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AI disengage. That’ s why leading executive search firms are becoming the bridge between AI and the legal professionals they connect with client companies.
Structural shifts
In the past two years, we’ ve seen a drop in hiring for junior in-house roles. Human oversight still matters at every level, but many tasks that used to land with paralegals are now automated.
Wordsmith, a legal intelligence company, argues that AI is helping“ augment” the work of paralegals rather than replace them. Still, the fact remains that fewer in-house paralegals are needed overall.
This shift has changed team structures, with fewer junior in-house jobs but steady demand for senior counsel and legal leaders. AI can’ t and won’ t replace senior legal judgment.
AI in job specs
Lawyers, like most professionals, are using AI more often, but most companies hiring for legal teams aren’ t specifically asking for AI skills, at least not yet. Still, the landscape is shifting, and AI expertise is becoming more important by the quarter. If you can show experience with AI tools or thrive in tech-driven environments, you’ ll stand out to employers. Adaptability and the ability to work in an AI-powered business are only becoming more valuable.
In fact, lawyers who make AI skills a core part of their job might benefit from the so-called“ AI wage premium.” According to PwC’ s AI Jobs Barometer, US lawyers could see up to 49 % higher pay by leveraging these abilities.
AI shaping where the jobs are
AI is driving demand for in-house legal talent in specific sectors. As regulations keep evolving, especially those tied to AI, demand for attorneys in these areas grows, too. In finance and M & A, for example, companies want regulatory counsel with highly specific expertise.
Beyond the changing ethical, regulatory, and compliance issues of AI, the tech itself needs solid infrastructure. Companies need to buy land for new data centers, and energy providers must meet soaring power demands. BloombergNEF reports that data centers now drive most of the growth in US power demand, with electricity usage up more than 400 % in a decade and 150 % in five years. This surge in infrastructure and energy needs is fueling demand for in-house lawyers who can navigate complex regulatory and commercial environments.
Highly specialized in-house counsel are essential to move AI forward in these complex sectors. Recent client mandates reflect this need. Companies are searching for legal experts with experience in unique growth scenarios, such as those involving hyperscalers.
AI is shaping demand for legal expertise, especially in energy, data centers, real estate, and infrastructure. These are all busy markets right now.
Final considerations
AI is already shaping where in-house legal expertise is needed and is making a big difference in the hiring process. Legal professionals can boost their chances of landing the next role by showing tech skills and a positive approach to AI, but they should also expect a human-led hiring journey. Legal recruiters should be careful not to lean too heavily on AI, or they risk losing the trust of top in-house legal talent. ■
Jack Hayes www. hpexec. com
Jack Hayes is CEO / Founder of H & P Executive Search. The legal sector specialists connect market-leading firms worldwide with exceptional talent to unlock growth potential and prosperity. modern-counsel. com 25