How AI is changing lawyers, billable hours and legal careers

Legal firms in the U.K. and Ireland are increasingly adopting AI, which is disrupting the traditional billable-hour business model. As AI automates routine tasks, firms are forced to reconsider how they charge for services and train junior lawyers.
Why it matters
The shift away from billable hours represents a fundamental change in the economics of the legal profession driven by technological efficiency.
Artificial intelligence is now used by almost 90% of legal professionals in the U.K. and Ireland, and it's putting one of the profession's oldest conventions — the billable hour — under the microscope.
That's according to legal software company Clio's U.K. & Ireland Legal Insights Report 2026 . It found that among firms using AI, almost 80% said they can handle more work without increasing resources, while over 70% said it cut costs by absorbing administrative work once done by support staff.
As a result, AI is challenging some of the assumptions on which the legal profession was built, forcing firms to reevaluate how their lawyers spend their time, how they charge for it and how new lawyers learn the ropes.
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