idea AI automatically delivers them.

12 months ago, 61% of corporate counsel said they loved it when outside law firms used AI to get better outcomes. We asked the same question again just three weeks ago.

The number plunged to 21%.

The pursuit of better outcomes hasn’t changed. The burden of proof has. Corporate counsel haven’t lowered their expectations. They’ve raised them.

BTI research reveals 6 reasons:

  1. Better Lawyers Beat Better Technology
    AI can accelerate work. It still can’t replace legal judgment, business insight, negotiation strategy, or advocacy.
  1. The Hype Outran Reality
    Clients heard extraordinary promises. Many are still waiting to see extraordinary results.
  1. Trust Took a Hit
    Hallucinations, sanctions, confidentiality concerns, and governance questions reminded clients AI isn’t risk-free.
  1. AI Became Table Stakes
    Almost every major law firm now claims sophisticated AI capabilities. Once everyone has it, no one wins because of it alone.
  1. Clients Know AI’s Limits
    Corporate counsel use AI themselves. They understand both its strengths and where it breaks down.
  1. Prove It
    Clients no longer ask, “Do you use AI?” They ask, “How did it improve my outcome?”

AI isn’t disappearing. Neither is corporate counsel’s thirst for better outcomes. The only thing disappearing in the last 12 months is the belief AI automatically creates those outcomes.

AI is no longer the story. Outcomes are.

The firms pulling away are quietly using AI to solve problems other firms can’t solve, reduce risks others miss, and deliver breakthrough outcomes.

That’s when corporate counsel will fall in love with AI all over again – not because it exists, but because it delivers.

Best in the market ahead –

MBR

Forwarded to you? Get your own copy every week! Subscribe below. 

Stay ahead of the market with BTI's latest research