Procurement & Spend Benchmarks
CLOC 2026 State of the Industry: outside counsel spend growth expectations drop from 58% to 37%
The CLOC 2026 State of the Industry Report, based on data from 135 law departments with median revenues of $13 billion, shows that only 37% of legal departments expect outside counsel spend increases this year — down sharply from 58% the prior year.
BY ECONOMICS DESK · JUNE 4, 2026 · 1 MIN READ
The CLOC 2026 State of the Industry Report, based on data from 135 law departments with median revenues of $13 billion, shows that only 37% of legal departments expect outside counsel spend increases this year — down sharply from 58% the prior year. Inside legal spend growth expectations also fell, from 65% to 47%. Only 32% expect attorney headcount growth. Regulatory compliance (63% of departments reporting workload increases) and cybersecurity (58%) are driving demand, but the capacity response is shifting from spend to operational efficiency: 85% of departments now have dedicated AI oversight or resources, and 72% identify financial management as a priority. The message for law firm pricing leaders is that rate increases are no longer being absorbed as a matter of course.