I read an Axiom survey report published on 8 September 2026 (https://www.axiomlaw.com/resources/press-releases/in-house-teams-expect-workload-to-outpace-budget) with several counterintuitive findings. 83% of in-house legal leaders surveyed expect larger legal budgets in 2027, while 55% expect workload growth to outpace budget increases. 92% report that their companies have asked legal teams to adopt AI without providing additional funding. Meanwhile, 59% of in-house legal leaders say outside law firms have already raised fees, presenting AI as a value-added service. My view is that the report highlights a common assumption: AI should reduce legal spending. In practice, however: 1. Any use of AI consumes resources and incurs costs. Tokens are used up quickly, and as usage keeps growing, the allowance can soon run out. A company may therefore end up spending more on legal AI in-house than it would on outside counsel. 2. Lawyers also incur additional costs when using AI. Whether, and how, those costs should ultimately be reflected in the costs borne by clients may need to be discussed. Of course, AI may improve lawyers’ efficiency, but it will also substantially enhance the legal value of the services they provide. Whether lawyers’ fees will necessarily fall rather than rise will be an important question to watch. I will continue to observe, month by month, how AI is changing the legal industry.