AI is profoundly reshaping the legal industry, driving law firms to develop their own AI tools rather than relying on off-the-shelf solutions. This trend is evident in firms like Singapore's Allen & Gledhill, which created A&GEL in 2024 because suitable systems for its practice groups were unavailable. Some firms, such as Rajah & Tann, are taking this a step further by licensing their internally developed AI tools to clients through subscription-based services, combining access to digital legal vaults with hourly rates for human lawyers. Ashurst is also rethinking its business model, placing AI at the core of service delivery and building processes and people around it.
The AI boom is also creating alternative career paths for lawyers, who are increasingly drawn to legal tech startups. These startups, like Harvey and Legora, have attracted lawyers to develop technology, advise on strategy, and bridge the gap between AI and legal practice. Harvey, founded in 2022, reached an $11 billion valuation, while Legora, which hired lawyers including Fortescue-Webb, was valued at $5.5 billion in March 2026. These roles offer potential for rapid career and earnings advancement, with industry salaries sometimes exceeding $300,000 annually, plus equity stakes and bonuses.
New hybrid law firms are emerging, specifically designed to integrate AI-powered legal services. These structures, often consisting of a law firm and an affiliated legal tech company, aim to fundamentally redesign legal advice delivery. Examples include Covenant, founded in 2021, which provides users with both lawyers and AI software tools like an NDA mark-up tool, and Norm Law, which collaborates with regulatory AI agent developer Norm Ai. While a similar model failed with Atrium in 2017 despite raising $75.5 million, current AI-native hybrid law firms believe they are better positioned for success, with technology being central and human lawyers providing governance and judgment.
