Still Human: Why In-House Lawyers Matter More Than Ever in the Age of AI
The rise of artificial intelligence has sparked a wave of transformation across the legal industry. From contract analysis to legal research, AI tools are handling tasks that once consumed hours of a lawyer’s time. In some corners, this has led to speculation that legal departments will soon be lean, automated machines.
But here’s the truth: even in a world of highly capable legal AI, in-house counsel are not only relevant—they’re indispensable. At its best, AI is a powerful accelerator. It reduces friction, automates the repetitive, and offers insights at scale. But legal practice isn’t just about answers. It’s about responsibility, judgment, and relationships. And those are still profoundly human.
Ethical and Strategic Accountability Can’t Be Outsourced
Every legal decision exists in a landscape of risk and responsibility, and AI doesn’t bear the weight of fiduciary duties, professional ethics, or reputational consequences. When something goes wrong, AI doesn’t answer to regulators, stakeholders, or the press. Humans do. That accountability and responsibility is what gives in-house lawyers their voice at the table—and their authority to make the call.
While AI accuracy is improving, businesses simply can’t rely blindly on AI legal tools. In a May 2024 study, Stanford University found that even bespoke legal AI tools hallucinate, or present false information, between ~15-35% of the time, highlighting the need for human oversight. Recognizing this and other limitations presented by AI, early AI-focused regulations like the EU AI Act stress the importance of human oversight. The ABA Task Force (2024) similarly frames AI as useful but stresses lawyers’ duty to supervise technology and protect privilege. The California Bar's guidance on the use of AI goes further, stating that "a lawyer must not input any confidential information of the client into any generative AI solution that lacks adequate confidentiality and security protections." At minimum, human lawyers are imperative for fact-checking, maintaining privilege, and ensuring security of confidential client information.
AI Handles Tasks, Humans Handle Judgment
AI can highlight a risky indemnification clause, suggest redlines, or summarize a complex contract. But it can’t decide how much risk is acceptable given your company’s strategic goals, market position, or appetite for confrontation. In-house lawyers bring more than legal know-how. They bring judgment: the ability to weigh competing priorities, read between the lines, and make decisions in imperfect conditions.
Trust Is a Human Currency
In-house lawyers are often among the most trusted advisors within a company. They understand the business beyond the black-and-white of the legal code. They know the players, the backstory, and the internal politics. When a crisis hits—or a sensitive issue bubbles up—executives don’t turn to a dashboard. They turn to someone they trust. AI might generate a summary, but it won’t earn your CFO’s confidence.
The Future Is Human And Machine
AI isn’t replacing in-house legal teams. It’s reshaping how they work—and freeing them up to focus on what they do best. Alternative legal services providers (ALSPs) like FLEX are leading the way in combining human expertise with AI efficiency. Our lawyers bring years of expertise across industries, including an ever-increasing amount of experience with AI-related laws, regulations, issues, and tools. The result? Faster legal processes, smarter decisions, and better outcomes—for everyone.