New benchmarking data shows leaner resourcing on Litigation and M&A matters as AI and efficiency pressures reshape legal service delivery.
NEW YORK, NY — Brightflag, the AI-powered enterprise legal management (ELM) platform, announced the release of its 2026 Outside Counsel Benchmarking Report, revealing a shift in how legal work is staffed: the size of outside counsel teams working on matters is decreasing in practice areas most impacted by AI and efficiency demands.
Drawing on billions of dollars in analyzed legal spend data, the report highlights a clear trend toward leaner resourcing models, particularly on Litigation and Mergers & Acquisitions matters.
This shift reflects a broader transformation in legal service delivery, as in-house teams push for greater efficiency and law firms increasingly adopt AI-powered tools to streamline work.
“Legal teams are under pressure to deliver maximum value from their outside counsel relationships,” said Kevin Cohn, Chief Customer Officer at Brightflag. “What we’re seeing in this year’s data is a meaningful shift in how work gets done: leaner teams, tighter oversight, and growing influence from AI in how legal services are delivered.”
Report Highlights:
Outside counsel teams are getting smaller in key areas
The average number of fee earners working on a matter declined in both Litigation (from 4 fee earners to 3) and M&A (from 8 fee earners to 6), signaling a move toward more efficient staffing models. Advances in AI, particularly in document review, due diligence, and legal research, may be contributing to a reduced workload for certain tasks.
Legal spend remains highly concentrated among top firms
On average, 64.4% of external legal spend is allocated to a company’s top 10 firms, reinforcing the importance of strategic firm management and negotiation leverage.
Budgeting is becoming more scalable with AI
Legal teams now set budgets on 55.5% of matters on average, with AI making it easier to analyze historical data and standardize budgeting practices across more work.
New billing behaviors emerging alongside AI adoption
The report identifies a rise in very short time entries (0.1 hours or less) billed by firms, often related to fee earners sending quick email updates. This may be linked to law firms leveraging new AI tools that automatically record all work performed. While individually small, these entries can accumulate into meaningful costs and are prompting increased scrutiny from in-house teams.
Persistent billing inefficiencies remain
Common issues such as excessive internal communications, unapproved research, and overstaffed meetings continue to impact legal spend, highlighting ongoing opportunities for cost control and improved billing discipline.
Empowering In-House Teams with Data
The report is designed to help General Counsel and legal operations leaders benchmark their approach to outside counsel management and identify practical opportunities to improve efficiency, cost control, and outcomes.
From staffing models to billing practices, Brightflag continues to equip legal teams with the data and insights needed to make more strategic decisions about how legal work is delivered.
Download the report here.
About Brightflag
Brightflag’s AI-powered enterprise legal management (ELM) platform provides complete visibility into legal work and spend. It makes in-house teams more productive by eliminating time-consuming invoicing, reporting, and matter management work, and provides the insights legal leaders need to effectively deliver legal advice to the business.
The company serves a global community of legal professionals from offices in New York, Ireland, and Australia.
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