ACC and MLA release benchmarking report

The Association of Corporate Counsel (ACC) in collaboration with Major, Lindsey & Africa (MLA) revealed the results of the 2025 ACC Law Department Management Benchmarking Report. This annual report is now in its sixth edition and serves as a vital resource for measuring the financial and operational performance of corporate legal departments.

This year’s report sheds light on essential areas, including the structure of legal teams, distribution of workloads, and investments in legal technology. A standout finding indicates a significant rise in the adoption of AI-powered tools, with the percentage of companies implementing these technologies jumping from 34% to an impressive 52%. Though legal tech still represents a small fraction of overall legal budgets, smaller firms are increasingly directing more of their financial resources towards innovative solutions, signalling a clear strategic pivot towards enhancing efficiency.

The 2025 survey equips leaders in law departments with a detailed understanding of industry benchmarks, enabling them to evaluate their operations against peers and identify areas where they can enhance value and performance. Veta T. Richardson, President & CEO of ACC, commented on the findings, stating “With rising economic uncertainty, shifting geopolitical dynamics, and the growing impact of tariffs and regulatory change, corporate lawyers are under more pressure than ever to deliver value while controlling costs.” She emphasised that the report is designed to aid chief legal officers and general counsel in making informed decisions regarding staffing, workload distribution, legal expenditure, and technology amidst an unpredictable environment.

Similarly, Greg Richter, Partner and Vice President at MLA, reflected on the evolving landscape, stating “The demand for sophisticated legal and business expertise continues to grow, even as teams and budgets evolve.” He noted that investment in legal is not solely about resourcing but also about preparing legal teams to navigate change effectively. The report outlines a roadmap for legal departments to realise their strategic potential and contribute significant value to their broader organisations.

Key highlights from the report reveal some notable trends. Mid-sized companies have increased their median total legal staff from 16 to 20, contributing to an uptick in internal legal spending from £2.8 million to £3.1 million. Moreover, there is a visible trend towards consolidating relationships with fewer law firms, as shown by the median number of firms used decreasing from 14 to 10 over the past year. Concurrently, the adoption of Alternative Legal Service Providers (ALSPs) has surged among larger companies.

Despite a shift in some fee arrangements, the prevalence of hourly rates remains significant. Nevertheless, more firms are exploring fixed or capped fee models, especially in intellectual property and litigation, reflecting a growing demand for predictable pricing in specific fields. The report also highlights a surge in Chief Legal Officers’ (CLOs) responsibilities, with compliance, risk management, and environmental, social, and governance oversight all showing marked increases.

For access to the comprehensive report, which includes an overview of survey results and comparisons with previous years, interested parties can contact Amy Hawkes Repke or Jennifer Silver directly. Further details are available on the ACC's website.