Bloomberg Law Report Finds AI Disclosure Gaps and Rising Data Center Legal Demand

Bloomberg Law announced in a press release its first State of Practice report for 2026, highlighting how legal professionals are adapting to challenges shaped by artificial intelligence, geopolitical shifts, and growing data center demand. The report surveyed 760 practitioners from law firms and corporate legal departments.

The findings show that while AI use among attorneys is now common, four in ten respondents from law firms said their firms do not disclose AI use on client bills. Geopolitical instability continues to disrupt transactional work, with half of respondents from large firms reporting that deals have been paused due to risk, and one quarter noting that clients have exited deals entirely.

Demand for legal services related to data centers is also increasing. About one third of respondents from mid sized firms said their firms have established cross functional teams focused on data center matters, with similar efforts expanding among larger firms. The report also examines how attorneys are responding to federal government actions, trade shifts, and the operational effects of emerging technologies.