2025 CLOC State of the Industry Report: 83% of Legal Departments Face Rising Demand and AI Adoption Nearly Doubles

San Jose, CA – February 12, 2025 — CLOC (Corporate Legal Operations Consortium) released its 2025 State of the Industry Report, providing a comprehensive look at the shifting landscape of legal operations. Based on the 2024 Harbor Law Department Survey in Collaboration with CLOC, the report captures data from 186 organizations across 14 countries and more than 15 industries, offering critical benchmarks on legal department structures, technology adoption, AI implementation, and budget allocations.

“Legal operations professionals are at the center of transformation in the legal industry,” said Oyango Snell, Executive Director of CLOC. “This report serves as a valuable resource for our members as they assess their legal functionality and plan for enhanced legal operations for the future.”

Key findings from the report:

• 83% of legal departments expect demand to increase, with 63% identifying workload and resource bandwidth as their top challenge.
• AI adoption has nearly doubled from 2023, with 30% of legal teams already using AI and 54% planning to adopt it within the next two years.
• Many legal departments remain in the “emerging to developing” stage of maturity, balancing strategic priorities with the realities of limited resources.
• Alternative legal service providers (ALSPs) are expanding beyond eDiscovery into contract management and legal staffing solutions.

“It’s clear that orgs are going at different speeds, depending on their level of maturity,” said CLOC President Jenn McCarron. “The State of the Industry Report is exciting because of the insight it brings in helping legal ops teams understand where they are relative to their peers, and build the business case for change.”

Harbor conducted its 21st annual Law Department Survey in collaboration with CLOC, providing the data and analysis underlying the State of the Industry Report. “From increased adoption of AI, to shifting strategies for cost control and outside counsel management, the latest benchmark data offers legal operations leaders with in-depth insights as they make decisions for 2025 and beyond,” said Lauren Chung, practice lead for Harbor’s strategy + transformation practice.

The findings also highlight how many legal departments are still in the early stages of operational maturity, requiring thoughtful investment in technology, staffing, and process improvements. With clear benchmarks, legal ops teams can better chart a path forward and identify where to focus their efforts for long-term success. CLOC’s provides a structured approach to this evaluation, with a digital application in development to further support teams in assessing and advancing their maturity.

can explore the findings in-depth during the State of the Industry Report Webinar on February 24, 2025, at 2:00 PM ET. This session will feature key takeaways, real-world applications, and practical strategies for leveraging the data in legal departments.

To access the full report and register for the webinar, CLOC members can visit cloc.org.

About CLOC

CLOC (Corporate Legal Operations Consortium) leads the way in legal operations transformation. It is a global community committed to excellence, collaboration, and innovation in the business and practice of law. CLOC is a 501(c)(6) member-driven professional association.