Paragon Legal Publishes Report on In-House Legal Efficiency and AI Adoption

November 21, 2025
Paragon Legal released a report based on insights from 150 senior legal leaders, revealing that most in-house legal teams face staffing shortages and are turning to flexible models that include AI pilots and alternative legal service providers to manage workload and costs.

Paragon Legal announced in a press release the publication of its new report, "The Legal Portfolio Solution: Where Efficiency, Tech, Risk, and Talent Connect," developed with Mitratech AdvanceLaw. The report draws on insights from 150 senior legal leaders and examines how in-house legal departments are adapting to regulatory changes, AI adoption, and ongoing talent shortages.

According to the findings, 46% of legal teams remain understaffed while facing regulatory uncertainty and rising outside counsel costs. The report notes that traditional staffing models are proving inadequate, as budget constraints prevent hiring despite the push to bring more work in-house.

To address these challenges, many legal departments are shifting toward a portfolio model that combines permanent staff, flexible lawyers, alternative legal service providers, targeted outside counsel, and focused AI pilots. Thirty-three percent of respondents credited alternative legal service providers with recent successes, and 30% reported redirecting work away from large law firms to more cost-effective options.

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