How M&A deals and AI are influencing US in-house legal hiring

Shifts in deal activity, developments in artificial intelligence and evolving compensation expectations are influencing how companies hire in the United States. Recent insights from Jon Coles and John Spinosa highlight how legal teams are preparing for 2026, what skills are becoming more sought after and how both employers and candidates can adapt to a fast-moving legal sector. Their observations point to rising demand for specialist legal professionals, greater selectivity from companies and a continued emphasis on value-driven hiring across in-house legal teams. 

M&A activity is rising again, increasing demand for in-house talent

M&A deals remain a major driver of in-house hiring, particularly across corporate, commercial and product-focused legal roles. Reflecting on the most recent GC conference, Jon Coles noted that although “deal volume [was] down,” deal value was trending upward, and the risk-reward considerations behind transactions have become more central to decision-making. He explained that companies are being more selective about the M&A transactions they pursue, focusing on sectors such as “energy, technology, healthcare,” all of which continue to show strong market trends and generate demand for in-house lawyers with transactional experience. 
 
Jon shared that “from January to June, M&A was definitely quiet,” but activity has increased significantly in the second half of the year. This rise in appetite for deals is translating into greater movement across the US legal recruitment market, particularly for lawyers who can support due diligence, risk management and the broader deal process. The requirement for in-house counsel who can work closely with stakeholders and navigate complex M&A transactions is expected to grow further as companies prepare for 2026.

AI is becoming a core consideration in legal hiring

Artificial intelligence is influencing the types of legal roles companies look to fill and how they assess candidates. Jon explained that his team has seen “a number of instructions for product counsel to come on board and drive AI programs for companies,” reflecting a growing need for lawyers who can advise on new technologies, regulatory compliance and the use of AI tools within products and business operations. 
 
He also noted that many legal teams may already have access to helpful AI tools through their IT departments, even before considering external legal tech platforms. Jon highlighted that “there are lots of tools already available to them through their own IT teams,” reminding legal teams that effective legal services can be supported without heavy investment in new systems. 
 
AI is also becoming a direct part of the interview process. John Spinosa described a recent private equity process where candidates were required to participate in a dedicated AI session. He shared that this was the first time his team had seen AI “carved out” as a formal component of an interview. This shift indicates that legal teams, particularly in private equity, financial services and technology, are placing greater emphasis on AI’s impact on legal work and the skill sets needed to support AI adoption.

The US legal hiring market is gaining momentum heading into 2026

Both Jon and John expect 2026 to be a strong year for in-house legal hiring. The second half of 2025 has already shown significant movement. John observed that “July and August were not normal summer months. They felt like September, October,” a period that typically reflects the highest recruitment activity. This momentum is expected to influence hiring needs across both financial services and the commercial sector. 
 
A key factor supporting this outlook is the growing alignment between employers and candidates on compensation. John noted that post-Covid, there was a significant gap between what clients were willing to pay and what candidates expected, but this “has been shrinking and shrinking” and is now “normalizing a bit.” This normalization is creating a more balanced environment for in-house hiring, supported by clearer benchmarks across the market, including data from our US legal salary guide. 
 
Sign-on bonuses are another area where expectations are shifting. Smaller private equity funds continue to use them to attract legal talent, but John anticipates that the need for these incentives will reduce over time. He explained that while “there will be a need for sign on bonuses to attract certain talent,” the trend may lessen as the compensation equilibrium continues to stabilize

Broader impacts across legal teams

These changes are also shaping the wider legal sector as companies reassess how their legal departments operate during periods of higher deal volume. Legal teams involved in M&A transactions are taking a closer look at due diligence requirements, regulatory compliance considerations and how legal services can support the overall deal process. As artificial intelligence becomes more common across business functions, in-house counsel are also evaluating its impact on legal work and how new legal tech tools may fit into their existing workflows. These factors are contributing to broader decision-making across legal teams as they plan for 2026. 
 
These shifts are also influencing how general counsel roles evolve, particularly as leaders look to strengthen their teams in response to increased deal flow and the growing impact of AI.

What this means for legal teams in 2026

• Expect increased competition for lawyers with M&A and product experience, especially in sectors such as energy, technology and healthcare
• Prepare for AI to influence hiring decisions, skill requirements and interview processes across legal teams
• Anticipate continued hiring momentum, with heightened activity across financial services, private equity and commercial industries
• Use salary benchmarks strategically, as employer and candidate expectations become more aligned across the legal sector
• Evaluate the use of sign-on bonuses carefully, particularly for smaller funds or firms seeking specialist talent