AI is changing how lawyers work — and putting the billable hour under pressure (www.cnbc.com)

AI is significantly transforming the legal profession, particularly by challenging the traditional billable hour model that many law firms rely on. According to Clio's U.K. & Ireland Legal Insights Report 2026, nearly 90% of legal professionals in these regions now utilize AI, resulting in firms reporting increased productivity without expanding their workforce. AI tools, like those developed by Harvey, allow lawyers to quickly review documents and conduct regulatory analysis that would have previously taken hours, prompting a re-evaluation of how lawyers spend their time and set fees for their work. Nearly 20% of firms that have widely adopted AI are struggling to meet billable-hour targets, indicating a significant shift in how legal work may be valued. This evolution not only affects billing structures but also alters the educational landscape for upcoming lawyers. As repetitive tasks become automated, law firms must find new ways to ensure that junior professionals develop essential skills, as experiential learning opportunities diminish. Expert insights suggest that the ability to critically analyze AI-generated outputs will become increasingly vital, with judgment and strategic thinking gaining prominence over rote knowledge. As firms strive to adapt to these changes, they may create new roles focused on legal engineering and AI integration, highlighting a future where effective problem-solving across disciplines becomes paramount in the legal industry.