Axiom 2027 Budget Report: 80% of GCs Plan to Move Significant Work In-House or to ALSPs Within 24 Months

Axiom's 2027 In-House Legal Budget Report (510 in-house legal leaders and CFOs across six countries, published August 24) found 83% expect legal budgets to increase in 2027 — but compensation costs, rising law firm fees, and unfunded AI mandates are absorbing the increases. Critically, 80% plan to move significant work in-house or to alternative providers within 24 months, and 87% said ALSP cost savings met or exceeded expectations. Ninety-two percent of legal teams were asked to implement AI with no dedicated budget. The combination signals a structural shift that law firm BD teams should model explicitly: the expansion of in-house capability and ALSP engagement is not a temporary budget response, it is a deliberate operating model transformation. Firms that compete only on work scope without demonstrating institutional knowledge, relationship depth, and pricing flexibility will lose share to providers offering predictable, transparent arrangements.