US Law Firms 2026 Outside Counsel Rankings: No AI Governance, Talent Transformation

• 75% of clients expect their lawyers to have a basic understanding of AI and its applications.
• 60% of clients cite talent management as a key factor in selecting outside counsel.
• The 2026 Outside Counsel Rankings will prioritize client expectations around talent transformation, AI governance, and regulatory compliance.

Law firms are facing a significant shift in client expectations as companies increasingly demand more value from their outside counsel.

Law firms are facing a significant shift in client expectations as companies increasingly demand more value from their outside counsel. A recent executive research study by Ari Kaplan highlights the growing importance of AI governance in law firms, with 75% of clients expecting their lawyers to have a basic understanding of AI and its applications. This trend is driven by the need for cost savings and efficiency, as well as a desire for more strategic advice from their counsel.

The changing landscape is also marked by a growing focus on talent transformation within law firms. With 60% of clients citing talent management as a key factor in their selection of outside counsel, law firms are under pressure to develop and retain top talent. This includes not only traditional skills like litigation and transactional expertise but also emerging areas such as AI and data analytics.

The regulatory environment is also playing a significant role in shaping the Outside Counsel Rankings. With increasing scrutiny on law firms' compliance with anti-money laundering regulations, firms are under pressure to demonstrate their commitment to ethics and transparency. Additionally, the ongoing debate around AI governance raises important questions about data protection and cybersecurity, which will be critical considerations for law firms in the coming years.

The 2026 Outside Counsel Rankings will take into account these evolving regulatory requirements, as well as client expectations around talent transformation and AI governance.

For lawyers and law firms, understanding the changing landscape of client expectations is crucial for success. As clients increasingly demand more value from their outside counsel, law firms must adapt to meet these evolving needs. This includes developing expertise in emerging areas such as AI governance, talent transformation, and data analytics.

The 2026 Outside Counsel Rankings will provide a critical benchmark for law firms to measure themselves against industry standards. By participating in the survey, law firms can gain valuable insights into client expectations and identify areas for improvement.

Lawyers should watch for the changing client expectations and evolving economics that are driving changes in how law firms operate, and be prepared to advise clients on how these shifts may impact their business.

Source: Original reporting via Above the Law