Three Ways That AI is Reshaping In-House Legal Hiring

In-house legal departments are experiencing notable shifts in hiring trends at all levels starting with the general counsel role. A recent study from Russell Reynolds Associates found that GC turnover last year was at its highest since 2018 and, in a departure from previous years, the majority of new appointments were internal to the organization.

Of 70  Fortune 500 GC new hires in 2024, 54% were internal candidates, up from 39% in 2023, reported Law360®, noting, “It marked the first time that internal hires have outnumbered external ones since the study began.”

This leadership churn coincides with a broader recalibration in legal hiring. According to the results from a national study conducted earlier this year by Major, Lindsey & Africa, 39% of in-house legal departments have already adjusted their hiring criteria in response to new AI technology and 49% are now prioritizing general AI literacy in new hires.

“As AI begins to reshape legal work, many legal departments are rewriting their hiring playbooks to bring in tech-savvy lawyers,” reported Legaltech News, noting that 86% of AI-enabled legal teams report time savings, 78% reaped productivity gains and one-third achieved measurable cost reductions.

Taken together, these shifts signal that legal departments are not merely embracing AI—they are redefining what it means to build a high-performing team. Changes are underway with in-house legal department hiring, fueled by the emergence of new dynamics that are shifting how internal resources are allocated.

The New In-House Talent Equation

The acceleration of legal AI adoption has created a paradoxical hiring environment. While some anticipated widespread job elimination, the reality has proven more nuanced. Rather than reducing headcount, most in-house teams are reallocating talent strategically by favoring skills that complement AI’s capabilities and reflect new operational demands.

Here are three ways that AI adoption is impacting in-house legal hiring:

1. The rise of the legal technologist

Perhaps the most visible shift is the emergence of hybrid roles that blend legal expertise with technological proficiency. In-house legal departments increasingly seek attorneys who can not only practice law but also understand how to optimize AI tools for maximum effectiveness.

These “legal technologists” typically demonstrate competencies in areas such as prompt engineering for large language models, AI output validation and quality control, legal data management and governance, and AI implementation strategy. In fact, a 2024 report from PwC found that lawyers in U.S. roles where “AI Skills” are a key factor are able to obtain a pay premium of 49%.

2. Specialization over generalization

As AI tools increasingly handle routine work that once occupied junior attorneys’ time, the career path for in-house legal professionals is evolving. Some GCs are starting to think about the shape of their department in search of the right mix of experience. Entry-level positions are likely to require immediate specialization in specific areas rather than general legal knowledge.

“Companies want generalist GCs, but increasingly specialization is the path to job security,” reported Corporate Counsel, noting a Gartner study that “found in-house generalist roles are on the decline, with those posts at growing risk of being replaced by non-lawyer staff, automation or specialized applications.” Particularly sought-after specializations include privacy law, regulatory compliance, intellectual property strategy and complex negotiations.

3. Emotional intelligence as a differentiator

Perhaps counterintuitively, the rise of AI has amplified the importance of distinctly human skills. As machines handle more analytical tasks, the premium on emotional intelligence, relationship management and strategic thinking has increased. In-house legal departments are now more frequently assessing candidates for cross-functional collaboration abilities, changing management experience and social intelligence. A survey by CareerBuilder found that 71% of hiring managers said they value emotional intelligence in an employee more than IQ.

“Paradoxically, as technology has emerged as a key component in legal delivery, emotional intelligence has become more important than ever,” writes Mark Cohen in Forbes. “Lawyers that combine IQ, professionals skills and EQ will never be replaced, no matter how smart AI becomes.”

AI-Powered Legal Tools for In-House Teams

For in-house counsel, adapting to this transformed hiring landscape requires both strategic vision and practical adjustments. This includes fundamentally rethinking what talent is needed and how to attract it, and it also includes making sure that the department is making optimal use of legal AI tools in its workflows.

LexisNexis® offers AI-powered legal tools for corporate legal teams, including legal research, drafting, summarization and document analysis tools that deliver on the potential of generative AI technology. The platform delivers answers to your in-house legal team that are grounded in the world’s largest repository of reliable and exclusive legal content from LexisNexis, with industry-leading data security and attention to privacy.

These resources are accessible to in-house legal teams via Lexis+® General Counsel Suite. Lexis+ GC Suite is an all-in-one information resource that provides in-house counsel with a vast collection of legal resources, breaking business and legal news, and Practical Guidance content, while LexisNexis Protege™ in Lexis+ AI® further benefits general counsel by streamlining legal research, automating routine tasks and enabling data-driven strategic decision-making.

Click here for more information about Lexis+ GC Suite or to register for a free 7-day trial.