AI Is Reshaping Client Expectations for Outside Counsel

Client expectations of outside counsel are evolving as AI becomes embedded in everyday legal work. Thomson Reuters writes about the shift in a recent article based on conversations with leaders at Parker Poe.

Rather than asking whether a firm is permitted to use AI tools, corporate clients now want to understand what tangible advantage a firm’s use of these tools provides over what their in-house teams can already accomplish.

A few years ago, conversations between firms and clients about AI centered on caution: whether confidentiality could be preserved, whether the technology was reliable, and whether firms had assessed the associated risks. Now in-house legal departments have adopted similar tools, narrowing the gap between what firms and clients can produce.

This shift requires firms to demonstrate real value rather than mere participation in the technology.

Baseline AI capability no longer differentiates firms. What separates them is how effectively lawyers use AI to elevate research quality, document review, and trial preparation, freeing them to spend more time on judgment-driven strategy. Parker Poe emphasizes the evaluation of new tools in respect to client benefit, risk oversight, and workable implementation.

Genuine integration, not marketing language, is what builds client trust, and that in-house counsel question firms at the matter level about specific workflows, oversight protocols, and safeguards rather than accepting general claims of AI capability.

Firms and clients alike should strengthen governance frameworks addressing data handling, confidentiality, and accountability for AI-assisted work product. Enterprise risk management practices account for AI-related risk when setting outside counsel guidelines, particularly regarding data security and human review protocols.

Boards and general counsel consider how AI adoption affects overall legal operations, including consistency of practices when managing matters across multiple legal teams or jurisdictions.