Who owns AI risk when nobody fully owns AI governance? 

As AI reshapes how organisations operate, governance, capability and control are not keeping pace. Based on insights from 120+ in-house legal teams, this report reveals where exposure is growing and what legal needs to do next.

Earlier this year, Lexology PRO surveyed more than 120 in-house legal professionals to understand how companies are adopting, governing and managing AI in practice.

The findings reveal a growing gap between AI adoption and organisational readiness. While AI is becoming embedded across the business, many are still developing the governance structures, accountability frameworks and capabilities needed to manage it effectively.

Legal is increasingly involved in AI-related decisions spanning contracts, data protection, compliance, procurement and risk. Yet ownership often remains fragmented, governance maturity is uneven, and many teams are being asked to oversee AI without the resources or expertise to do so confidently.

This report examines how in-house legal teams are navigating these challenges, where the biggest risks lie, and what organisations need to do to close the gap between AI adoption and effective governance.

Key findings

75%+ already using AI beyond pilot stage 

72% identify AI and technology literacy as the biggest capability gap

Only 20% say legal is the primary owner of AI governance

Only 14% have fully implemented AI governance frameworks

Only 13% feel prepared for upcoming AI regulation

The real risk is not adoption - it's oversight

Accuracy and trustworthiness emerged as legal teams' biggest AI concern. The challenge is not simply whether AI outputs can be trusted, but whether organisations have the capability to test them, challenge them and recognise when they are wrong.

As AI becomes more embedded in business decision-making, accountability remains firmly with legal and business leaders. Yet many teams acknowledge they are still developing the skills needed to interrogate AI outputs, understand their limitations and oversee their use effectively.

As AI adoption accelerates, the organisations that succeed will be those that close the gap between innovation and oversight.

If you are looking to understand where your organisation may be exposed and how leading legal teams are responding, access the full findings here.

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