QuidMetrics

Law firms warn of revenue hit from corporate AI adoption

Corporate clients are increasingly turning to in-house legal teams and artificial intelligence tools rather than external advisers, posing a threat to law firm revenues.

Law firms face growing disruption as corporate clients shift away from using external legal advisers in favour of developing their own in-house capabilities and deploying AI tools. Research from HSBC found that nearly three-quarters of surveyed firms have identified this trend as a significant concern.

The shift reflects broader changes in how companies manage legal services, potentially reshaping the traditional business model that law firms have relied upon.