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AI adoption strains billable hour model at UK law firms

10/10/2026

Artificial intelligence is now used by almost 90% of legal professionals in the U.K. and Ireland, creating friction with the profession's reliance on the billable hour.

& Ireland Legal Insights Report 2026 indicates that among firms using AI, nearly 80% report handling more work without adding resources, while over 70% say costs have fallen as AI absorbs administrative tasks previously performed by support staff.

This shift is forcing firms to reassess how lawyers spend time and how services are priced.

A&O Shearman has partnered with legal AI company Harvey to build agents for tasks such as reviewing loan agreements and analyzing regulatory filings.

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