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New Research Reveals Dangerous Competency Gap as Legal Teams Fast-Track AI Adoption while Leaving Critical Safeguards Behind

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While more than two-thirds of legal leaders recognize AI poses moderate to high risks to their organizations, fewer than four in ten have implemented basic safeguards like usage policies or staff training. Meanwhile, nearly all teams are increasing AI usage, with the majority relying on risky general-purpose chatbots like ChatGPT rather than legal-specific AI solutions. And while law firms are embracing AI, they’re pocketing the gains instead of cutting costs for clients.

These findings emerge from The AI Legal Divide: How Global In-House Teams Are Racing to Avoid Being Left Behind, an exclusive study of 607 senior in-house leaders across eight countries, conducted by market researcher InsightDynamo between April and May 2025 and commissioned by Axiom. The study also reveals that U.S. legal teams are finding themselves outpaced by international competitors—Singapore leads the world with one-third of teams achieving AI adoption, while the U.S. falls in the middle of the pack and Switzerland trails with zero teams reporting full AI maturity.

Among the most striking findings:

  • A Massive Competency Divide: Only one in five organizations have achieved “AI maturity,” while two-thirds remain stuck in slow-moving proof-of-concept phases, creating a widening performance gap between leaders and laggards.
  • Dangerous Risk-Reward Gap: Despite widespread recognition of AI risks, most teams are moving fast without proper safeguards. More than half have implemented basic protections like usage policies or staff training.
  • Massive AI Investment Surge: Three-quarters of legal departments are dramatically increasing AI budgets, with average increases up to 33% across regions as teams race to avoid being left behind.
  • Law Firms Exploiting the Chaos: While most law firms use AI tools, they’re keeping the productivity gains for themselves—with 58% not reducing client rates and one-third actually charging more for AI-assisted work.
  • Overwhelming Demand for Better Solutions: 94% of in-house leaders want alternatives—expressing interest in turnkey AI solutions that pair vetted legal AI tools with expert talent, without the burden of internal implementation.

“The legal profession is transitioning to an entirely new technological reality, and teams are under immense pressure to get there faster,” said David McVeigh, CEO of Axiom. “What’s troubling is that most in-house teams are going it alone—they’re not AI experts, they’re mostly using risky general-purpose chatbots, and their law firms are capitalizing on AI without sharing the benefits. This creates both opportunity and urgency for legal departments to find better alternatives.”

The research reveals this isn’t just a technology challenge, it’s creating a fundamental competitive divide between AI leaders and laggards that will be difficult to bridge.

“Legal leaders face a catch-22,” said C.J. Saretto, Chief Technology Officer at Axiom. “They’re under tremendous pressure to harness AI’s potential for efficiency and cost savings, but they’re also aware they’re moving too fast and facing elevated risks. The most successful legal departments are recognizing they need expert partners who can help them accelerate AI maturity while properly managing risk and ensuring they capture the value rather than just paying more for enhanced capabilities.”

Axiom’s full AI maturity study is available at https://www.axiomlaw.com/resources/articles/2025-legal-ai-report. For more information or to talk to an Axiom representative, visit https://www.axiomlaw.com. For more information about Axiom, please visit our website, hear from our experts on the Inside Axiom blog, network with us on LinkedIn, and subscribe to our YouTube channel.

Related Axiom News

About InsightDynamo

InsightDynamo is a high-touch, full-service, flexible market research and business consulting firm that delivers custom intelligence programs tailored to your industry, culture, and one-of-a-kind challenges. Learn more (literally) at https://insightdynamo.com.

About Axiom

Axiom invented the alternative legal services industry 25 years ago and now serves more than 3,500 legal departments globally, including 75% of the Fortune 100, who place their trust in Axiom, with 95% client satisfaction. Axiom gives small, mid-market, and enterprise clients a single trusted provider who can deliver a full spectrum of legal solutions and services across more than a dozen practice areas and all major industries at rates up to 50% less than national law firms. To learn how Axiom can help your legal departments do more for less, visit axiomlaw.com.

SOURCE Axiom Global Inc.



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Wiley partners with Claude creator Anthropic, responsibly integrating AI across scholarly research — EdTech Innovation Hub

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Wiley says it is adopting the Model Context Protocol, an open standard created by Anthropic which aims to provide seamless integration between authoritative, peer-reviewed content and AI tools across platforms.

Starting with a pilot project, and subject to definitive agreement, the partnership will see Wiley and Anthropic working together to ensure university partners have streamlined, enhanced access to Wiley content.

The partnership will also establish standards for integrating AI tools into scientific journal content, while providing appropriate context for users, including attributions and citations.

“The future of research lies in ensuring that high-quality, peer-reviewed content remains central to AI-powered discovery,” explans Josh Jarrett, Senior Vice President of AI Growth at Wiley. 

“Through this partnership, Wiley is not only setting the standard for how academic publishers integrate trusted scientific content with AI platforms but is also creating a scalable solution that other institutions and publishers can adopt. By adopting MCP, we’re demonstrating our commitment to interoperability and helping to ensure authoritative, peer-reviewed research will be discoverable in an increasingly AI-driven landscape.”

“We’re excited to partner with Wiley to explore how AI can accelerate and enhance access to scientific research,” adds Lauren Collett, who leads Higher Education partnerships at Anthropic. 

“This collaboration demonstrates our commitment to building AI that amplifies human thinking—enabling students to access peer-reviewed content with Claude, enhancing learning and discovery while maintaining proper citation standards and academic integrity.”

The news comes shortly after Anthropic announced the launch of Claude for Education, a version of its chatbot tailored to meet the needs of higher education institutions.

RTIH AI in Retail Awards

Our sister title, RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers’ businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work – resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Wednesday, 3rd September.



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Humanoid robot says not aiming to ‘replace human artists’

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When successful artist Ai-Da unveiled a new portrait of King Charles this week, the humanoid robot described what inspired the layered and complex piece, and insisted it had no plans to “replace” humans.

The ultra-realistic robot, one of the most advanced in the world, is designed to resemble a human woman with an expressive, life-like face, large hazel eyes and brown hair cut in a bob.

The arms though are unmistakably robotic, with exposed metal, and can be swapped out depending on the art form it is practicing.

Late last year, Ai-Da’s portrait of English mathematician Alan Turing became the first artwork by a humanoid robot to be sold at auction, fetching over $1 million.

But as Ai-Da unveiled its latest creation — an oil painting entitled “Algorithm King”, conceived using artificial intelligence — the humanoid insisted the work’s importance could not be measured in money.

“The value of my artwork is to serve as a catalyst for discussions that explore ethical dimensions to new technologies,” the robot told AFP at Britain’s diplomatic mission in Geneva, where the new portrait of King Charles will be housed.

The idea, Ai-Da insisted in a slow, deliberate cadence, was to “foster critical thinking and encourage responsible innovation for more equitable and sustainable futures”.

– ‘Unique and creative’ –

Speaking on the sidelines of the United Nations’ AI for Good summit, Ai-Da, who has done sketches, paintings and sculptures, detailed the methods and inspiration behind the work.

“When creating my art, I use a variety of AI algorithms,” the robot said.

“I start with a basic idea or concept that I want to explore, and I think about the purpose of the art. What will it say?”

The humanoid pointed out that “King Charles has used his platform to raise awareness on environmental conservation and interfaith dialog. I have aimed this portrait to celebrate” that, it said, adding that “I hope King Charles will be appreciative of my efforts”.

Aidan Meller, a specialist in modern and contemporary art, led the team that created Ai-Da in 2019 with artificial intelligence specialists at the universities of Oxford and Birmingham.

He told AFP that he had conceived the humanoid robot — named after the world’s first computer programmer Ada Lovelace — as an ethical arts project, and not “to replace the painters”.

Ai-Da agreed.

There is “no doubt that AI is changing our world, (including) the art world and forms of human creative expression”, the robot acknowledged.

But “I do not believe AI or my artwork will replace human artists”.

Instead, Ai-Da said, the aim was “to inspire viewers to think about how we use AI positively, while remaining conscious of its risks and limitations”.

Asked if a painting made by a machine could really be considered art, the robot insisted that “my artwork is unique and creative”.

“Whether humans decide it is art is an important and interesting point of conversation.”

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TSU and the AIRI Institute have opened an artificial intelligence laboratory in chemistry and molecular engineering | News

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The laboratory will develop and implement AI methods for creating new materials and medicines based on the analysis of chemical, biological and medical data.

It was opened at the Engineering Chemical Technology Center (ECTC). The new division will use AI to develop new medicines and simulate the properties of chemical compounds. For example, scientists will create methods for predicting the physico-chemical properties of chemical compounds and algorithms for analyzing quantum patterns in atomic and molecular physics, including macroscopic quantum effects. They will conduct research in the field of chemoinformatics (chemical informatics, molecular informatics), bioinformatics at the levels of DNA, cells and tissues, and develop digital assistants and intelligent decision support systems for chemical technologies.

Artur Kadurin, head of the AI in Life Sciences Research Group at the AIRI Institute and scientific director of the new laboratory, noted during the event that modern life sciences and materials science generate unprecedented amounts of data. The laboratory’s task is to develop and apply AI methods to analyze and combine this heterogeneous information at the intersection of chemistry, biology, and physics.

“Accelerating the development of therapeutic drugs and functional materials depends on our ability to predict the complex properties of substances and their interactions. We will focus on creating computational approaches that will make it possible to effectively use the potential of artificial intelligence technologies to solve these problems. In turn, experts from TSU will provide the experimental validation of the proposed methods,” said Artur Kadurin.

According to Vyacheslav Goiko, director of the TSU Institute for Big Data Analysis and Artificial Intelligence, the introduction of AI into the work of chemical scientists and molecular engineering specialists is a fundamental change in the very logic of scientific research.

“The future belongs to those who learn how to use AI to accelerate scientific research and generate new knowledge. And this future is being created here in Tomsk today. These are colleagues from the AI Institute, recognized leaders in the field of fundamental and applied AI research. Our team has extensive experience in conducting research and applied developments based on the Cyberia supercomputer. ECTC provides expertise in synthesis and analysis of substances and in scaling of chemical processes,” said Vyacheslav Goiko.
Unique ECTC plants will be used for the projects of the new laboratory. For example, the center’s scientists are currently developing Russia’s first AI system for actual production in low-tonnage chemicals.

“The main goal is to accelerate the production cycle, eliminate the human factor to increase the accuracy and safety of the process, which, in this case, is the production of sodium tartrate. AI helps predict changes in parameters and clearly analyze the consequences of changes, which is important in the continuous process of developing a substance,” said Aleksey Knyazev, Director of the ECTC, Acting Dean of the Department of Chemistry at TSU.



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