Law Firms Are Spending Hundreds of Millions on AI. What Does That Mean for Jobs?

By Jon Howard

AI is influencing hiring decisions in parts of the legal sector. In recent months, we’ve seen that Baker McKenzie has proposed changes to business services roles as part of a broader review that cited AI-driven efficiencies, while Kirkland & Ellis has reportedly earmarked $500 million to develop proprietary AI technology. Both announcements reflect a wider shift taking place across professional services, where the debate is moving from whether AI will affect how work is done to how quickly organizations can adapt.

Much of the work performed by junior lawyers and support teams involves research, document review, due diligence and drafting, tasks that recent advances in generative AI are able to assist with. This does not mean lawyers are being replaced. Nor is there yet compelling evidence that AI is causing widespread job losses. However, there are growing signs that technology is beginning to influence hiring patterns, organizational structures and investment priorities.

Early Signs of Change

Baker McKenzie’s recent restructuring proposals attracted attention because the firm explicitly linked part of its review to the use of AI and new ways of working. The roles affected were concentrated within business services functions rather than among fee earners.

Historically, technological change has tended to affect routine and process-driven work before reaching more specialized professional roles. Administrative support, knowledge management and operational functions often provide the earliest indications of how new technologies may reshape employment.

At the same time, Baker McKenzie continues to invest heavily in AI. The firm recently expanded the rollout of legal AI tools across its global practice groups and increased training programs designed to help lawyers incorporate the technology into their daily work.

A Different Kind of Investment

Kirkland & Ellis’s reported decision to commit $500 million to AI reflects a different aspect of the trend.

Rather than relying exclusively on third-party software, the firm is developing proprietary technology built around its own workflows and expertise. The scale of the investment suggests that leading firms view AI not as an incremental productivity tool but as a core component of future service delivery.

That shift has broader implications for the profession. Competition between firms may depend not only on legal expertise but also on the ability to deploy technology effectively, manage data and integrate AI into client work.

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To discuss the current recruitment market or your hiring requirements, please contact Jon Howard at jon.howard@wearebuchanan.com