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For In-House Counsel

Jordan Weinstein · Head of Data & Growth
May 2026 · PERSUIT Market Report

What the data is actually saying
about buying legal services

A look across thousands of PERSUIT requests from 2020 – May 2026 · with industry-level drill-downs

The questions every GC is asking right now — Are my legal fees going up or down? Is AI making my outside counsel cheaper? Am I using the right firms? — all have answers in the data. Here is what thousands of competitive sourcing events over five years actually shows, told from the buyer's chair — with industry-level drill-downs on the questions that vary most by sector.

86.7%
Fixed/Capped share · 2026 YTD
Up from 72.4% in 2020.
7.5×
Growth in requests sent per year
Competitive sourcing is now the norm, not the exception.
3.4
Firms competing per request
Average across 2025 — real competition, not relationship sourcing.
65%+
Of $500K–$5M matters: 3+ bidders
Where the spend matters most, competition shows up across the mid-market.

The four-line summary

01Context — the competitive sourcing market grew 7.5× in five years

Requests sent per year (2026 includes annualized forecast)

Why this matters for the numbers that follow

PERSUIT volume grew 7.5× in five years. The 2026 run rate suggests continued acceleration.

This is a proxy for how many in-house legal teams have moved to structured, competitive procurement for outside counsel work. Every data point that follows is drawn from that population of decisions. If you haven't reviewed how you're sourcing legal services recently, you're increasingly in the minority of your peers.

Who is buying

Financial & insurance services is the largest client industry and grew 40× since 2020. Consumer goods & retail (12×), Infotech (21×), and Construction & manufacturing (18×) have all scaled dramatically.

DRILLVolume trajectory by client industry

Same 2020 → 2026 annual series as above, scoped to a single industry. Click a tab to switch.

Annual requests · Financial & Insurance · 2026 forecast extrapolates YTD pace
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02What your peers are buying — and how the mix is shifting

Top gainers (2020–24 → 2025-YTD, share change)

  • +3.04 ppBanking & Financial Services Compliance
  • +1.42 ppSecurities & Corporate Finance Advisory
  • +0.83 ppSimple Contract Breach
  • +0.76 ppComplex Strategic Commercial Negotiations
  • +0.49 ppInternational Arbitration

Top decliners

  • −2.98 ppGeneral Legal Advice
  • −1.13 ppBanking & Finance Disputes
  • −0.66 ppConsumer Protection
  • −0.63 ppConsumer Class Actions
  • −0.56 ppeDiscovery & Legal Data Services
Top matter types — share of recent requests vs. baseline

What this signals

In-house legal teams are unbundling. General "Legal Advice" retainer-style mandates lost almost 3 percentage points of share. Specific, named compliance and advisory work took that share back. Buyers are scoping work more precisely and sourcing it more selectively — a more sophisticated procurement posture that plays directly into competitive pricing.

Across specific industries: Infotech legal departments are rotating hard toward M&A (+7.2pp) and away from real estate (-6.2pp). Energy clients are litigating more — four dispute categories gained share simultaneously. Financial services compliance is the dominant growth category platform-wide.

DRILLTop matter-type gainers & decliners — by client industry

Percentage-point share change between 2020–24 baseline and 2025-YTD, top movers per industry. Click a tab to switch.

Matter-type share change · Financial & Insurance
Gainers (positive pp change) Decliners (negative pp change)
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03Fee model — fixed fees are now the norm. You did this.

Request-level dominant fee model — share by year

86.7% fixed or capped in 2026

Share of requests priced fixed or capped: 72.4% (2020) → 86.7% (2026 YTD). This wasn't law firms waking up to the merits of predictable pricing — it was buyers refusing to accept open-ended budgets. Hourly billing went from 6.4% of requests in 2020 to 2.1% in 2025.

Advisory work is the biggest shift

Advisory/Compliance Fixed/Capped share: 81.1% → 90.6% (+9.5pp). M&A Transactional: 75.9% → 85.6% (+9.7pp). Even work that historically hid behind "scope uncertainty" — M&A advisory — is now priced fixed upfront in 86% of cases.

The practical implication

If your outside counsel relationships still involve routine hourly billing for advisory or compliance work, you're paying a premium that the smarter end of the market has already moved away from. The data says your peers are successfully demanding fixed fees. The standard is set.

If your firm is quoting hourly for compliance or advisory matters, you're not out of market — you're a year or two behind it.

DRILLFee model mix by client industry

Same stacked share-by-year view, scoped to a single industry. Useful for spotting which sectors led — or lagged — the shift to fixed fees.

Fee model share by year · Financial & Insurance
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04Is AI lowering your legal fees? Depends entirely on what you're buying.

The AI-deflation story is partly true. Where it is true, it's concentrated in specific categories. Where it isn't, prices are holding or rising. The nuance matters more than the slogan.

Median request value (USD) by matter type — selected, 2022–2026 YTD

Real declines — where to use your leverage

  • Securities & Corporate Finance Advisory: $135k → $32k (2024-26). ~75% drop. Negotiate hard here.
  • Government Investigations & Enforcement: $500k → $134k. ~73% drop.
  • Single Plaintiff Employment Litigation: $232k → $173k. ~25% drop from peak.

Stable or rising — different story

  • Private Acquisitions (M&A): $189k → $395k median. Doubled. More big deals, not cheaper ones.
  • Banking & Financial Services Compliance: ~$60-70k, steady. Volume up, price stable.
  • Complex Commercial Negotiations: stable mid five-figures.

Some of the above is simply due to platform and client maturation, not necessarily AI deflation.

DRILLWhere compression is real — within-bucket medians

The compression that survives the size test

When you hold matter size constant (comparing like to like), real compression concentrates in small-to-medium advisory, compliance, and securities work — maybe the categories most amenable to AI-assisted document review and analysis:

  • Securities & Corp. Finance Advisory, Small: $38k → $20k (↓47%)
  • Government Investigations, Medium: $234k → $150k (↓36%)
  • Banking & Finance Disputes, Small: $41k → $27k (↓34%)
  • Banking Compliance, Medium: $215k → $167k (↓22%)
  • Commercial Litigation, XL: $2.08M → $1.56M (↓25%)

Where you shouldn't expect the AI discount

  • Private Acquisitions: medians flat to up across every size bucket
  • Single Plaintiff Employment: stable across size buckets
  • Government Investigations, Small: $22.6k → $37.6k (↑66%)

Bottom line for in-house teams: If you're spending on small-to-medium advisory, compliance, or securities work, market pricing has moved materially. If you're in M&A or complex bespoke litigation, you're not going to find a deflationary market. Adjust your negotiating posture accordingly.

Within-bucket median change — selected matter types
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05Panel strategy — your biggest matters may be going to the wrong firms

The fastest-growing segment: mega-matters

$5M+ matters grew from 1.4% to 7.9% of all requests between 2020 and 2025 — a nearly 6× share gain. In telecom, 32% of all requests are now $5M+. The biggest work is being put to competitive pitch at scale.

Who wins those mega-matters?

This is the counterintuitive finding: firms outside the Global 200 won 77% of $5M+ matters in 2025 — up from 72% in 2020-24. The Global elite cohorts combined for 23% of mega-matter wins.

Share of $5M+ (XXL) wins by firm Global ranking cohort

Three reasons this happens

  • Specialist expertise: Patent boutiques, eDiscovery vendors, regional restructuring practices, and sector-focused litigation specialists sit outside the Global 200 and often have deeper subject-matter capability than generalist global firms.
  • Competitive procurement works: PERSUIT's model surfaces firms buyers wouldn't find through relationship networks alone. The data shows buyers find specialist value outside their traditional panels.
  • Numbers math: There are 10 firms in the Global 1-10 cohort and ~9,000 in the Unranked category. Per-firm win rates still favor the elite — but in absolute terms, the long tail dominates.

Panel review signal: If your preferred supplier list stops at recognizable global brand names, you may be systematically excluding the firms winning most of the platform's highest-value work. At minimum, this is worth a structured look.

DRILLWho wins your mega-matters — by client industry

Share of accepted $5M+ proposals by firm Global ranking cohort, 2020–24 baseline vs. 2025-YTD. Click a tab to switch.

$5M+ wins by firm Global cohort · Financial & Insurance
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06Competitive intensity — competition shows up where it countsNEW DATA

The average PERSUIT request attracts 3.4 firms, and across $500K–$5M matters — the bulk of in-house outside-counsel spend — about two-thirds of requests receive three or more proposals. The platform's most contested category, eDiscovery, averages 4.5 firms per request.

3.4
Avg firms per request · 2025
Real competition, every matter type. eDiscovery averages 4.5.
64%
Of $500K–$1M matters: 3+ bidders
The competitive sweet spot — and it sets the pricing floor for the rest of your spend.
66%
Of $1M–$5M matters: 3+ bidders
The biggest concentration of multi-bidder requests sits in the segment that drives the most spend.
51%
Of $5M+ matters: 3+ bidders
More than half of mega-matters now draw a genuinely contested field — a meaningful shift from relationship-only sourcing.
Bidder competition by matter size — 2025 YTD (% of requests with 1, 2, or 3+ bidders)

The competitive backbone: $100K–$5M matters

Across Medium, Large, and XL matters, 62–66% of requests receive three or more proposals. This is the meaningful middle of the market, and it's behaving like a genuinely competitive one — multiple firms, tight pricing, real choice.

Mega-matters: more than half now contested

$5M+ matters now draw three or more bidders on 51% of requests. Five years ago, mega-matters were almost universally relationship-sourced; on PERSUIT, more than half are now competing for attention from a deep firm pool. The platform has converted "phone the trusted partner" into "evaluate three serious options" — and that share keeps rising.

Small matters: lower stakes, lighter touch

On requests under $100K, 54% still attract three or more bidders — a strong number for matter sizes that historically wouldn't have gone to RFP at all. The small-matter segment is the entry point for in-house teams expanding competitive sourcing to lower-value work.

eDiscovery: the benchmark for a working market

eDiscovery and Legal Data Services consistently attracts the most bidders — 4.5 average with 84–86% firm response rate. The category is commoditized enough that firms know they have to compete on price, and buyers know to invite multiple vendors. It's the template every other category is converging toward.

If you're running structured competitive RFPs, the data says you'll get a contested field on the matters that matter most. The market is wide, the firms are ready, and your peers are using that depth — three or more proposals on roughly two-thirds of $500K–$5M work.

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07What in-house leaders should take from this

01

Fixed fees are now expected — use that

86.7% of the market operates on fixed or capped fees. If your outside counsel relationships still involve routine hourly billing for advisory or compliance work, you're paying a premium the market has moved past. The leverage is real; the data confirms it.

02

Negotiate harder on advisory — AI is compressing it

Real within-bucket compression concentrates in small-to-medium advisory, compliance, securities, and government investigations work. These are the most AI-automatable categories. Expect push-back, and expect to win. Don't expect the same leverage in M&A or complex bespoke litigation.

03

Review your panel — especially for big work

77% of $5M+ matters go to firms outside the Global 200. If your preferred supplier list is limited to recognizable global brand names, you're systematically missing the firms winning most of the platform's highest-value work. A structured panel review with broader firm criteria would pay for itself.

04

Mega-matters are now genuinely contested

More than half of $5M+ requests now draw three or more bidders, and 66% of $1M–$5M matters do the same. The deep firm pool that delivers this competition includes specialists and mid-market firms most in-house teams wouldn't surface through relationship networks. If your biggest matters still go to one or two firms, you're leaving real optionality on the table.

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See what your numbers look like

The benchmarks above came from real legal departments running structured competitive sourcing on PERSUIT. If you'd like to see how your own outside-counsel spend compares — or what running an RFP through PERSUIT looks like in practice — we'd be happy to walk you through it.

A note on the data

All figures are drawn from 16,656 competitive requests run on PERSUIT between January 2020 and May 2026. Matter values are in US dollars, converted at publish-date FX. 2026 numbers reflect five months of data and are flagged as YTD or annualized throughout. Firm rankings use the global firm pool, with everything outside the Global 200 grouped as "Unranked." Industry drill-downs cover the buyer's primary industry; a small share of requests aren't industry-tagged and are excluded from those tabs only. Median values exclude a small number of outliers above $50M to keep them representative.