Extract from Benjamin Joyner’s article “Falling Billables and the Rise of ALSPs: The Impact of AI on Law Firms and In-House Teams”
The legal industry’s continued adoption of artificial intelligence is likely to drive down billable hours and push more work toward alternative legal services providers (ALSPs), according to a newly released survey of legal professionals in the U.S., Europe and China.
The 2026 Wolters Kluwer Future Ready Lawyer Survey Report, published Tuesday, found broad agreement among law firm and in-house lawyers that AI was driving substantial efficiency gains, with uncertain long-term implications for the relationship between outside counsel and clients. The report drew on a survey of 810 legal professionals who are employed by law firms and corporate legal departments in the U.S., China, Germany, the Netherlands, the U.K., Belgium, France, Italy, Spain, Poland and Hungary.
Overall, 62% of respondents said they expect AI-driven efficiencies to reduce billable hours, with 67% of in-house respondents expecting a reduction compared to 57% of law firm participants.
