It all started as a torrid love affair. 

Corporate counsels were captivated. Every promise sounded irresistible: better outcomes, faster answers, lower costs, and smarter legal strategies. 

Then reality arrived: promises had to be proven. 

Corporate counsels aren’t giving up on better outcomes. They’re giving up on the idea AI automatically delivers them. 

12 months ago, 61% of corporate counsel said they loved it when outside law firms used AI to get better outcomes. We asked the same question again just three weeks ago. The number plunged to 21%. 

The pursuit of better outcomes hasn’t changed. The burden of proof has. Corporate counsels haven’t lowered their expectations. They’ve raised them.

BTI research reveals 6 reasons:

1. Better Lawyers Beat Better Technology 

AI can accelerate work. It still can’t replace legal judgment, business insight, negotiation strategy, or advocacy.

2. The Hype Outran Reality 

Clients heard extraordinary promises. Many are still waiting to see extraordinary results. 

3. Trust Took a Hit 

Hallucinations, sanctions, confidentiality concerns, and governance questions reminded clients AI isn’t risk-free.

4. AI Became Table Stakes 

Almost every major law firm now claims sophisticated AI capabilities. Once everyone has it, no one wins because of it alone. 

5. Clients Know AI’s Limits 

Corporate counsel use AI themselves. They understand both its strengths and where it breaks down. 

6. Prove It 

Clients no longer ask, “Do you use AI?” They ask, “How did it improve my outcome?”. 

AI isn’t disappearing. Neither is corporate counsel’s thirst for better outcomes. The only thing disappearing in the last 12 months is the belief AI automatically creates those outcomes. 

AI is no longer the story. Outcomes are. 

The firms pulling away are quietly using AI to solve problems other firms can’t solve, reduce risks others miss, and deliver breakthrough outcomes. That’s when corporate counsel will fall in love with AI all over again – not because it exists, but because it delivers. 

Stephen Mabey has been advising law firms for over 15 years on a wide range of issues, including - strategic action planning, leadership, understudy (succession) planning, compensation (Partner and Associate), organizational/governance structures, partnership arrangements, business development, capitalization of partnerships, partnership agreements, lawyer &staff engagement, marketing, key performance indicators, competitive intelligence, finance, mergers, and practice transitions.

Applied Strategies Inc.'s website contains references from clients describing the value of the services rendered https://www.appliedstrategies.ca/references.php.

Stephen can be reached by email - smabey@appliedstrategies.ca or by phone at 902.499.3895.