We are experimenting with a shorter format for more frequent blog posts. Let us know what you think. Here are our top 10 predictions for AI use by law firms in 2026:
Matter Management
- Model capabilities will keep improving steadily, unlocking new powerful workflows, including slide generation, bespoke training, matter management, and large-scale document and contract review. Firms that can quickly turn these new capabilities into enhanced services for clients will gain market share.
- Law firms will struggle with complex data retention choices for chat histories, custom workflows, and AI project artifacts. For joint client-firm AI projects, disputes will arise as to who owns the data and the workflows, as well as any model customization, especially in circumstances when clients want to switch firms.
- Off-the-shelf AI-powered legal research will decrease in quality as the Internet increasingly fills with low-quality AI-generated content and with legal marketing materials that are disguised to look like legal thought leadership. This will give rise to bespoke subject-specific AI research tools with access to non-public high-quality legal datasets.
- Client restrictions on their law firms’ use of AI with client data will become a major, time-consuming point of friction between law firms and their clients.
- Corporate legal departments will accelerate bringing routine legal work in-house and sending their AI-generated drafts to law firms to review. This will create confusion as to what is the appropriate amount of review by a law firm of legal work generated by clients using AI, and when the reviewing law firm is responsible for the accuracy, completeness, and fitness-for-purpose of the final work product.
Talent Management
- Firms’ AI capabilities and fluency will become an important factor in recruiting junior lawyers, lateral partners, and professional staff.
- Firms will start treating custom GPTs, AI agents, and customized AI workflows like employees who must be supervised, and implement HR-style evaluations, supervision, and ongoing monitoring.
Client Development
- A small group of law firms will start showing significant, durable value from their use of AI.
- Clients will increasingly expect substantial AI use and will demand corresponding reductions in time spent and fees for routine legal tasks, leading to more fixed fee and subscription-based billing arrangements.
- Proof of responsible AI use by law firms, including policies, training, governance, and ongoing monitoring will become a competitive differentiator for clients when choosing among law firms for major assignments.
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The cover art for this blog was generated by Gemini 3 (Nano Banana Pro).
