Global survey of 850 senior legal professionals reveals AI challenges stem from flawed implementation, not the technology

HOUSTON, July 08, 2026 (GLOBE NEWSWIRE) -- New research by Morae Global Corporation finds that despite nearly half of all legal organizations embedding AI deeply across their legal processes, a profound trust gap remains. Only 33% of senior legal professionals trust the results of AI-assisted legal work, while 67% are concerned the cost of human verification is outweighing the productivity benefits of AI. Nearly half are routinely rewriting AI outputs, yet fewer than 1 in 4 feels equipped to evaluate what they might be missing.

The findings point not to a failure of technology, but to a failure of change management and implementation. The potential of AI is being suppressed by a consistent set of underlying failures: data that is siloed, fragmented and ungoverned; governance frameworks that exist on paper but not in practice; and a verification tax that is quietly consuming the efficiency gains AI was supposed to deliver.

“The legal sector is embracing AI, but effective deployment is facing significant headwinds because the underlying data isn’t optimal. When only 26% of legal leaders feel confident in their information governance, there are inevitably concerns with safety, reliability and trust,” explains Shahzad Bashir, chairman and CEO of Morae. “The root of the problem isn’t the technology itself. It's that the industry is deploying powerful tools on a fragmented foundation. To realize the full potential of this transformative technology, we need to reimagine the foundation for AI with unified legal intelligence that integrates AI, data and legal expertise from the start.”

Read the full AI in Legal report 2026 here.

Adopted but Untrusted

• 46% of all organizations now have AI integrated or embedded across legal processes, with a further 31% using it regularly in defined workflows, such as legal research, contract review, and discovery.
• Only 49% say they feel more positive or confident about AI than 12 months ago, with just 21% saying AI productivity improvements have exceeded expectations.
• 48% of respondents name poor accuracy and hallucinations as the most significant challenges constraining effective AI use, while security concerns (41%) and fragmented data quality (36%) remain major operational hurdles.
   

The AI Verification Tax

• 67% of senior legal professionals are concerned that the cost of human verification and oversight might outweigh the efficiency benefits provided by AI.
• 89% believe AI-generated legal work should be checked by a human before use.
• 48% report that humans always or often materially change AI outputs before they can be used.
• 50% of respondents express high concern about potential liability if AI-assisted legal work leads to errors or adverse outcomes, while 62% are extremely or very concerned about the associated reputational risk from AI errors.
   

The Data Integrity Barrier

• 80% of legal professionals agree that effective AI use is heavily reliant on high-quality, well-governed data.
• 77% state that poor information quality undermines AI outcomes regardless of the tool's quality.
• Only 26% of legal leaders feel fully or very confident that their organization's legal information is prepared for effective analysis by AI.
   

The Governance Gap

• Nearly 1 in 3 organizations has no formal governance framework for AI-generated outputs at all.
• While 71% of legal teams have formal records retention and governance policies in place, only 30% are confident those policies are being applied effectively.
• Only 30% of legal leaders have confidence that their information is properly classified, whether it is privileged (32%), confidential (27%), or sensitive (26%).
• 39% of organizations describe themselves as truly prepared for upcoming AI-related regulations affecting legal services.
   

“Today, the legal industry is delegating standalone tasks to AI, while leaving the underlying infrastructure unchanged. AI overlaid on unchanged workflows and fragmented data will inevitably produce fragmented intelligence,” points out Shahzad Bashir, chairman and CEO of Morae.

“Until an AI environment is contextually aware and integrated across the full legal estate, the technology will continue to struggle to deliver the secure, trusted outcomes that legal professionals require. As an industry, we need to connect these siloed systems and enable cross-platform data to deliver unified legal intelligence.”

About Morae
Morae is a global legal solutions provider helping corporate legal departments and law firms operate with Unified Legal Intelligence. We connect client data, systems, and workflows across the legal function to deliver decision-ready insight that improves speed, clarity, and control. Founded in 2015, Morae combines legal consulting, technology, and operations expertise with deep in-house and law firm experience to help clients modernize how work gets done. Across contracts, discovery, information governance, and resourcing, Morae helps legal teams turn fragmented data into actionable intelligence and measurable outcomes. Learn more about Morae, our approach and solutions at morae.com and follow us on  LinkedIn.

About the AI in Legal Report
The Morae AI in Legal Report 2026 gathered responses from 850 senior legal professionals. Respondents were split evenly between in-house corporate legal departments and law firms in private practice and drawn from four markets: the United States, the United Kingdom, Australia, and the Middle East.

All respondents held senior roles with direct knowledge of their organization's AI use in legal services, including General Counsel, Heads of Legal Operations, Managing Partners, CIOs and CISOs. The average organization size was 3,832 employees, with average revenue of $1.5 billion and average investment in AI of $2.2 million. The research was conducted by Coleman Parkes from February to March 2026.

Media Contact:
Gareth Pettigrew
+1 250-240-0638
gareth.pettigrew@morae.com