Appendix C · Firms vs. departments

Appendix C: comparison
law firms vs. legal departments

This section consolidates the systematic comparison between the study's two populations: law firms (n=72) and in-house legal departments (n=39). Both answered equivalent items adapted to their context. The test is Mann-Whitney U, with effect size r = Z/√N (|r| > 0.3 medium, > 0.5 large; Cohen, 1988).

Main finding

Of the 27 pairs of Likert items compared, only 5 show a significant difference (p < 0.05). This means that the two populations are more similar than different in their perceptions of legal technology, AI and ethical practices. The differences that do exist are concentrated in client experience and ethical practices.

Summary of the 27 Likert pairs

ItemMean, firmsMean, depts.prSig.
Limited access to technology hinders digitalization 3.36 3.15 0.5646 0.054 —
Infrastructure supports digital legal services 3.34 3.60 0.2186 0.119 —
Systems ensure traceability of decisions 3.27 3.10 0.5348 0.059 —
Compatibility problems slow down digital transformation 2.73 3.23 0.0561 0.185 —
It is difficult to procure legal software 2.64 3.10 0.0928 0.158 —
Human connection remains more important than technology 4.16 3.97 0.5152 0.058 —
Human oversight of AI work must be a core competency 4.65 4.26 0.0061 0.221 ✱
Resistance to change is the main obstacle 3.54 3.64 0.5839 0.051 —
Technology has increased efficiency 3.96 4.11 0.3646 0.084 —
Automation has reduced costs 3.35 3.62 0.2904 0.105 —
Automation lets us devote more time to high-value work 3.88 3.97 0.6255 0.046 —
Required bringing in non-legal professionals 3.15 3.19 0.9582 0.005 —
Clients / internal clients respond faster 2.92 3.50 0.0127 0.247 ✱
Expectativas cliente 3.65 4.10 0.0206 0.209 ✱
Perceived satisfaction 3.43 3.77 0.1288 0.138 —
Transparencia 3.78 3.97 0.2613 0.101 —
Preference for digital interactions 2.64 3.23 0.0076 0.242 ✱
Consistency in quality 3.65 3.85 0.5542 0.052 —
AI enables offering new services 3.21 3.18 0.9429 0.008 —
AI enables offering more accurate services 3.75 3.82 0.9875 0.002 —
Time spent on routine tasks has decreased 3.92 3.61 0.2329 0.126 —
AI tools have improved the capacity to handle cases 3.60 3.54 0.9297 0.010 —
Sufficient understanding of how to implement AI 3.40 3.29 0.7081 0.041 —
We assess ethical risks before implementing AI 3.87 2.86 0.0040 0.307 ✱
We apply confidentiality protocols when using AI 3.83 3.50 0.4033 0.089 —
We consult codes of conduct when using AI 3.23 3.11 0.6974 0.042 —
We document the ethical impact of using AI 3.13 2.46 0.0522 0.211 —

Only 5 of 27 items show a statistically significant difference (α = 0.05). The convergence on 22 of 27 items suggests that perceptions of legal technology cut across organization type: law firms and legal departments face similar challenges and share common professional views.

Analysis by thematic section

Technological infrastructure

Infrastructure, law firms vs. legal departments
Law firmsLegal departments
Limited access to technology hinders digitalizationp = 0.5646
3.36
3.15
Infrastructure supports digital legal servicesp = 0.2186
3.34
3.60
Systems ensure traceability of decisionsp = 0.5348
3.27
3.10
Compatibility problems slow down digital transformationp = 0.0561
2.73
3.23
It is difficult to procure legal softwarep = 0.0928
2.64
3.10

The dotted line marks the neutral point (3 = neither agree nor disagree).

No infrastructure item shows a significant difference. Both populations perceive similar levels of access, traceability and compatibility problems. This suggests that infrastructure challenges are structural to the Mexican legal sector, not tied to organization type.

Professional adaptation and competencies

Professional adaptation, law firms vs. legal departments
Law firmsLegal departments
Human connection remains more important than technologyp = 0.5152
4.16
3.97
Human oversight of AI work must be a core competencyp = 0.0061 · significant
4.65
4.26
Resistance to change is the main obstaclep = 0.5839
3.54
3.64

The dotted line marks the neutral point (3 = neither agree nor disagree).

The only significant item is human oversight of AI work (Firms: 4.65 vs. Depts.: 4.26, p=0.006, r=0.22). Law firms value this competency more, possibly because their business model depends directly on the quality of the legal work delivered to the client. The other two items (centrality of human connections and resistance to change) are consensus findings.

Operational efficiency

Operational efficiency, law firms vs. legal departments
Law firmsLegal departments
Technology has increased efficiencyp = 0.3646
3.96
4.11
Automation has reduced costsp = 0.2904
3.35
3.62
Automation lets us devote more time to high-value workp = 0.6255
3.88
3.97
Required bringing in non-legal professionalsp = 0.9582
3.15
3.19
Clients / internal clients respond fasterp = 0.0127 · significant
2.92
3.50

The dotted line marks the neutral point (3 = neither agree nor disagree).

The significant item is speed of communication with clients (Firms: 2.92 vs. Depts.: 3.50, p=0.013, r=0.25). Legal departments perceive greater improvement in communication, possibly because their "internal clients" respond within the same organization, facilitating the adoption of digital channels.

Client experience

Client experience, law firms vs. legal departments
Law firmsLegal departments
Expectativas clientep = 0.0206 · significant
3.65
4.10
Perceived satisfactionp = 0.1288
3.43
3.77
Transparenciap = 0.2613
3.78
3.97
Preference for digital interactionsp = 0.0076 · significant
2.64
3.23
Consistency in qualityp = 0.5542
3.65
3.85

The dotted line marks the neutral point (3 = neither agree nor disagree).

Two significant items:

  • Client expectations aligned with technology (Firms: 3.65 vs. Depts.: 4.10, p=0.021, r=0.21): legal departments perceive that their internal clients have technology expectations that are more aligned.
  • Preference for digital interactions (Firms: 2.64 vs. Depts.: 3.23, p=0.008, r=0.24): the internal clients of legal departments prefer digital more than the external clients of law firms.

Both findings are coherent: internal clients (employees of the same company) tend to be more digitalized than the external clients of law firms, which include individuals and SMEs with lower technology adoption.

Impact of AI on legal services

Impact of AI, law firms vs. legal departments
Law firmsLegal departments
AI enables offering new servicesp = 0.9429
3.21
3.18
AI enables offering more accurate servicesp = 0.9875
3.75
3.82
Time spent on routine tasks has decreasedp = 0.2329
3.92
3.61
AI tools have improved the capacity to handle casesp = 0.9297
3.60
3.54
Sufficient understanding of how to implement AIp = 0.7081
3.40
3.29

The dotted line marks the neutral point (3 = neither agree nor disagree).

No item shows a significant difference. The perception of the impact of AI on legal services is notably uniform between law firms and legal departments: both see similar benefits in accuracy, reduction of routine tasks and case-handling capacity. This suggests that the impact of AI does not depend on organization type, but on the maturity of its implementation.

Ethical practices

Ethical practices, law firms vs. legal departments
Law firmsLegal departments
We assess ethical risks before implementing AIp = 0.0040 · significant
3.87
2.86
We apply confidentiality protocols when using AIp = 0.4033
3.83
3.50
We consult codes of conduct when using AIp = 0.6974
3.23
3.11
We document the ethical impact of using AIp = 0.0522
3.13
2.46

The dotted line marks the neutral point (3 = half of the time).

The most relevant finding of the entire firms-vs.-departments comparison: law firms assess ethical risks before implementing AI more frequently than legal departments (Firms: 3.87 vs. Depts.: 2.86, p=0.004, r=0.31, medium effect). This is the highest effect size of the 27 pairs compared.

The most likely explanation: law firms bear direct responsibility to the client for the quality and ethics of their work. An ethical error can generate professional liability and direct reputational harm. Legal departments, working within a corporation, can partly delegate this responsibility to the organizational structure.

Scalar variables

Scalar variables, law firms vs. legal departments
Law firmsLegal departments
KPI maturityp = 0.4267
2.72
2.54
% Documentos digitalizadosp = 0.2769
2.85
2.64
Knowledge levelp = 0.1025
2.96
2.62

No scalar variable (KPI maturity, % digitalized documents, level of knowledge) shows a significant difference. Both populations start from similar levels of organizational maturity, which reinforces the conclusion that the differences found in the Likert items reflect specific dynamics of the client relationship, not structural differences.

AI adoption

AI implementation rate, law firms vs. legal departments (χ², p=0.820)
Law firms
73.6%
Legal departments
69.4%

The AI implementation rate is statistically indistinguishable between populations (χ² = 0.052, p = 0.820). Both law firms (73.6%) and legal departments (69.4%) report high levels of AI adoption, which suggests that this trend is sectoral, not conditioned by the type of legal organization.

Synthesis of findings

The 5 items with a significant difference (p < 0.05):

ItemMean, firmsMean, depts.prHigher mean
Human oversight of AI work must be a core competency 4.65 4.26 0.0061 0.221 Law firms
Clients / internal clients respond faster 2.92 3.50 0.0127 0.247 Legal departments
Expectativas cliente 3.65 4.10 0.0206 0.209 Legal departments
Preference for digital interactions 2.64 3.23 0.0076 0.242 Legal departments
We assess ethical risks before implementing AI 3.87 2.86 0.0040 0.307 Law firms
DimensionPattern
InfrastructureNo differences, shared challenges
Professional adaptationGeneral consensus. Law firms value human oversight of AI more
EfficiencyLegal departments perceive greater improvement in digital communication
Client experienceLegal departments: internal clients more digitalized and with higher technology expectations
Impact of AIFull convergence, perceived impact does not depend on organization type
Ethical practicesLargest difference: law firms assess ethical risks more frequently (r=0.31)

The narrative that emerges is clear: the differences are concentrated in the client relationship, not in the technology itself. Law firms, with direct responsibility toward external clients, develop greater ethical awareness. Legal departments, with internal clients that are more digitalized, perceive greater technological alignment.

How to cite

Prince Tritto, P., Villa Berger, P., Salmon, L., Muñoz Ponce, M., & Limón González, J. B. (2026). Technology Maturity Index for the Legal Industry: pilot study (data from Mexico, 2025). Law and Artificial Intelligence Laboratory, Universidad Panamericana; KermaPartners; Lemontech. https://labderia.up.edu.mx/en/legaltech-report