How is AI helping large companies reduce their outside legal spend?

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AT&T has pulled thousands of hours of legal work away from outside firms since launching an AI-first in-house legal unit in January, and its general counsel has announced a plan to reduce the company's national firm roster from roughly 30 firms down to 18 to 20 within two years. The unit has about 38 people, and AT&T named OpenAI as a design partner in October. Senior leaders running large legal budgets should build internal AI capacity now and set explicit adoption requirements for the outside firms that remain on their rosters.