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Gartner Says In-House Legal Tech Budgets Could Double by 2028

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12

Why it matters

Gartner projects that in-house legal technology budgets will double by 2028, driven by corporate law departments' adoption of AI tools designed to automate routine legal work and improve operational efficiency. The forecast extends Gartner's earlier prediction that legal tech spending would reach approximately 12% of in-house budgets by 2025, up from 3.9% in 2020 and 2.6% in 2017. The shift reflects a sustained trend toward automation as corporate legal teams face pressure to handle expanding workloads without proportional increases in headcount.

The specific products driving this reallocation remain largely undefined in available forecasts. Gartner identifies specialized legal AI platforms targeting workflow management and routine legal operations as the primary category, but the forecast does not detail which vendors or technologies will capture market share or how the spending will distribute across different legal functions.

For in-house counsel, the projection signals a fundamental reordering of legal department budgets over the next four years. Attorneys should expect pressure to evaluate and adopt AI-enabled tools now, as the technology moves from pilot programs into standard operating budgets. The doubling forecast also suggests that law firms and legal service providers will face competitive pressure to integrate AI capabilities or risk losing work to in-house automation. Budget holders should begin assessing which routine legal tasks are most amenable to automation and which vendors offer genuine productivity gains versus incremental improvements.

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