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ARTICLE · 15 OCTOBER 2026

Pay For AI By Reshuffling The Budget, Then Ask Permission To Reshuffle

In-house legal departments are being asked to fund AI initiatives by reallocating existing budgets, but new survey data reveals a critical constraint: 86% of legal leaders cannot shift money between budget categories without approval from managers or CFOs. This creates a fundamental tension between the expectation that legal will self-fund AI transformation and the reality that most teams lack the authority to restructure their budgets independently.

United KingdomStrategy

The recent Axiom 2027 In-House Legal Budget Report provided an interesting glimpse into how in-house legal departments are paying for AI. The bottom line: They largely aren't being given the money for it. When the business hands legal an AI initiative, no dedicated budget comes with it a whopping 92% of the time. Instead, teams cover the cost by reshuffling. 75% draw on the existing technology budget, 65% pull from other budget categories, and only 22% ask the CFO for additional funds.

That finding raises a question the report didn’t answer: How easily can legal actually move money between budget lines? We asked, and the answer complicates the “just reallocate” model considerably.

Reallocation usually requires a signature

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