Updated
Updated · Law.com · Jul 13
Law Firms Build Proprietary AI Tools, Split on Sharing With Rivals in 2026
Updated
Updated · Law.com · Jul 13

Law Firms Build Proprietary AI Tools, Split on Sharing With Rivals in 2026

3 articles · Updated · Law.com · Jul 13

Summary

  • Law firms are increasingly developing proprietary AI tools and workflows with technology partners, turning legal AI from off-the-shelf software into firm-specific products.
  • Those projects are now raising a strategic choice: keep the resulting tools exclusive to preserve an edge, or share them more broadly with other firms.
  • The divide reflects competing views of AI as either a differentiating capability that can win clients and efficiency gains, or a platform better scaled through wider adoption.
  • The trend underscores how legal practices, corporate legal departments and legal-tech vendors are becoming more tightly linked as AI moves deeper into core legal work.

Insights

As AI-native firms automate 80% of legal work, can traditional law firms adapt quickly enough to survive?
With AI commoditizing legal tasks, is the billable hour finally obsolete and what will replace it?
When AI can review contracts in minutes, what unique value does a human lawyer actually provide?