Nearly half of law firms are already winning new work through AI – Legora
New research from 31 leading law firms finds AI has moved from efficiency tool to competitive weapon – reshaping how legal work is won, priced, and delivered
A structural shift is underway in how the world’s leading law firms operate. New research based on tracked operational data from 31 firms using Legora’s platform across 14 markets finds that AI has moved beyond a tool for efficiency. Firms are now using it to win new business, increase revenue, commit to fixed-fee pricing they previously couldn’t offer, and compete on the quality and certainty of their delivery in ways that are beginning to show up in client outcomes.
The study was conducted by legal industry analyst Ari Kaplan, commissioned by collaborative legal AI platform Legora, and provides an operationally grounded picture of legal AI’s commercial impact.
AI becomes the difference in winning business
The research reveals that AI has quickly established itself as a distinct competitive advantage, playing a direct role in growth and business development. 42% of participating firms said that referencing their use of AI has helped them win new work, and 45% report that it has helped them expand existing client relationships.
One driving factor is the increased capacity AI gives firms to take on work they would previously have had to decline. 55% of respondents say AI has enabled them to take on briefs they would previously have struggled to scope and resource – expanding the addressable opportunity without increasing headcount.
Overall, 77% have cited their AI capability when explaining pricing, value, and turnaround time to prospects or clients – a figure that reflects how rapidly AI has shifted from an internal operational tool to a front-facing part of how firms sell themselves.
Certainty and reliability as a competitive advantage
Beyond winning new business, the research points to a deeper commercial shift: AI is removing the unpredictability that has long constrained how law firms price and deliver work, and that reduction in uncertainty is flowing directly through to profitability.
39% of participating firms say AI makes it easier to price and deliver fixed-fee arrangements, with partners reporting greater confidence in committing to prices they would previously have been reluctant to quote. For a profession where hourly billing has historically been the default precisely because delivery timelines are hard to predict, this represents a meaningful change in how firms can position themselves to clients.
A significant part of that confidence comes from what AI catches before it becomes a problem. 71% of participating firms say AI has helped them identify issues within matters they would otherwise have missed. The result shows up on the balance sheet: 52% report a reduction in write-offs, rework, or non-billable effort, and 35% are seeing fewer write-downs due to work taking longer than expected.
Taken together, the findings suggest that the most significant commercial impact of AI in legal practice may not be the hours saved at the front end – but the unpredictability removed throughout.
AI is freeing lawyers to focus on higher-value work – and clients are feeling it
68% of participating firms report a reduction in non-billable hours, and 74% say they can handle more work in the same amount of time. Crucially, that recaptured capacity is being put to productive use: firms are reporting an average of 4.3 non-billable hours saved per lawyer weekly, which can translate to $6.9 million in additional revenue yearly for a team of 100 lawyers. Over half (52%) of firms also reported a redeployment of capacity to client interaction and responsiveness.
The picture that emerges is of a profession moving through two distinct phases of AI adoption. Faster execution of existing work; the productivity gains that first made the case for AI investment – is rapidly becoming a baseline expectation rather than a differentiator. What the data now points to is the phase beyond that: a fundamental shift in how lawyers allocate their time, with hours previously absorbed by lower-value or non-billable work being redirected toward the analytical, strategic, and client-facing work that drives both revenue and relationships.
Commenting on the research, Ari Kaplan said: “What struck me most in conducting this research was how quickly the conversation among firm leaders had shifted. A year ago, the question was whether AI delivered real value. Today, the firms in this study have moved well past that – they’re asking how to use it to change their competitive position, their pricing, and the quality of what they deliver to clients.
Kyle Poe, VP of Legal Innovation at Legora, added: “One of the most persistent mistakes in how people talk about AI in law is defaulting to efficiency and cost savings. At the top of the market, that’s the wrong frame. The firms serving the most demanding clients aren’t looking to do the same work cheaper – they’re looking to deliver higher quality, faster, with greater certainty. That’s where AI is already changing the competitive equation.”
