How AI is Changing Law Firms

It's no secret AI is a big deal for law firms.

Harvey’s deals with Latham & Watkins and Willkie Farr & Gallagher show that AI isn’t a shiny add-on anymore, it's a minimum requirement and a force reshaping law firm economics.

Today we cover the risks vs opportunities AI presents law firms, and how you can use this to impress in applications and interviews. Enjoy!

What are the Risks for Law Firms?

1) Profit Pressure: Law firms make money by billing hours. The more lawyers working longer hours, the more revenue. But if AI can do a big chunk of routine tasks—like due diligence or contract review—then fewer hours are billed. Some recent studies suggested that if junior lawyers’ hours fell by just 20%, overall revenue could drop by 13% and profits by 7%. That’s a big hit. In short: AI saves clients money, but it squeezes law firm profit margins.