Key points:
- Corporate boards are intensifying demands for measurable returns on AI investments.
- Legal and technology teams face increased scrutiny over AI governance and performance.
- Organizations are shifting focus from AI experimentation to practical, accountable implementation.
In 2026, corporate boards are intensifying demands for measurable returns on artificial intelligence (AI) investments, placing significant pressure on legal and technology teams to deliver tangible outcomes. A recent survey of 600 chief information officers (CIOs) revealed that 98% have experienced increased board scrutiny regarding AI return on investment (ROI) since 2024. Notably, 74% of these CIOs believe their positions could be at risk within two years if their organizations fail to demonstrate measurable AI gains.
legal.io
This heightened focus on AI ROI is prompting organizations to reassess their AI strategies, moving from open-ended experimentation to practical, accountable implementation. A study by Emergn indicates that 34% of AI projects are taking longer than anticipated, with 57% of organizations acknowledging that their expectations for AI are outpacing their ability to deliver.
itpro.com
Legal teams are particularly affected by this shift. They are now expected to validate AI investments from a risk and compliance perspective, ensuring that AI tools not only function effectively but also produce defensible, measurable outcomes. The challenge is compounded by the prevalence of "shadow AI," where employees develop AI tools without formal oversight, leading to potential governance risks. In fact, 82% of CIOs admit that employees are creating AI applications faster than IT can govern them.
legal.io
To address these challenges, organizations are emphasizing the need for robust AI governance frameworks. The British Legal Technology Forum 2026 highlighted that firms are shifting their focus from individual AI features to achieving widespread AI use through strategic governance and security measures.
legaltechnology.com
Moreover, the legal industry is witnessing a surge in AI investments, with firms increasing their spending on technology and knowledge management by nearly 11% and 10% in 2025, respectively. This surge is driven by the race to adopt advanced AI solutions, particularly generative AI, which promises to transform legal work. However, success hinges on disciplined investment and transparency, ensuring that AI tools provide clear, measurable value to clients.
thomsonreuters.com
In summary, as boards demand concrete returns on AI investments, legal and technology teams must navigate the complexities of AI governance, integration, and performance measurement. The focus is shifting from experimentation to execution, with an emphasis on aligning AI initiatives with strategic business objectives and demonstrating clear value to stakeholders.