Business · Companies · 1 day ago
AI use in law firms puts the billable hour under pressure
AI tools are helping lawyers review documents and handle other tasks much faster.
That can make it harder for firms to charge clients by the hour as they have in the past.
AI can take over routine work, but lawyers still need to check its output and make decisions for clients.
Firms also need to find new ways for junior lawyers to build skills if AI does tasks they once learned from.
Almost 90% of legal professionals in the U.K. and Ireland use artificial intelligence, according to Clio's 2026 report.
Among firms using AI, almost 80% said it allows them to handle more work without adding resources, and more than 70% said it reduces costs by taking on administrative tasks.
AI tools are putting pressure on the billable hour by speeding up work such as reviewing agreements and analyzing documents.
About one in five firms that have widely adopted AI reported difficulty meeting billable-hour targets.
Legal experts said routine tasks are most exposed to automation, while complex work still needs human judgment and careful checking of AI output.
The adoption of AI may also reduce traditional training tasks for junior lawyers, so firms may need to create other ways for them to develop their skills.
- Who
- Legal professionals and law firms in the U.K. and Ireland
- What
- The use of AI is changing legal work and putting pressure on the billable hour and traditional junior-lawyer training.
- When
- 2026; the report is Clio's U.K. & Ireland Legal Insights Report 2026.
- Where
- The U.K. and Ireland
- Why
- AI can complete some legal and administrative tasks faster and with fewer resources, changing how firms use and charge for lawyers' time.
This story does not have two clearly opposing sides.
You can't charge 16 hours for something that takes 16 seconds
A faster route to a draft does not automatically mean a faster route to competence
The need to develop exceptional lawyers doesn't go away
This story does not have a timeline yet.
- AI use among legal professionals
- Almost 90% in the U.K. and Ireland
- Firms able to handle more work without additional resources
- Almost 80% of firms using AI
- Firms reporting difficulty meeting billable-hour targets
- About one in five firms that widely adopted AI
- Expected share of work charged by the hour
- Senior legal leaders expect it to fall from 72% to 44% over the next two to three years, according to a Deloitte survey
- Firms named as using Harvey AI
- A&O Shearman and Slaughter and May
Sources
Related news
Amazon in talks to buy AI startup Decart for about $7 billion
Apple reportedly cuts iPhone 18 Pro component orders by up to 20%
SpaceX spectrum deal deepens Starlink’s push into U.S. mobile service
Starbucks has explored a possible takeover of Chipotle
Netflix reportedly plans to cut 5% of its workforce
Meta bans ByteDance ads across its platforms in seven countries
Los Angeles Fine-Dining Restaurants Expand Non-Alcoholic Pairings
Isaias Shuts In More Than Two-Thirds of Gulf Oil Production
Bond Traders Look to Inflation Data and Fed Chair for Rate Signals
Apple reportedly cuts iPhone 18 Pro component orders by up to 20%
Nvidia in talks over investment in or acquisition of Reflection AI
