AI in the Legal Industry: How Will AI Affect Legal Work?

Artificial intelligence (AI) is rapidly reshaping the legal field, influencing how legal professionals conduct research, manage data, and deliver legal services. Once limited to experimental use cases, legal AI technologies are now embedded in everyday work across law firms, corporate legal departments, and courts. These changes reflect a broader shift in AI in the legal industry, as artificial intelligence increasingly reshapes how legal work is performed across the legal profession.

How will AI affect the legal industry? AI is changing the legal industry by automating routine legal tasks, accelerating document review and due diligence, and shifting the practice of law toward higher-value legal work that depends on professional judgment rather than manual effort.

How AI Is Changing the Legal Industry

One of the most striking shifts in technology adoption is unfolding across the legal profession. Unlike previous tools that required heavy promotion and often faced resistance, AI platforms are being embraced organically by attorneys, who see their value firsthand. These tools are intuitive, effective, and impactful, making them indispensable in legal tasks such as eDiscovery, legal research, document review, deposition summaries, and the creation of work products.

Judges, too, are recognizing the value of legal AI. Increasingly, they expect attorneys to demonstrate tech-savviness in court. This means lead attorneys, who traditionally focused on client relationships, must now be comfortable discussing and supervising technology alongside their junior counterparts. Firms that fail to bridge this gap risk losing credibility in litigation.

Takeaway: Firms and legal departments must commit to AI training at all levels to foster proficiency, credibility, and confidence. This is no longer an optional investment but a strategic imperative for maintaining client trust and courtroom competitively.

Large Firms Surge Ahead, Small and Mid-Sized Firms Must Pivot

Economic discussions at the conference highlighted a growing divide within the profession, with Am Law 50 firms significantly outpacing their peers in profit and revenue growth. Their robust knowledge management departments, access to advanced AI tools, and ability to upskill attorneys quickly give them a commanding advantage. For mid-sized and smaller firms, AI represents an opportunity to narrow, or even close, this competitive gap. By using AI tools to save time and improve efficiency, smaller firms can deliver legal services more effectively without expanding headcount.

However, smaller firms often lack the resources and infrastructure to develop in-house training or effectively implement advanced tools. External partnerships and tailored solutions could be the difference between staying competitive or falling further behind.

Challenges to the Billable Hour

Perhaps the most disruptive conversation coming out of LegalWeek 2025 is the potential downfall of the billable hour model. With legal AI drastically reducing the time required for routine tasks, clients are increasingly questioning traditional billing structures. Many firms are already experimenting with flat fees and project-based pricing to meet client demands for transparency and efficiency. Firms unwilling to explore these alternatives risk losing business.

Takeaway: Firms must evaluate whether their current business models align with market trends. More agile pricing strategies that reflect value rather than hours worked will position firms as forward-thinking and client-centric.

Bridging the Skills Gap with Legal AI Training

There is a clear and urgent need for legal professionals to not only use AI responsibly but also understand its nuances. This means learning how to prompt effectively, supervise AI outputs, and operate within ethical boundaries. Training should not be confined to younger attorneys; it needs to be an organization-wide initiative driven by leadership.

Developing AI Readiness Programs, with the possibility of certification credentials, can elevate attorneys, paralegals, and other legal professionals, giving them the tools to thrive in AI-enhanced workflows. External training providers can help fill this gap, especially for firms that lack the internal bandwidth to build robust programs.

The Future of Legal Teams

Beyond technology, LegalWeek shed light on the ongoing talent crisis in the legal profession. Younger attorneys and law students increasingly prioritize flexibility and purpose over grueling hours, while in-house legal teams face stagnant headcounts despite growing regulatory demands. Interim staffing solutions, combined with technology, present a practical way to address these challenges and enable organizations to scale without the long-term commitment of full-time hires.

Strategic Implications for the Legal Industry

Change in the legal industry isn’t coming; it’s already here. AI is driving transformations that touch every aspect of practice, from workflows to economics. Firms that proactively adapt will not only survive but thrive.

To Stay Ahead, Think Strategically About These Key Steps

Invest in AI Training: Equip your team to use AI tools effectively and ethically. This is critical not just for efficiency but also for credibility in an increasingly tech-driven courtroom.
Rethink Pricing Models: Move beyond the billable hour to meet new client expectations of transparency and value-driven services.
Leverage Partnerships: Partner with vendors and external providers to access cutting-edge tools and training without the overhead of building these capabilities internally.
Support Flexibility: Implement hybrid solutions, such as interim staffing or flexible work models, to address shifting talent needs.

Firms that view these challenges as opportunities will set themselves apart in this evolving marketplace. The legal industry’s future is being written now, and AI is at the heart of the story. By positioning yourself as adaptable, innovative, and prepared, you can not only meet but exceed client expectations in this exciting new era.

Since 1995, Brenda Keith has worked in marketing for some of the leading companies in the litigation support industry. From eDiscovery to court reporting to trial support, Brenda’s entire career has been focused on driving scalable, predictable revenue growth in the legal service vertical.

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