Nearly 60% of small businesses and 28% of law firms say they’re using AI in their daily work, according to Thomson Reuters and the U.S. Chamber of Commerce. While law firms of all sizes are deploying AI tools across business and legal functions, a significant share of in-house legal teams and business clients say they have no idea whether their outside counsel is using AI on their matters generally, which specific attorneys or professionals are their AI contacts, what tools they are using, and most importantly, effectively reporting how they are using to advance the client relationship and create efficiencies 

Firms are building the capability, but they’re not building the story. 

That matters more than it sounds. Clients fill silence with assumptions. In a market where every firm claims innovation, the firms that can explain what they’re doing, and perhaps more importantly, what it means for the client, are the ones that are winning the business. 

The Number That Should Concern Every Firm 

According to the 2025 LMA/Above the Law Decision-Makers Survey, 70% of law firm marketing leaders are now leading firm wide AI adoption, yet most firms have nothing to show for it. Marketing budgets for AI-related initiatives remain below 5%, and three in four firms measure AI success by efficiency gains rather than competitive positioning or growth. The tools are in the room. The narrative isn’t. 

The pressure from clients is now explicit. A 2025 ACC/Everlaw survey of 657 in-house legal professionals across 30 countries found that 64% expect AI to reduce their reliance on outside counsel, and 61% plan to push for changes in pricing and the delivery of legal services.  Meanwhile, a Litera Spring 2026 survey found that 85% of law firm clients are already driving AI investment decisions, yet a third of them say they cannot confidently demonstrate value to their most important clients. 

The differentiation gap is shifting entirely to communication.  

The Impact of a Credible AI Story 

First, it connects AI to client outcomes, such as faster delivery, sharper work product and fewer surprises. The conversation should begin with the client’s experience rather than how the technology works behind the scenes. 

Second, it makes governance a selling point rather than a disclaimer. Firms with documented, practice-specific AI policies can say something their competitors can’t: We’ve thought this through and here’s what it means for your matters. Clients across sectors are now requesting these answers. 

Third, it signals the firm is proactive. Firms that win the next three years will be the ones that can articulate their strategy clearly, whether they’re using the most advanced AI platforms or not.  

If You Are a Client, Ask the Question 

How is your outside counsel using AI on your matters, and what’s their governance approach? 

If you’re a law firm or professional services firm that hasn’t built their AI story yet, 2026 is not the year to wait.  

Rhonda Ulrich is a senior marketing leader and legal industry content strategist who leads Poston Communications’ AI service offering. She brings more than two decades of experience driving brand cohesion, business development impact and revenue growth for Am Law 100 firms and professional services organizations.

Dave Poston is the CEO and general counsel of Poston Communications. A licensed attorney, he has worked as a legal business development, marketing and communications professional for the last 30 years.