Legal Pros See AI as Job Creator, Not Threat, per Ironclad Report
Ironclad’s 2026 report finds legal pros increasingly view AI as a job generator.
Why it matters: This counters common fears about AI replacing legal roles and highlights changing attitudes crucial for legal tech adoption and workforce planning.
- Ironclad’s 2026 State of AI in Legal report shows growing optimism about AI’s role in legal jobs.
- Profits per lawyer in Am Law 100 firms rose 53.7% since 2019 amid increased tech investment.
- Generative AI use in professional services has nearly doubled to 40% with frequent, growing adoption.
- In-house legal teams report time savings and faster response to business needs due to AI.
- 52% of legal professionals saw revenue increases of 6%–20%, some directly from AI adoption.
Legal professionals are increasingly optimistic about the impact of artificial intelligence on job creation within the legal sector, according to Ironclad’s 2026 State of AI in Legal report.
This optimism contrasts with earlier concerns that AI would displace legal jobs. Instead, AI adoption is linked to operational efficiencies and growth. For instance, profits per lawyer at Am Law 100 firms have risen 53.7% since 2019, alongside nearly 10% growth in technology investments, reflecting a firm-wide embrace of AI tools.
The rise of generative AI in professional services is notable, with usage almost doubling from 22% to 40% in the past year. More than 80% of AI users engage with it weekly, and over 90% expect AI to become central to workflows within five years (2026 AI Report).
Within in-house legal teams, 52% are actively using or evaluating AI for contract review, with usage rates nearly quadrupling since 2024. These teams report significant benefits: 79% say AI reduces time on routine tasks, and 67% say it speeds up responses to business needs (2026 State of AI for In-House Legal).
Legal professionals have also experienced tangible gains; 62% report time savings of 6%–20% weekly from AI, while 52% have seen revenue increases in the 6%–20% range, including 32% attributing an 11%–20% revenue lift directly to AI adoption (Wolters Kluwer analysis).
While some concern persists regarding AI automating entry-level legal work and its impact on talent pipelines (Axios report), these new findings highlight an evolving legal workforce that increasingly embraces AI as a complementary tool that can generate new roles and efficiencies.
“Law firms are facing a fundamental shift in the legal industry's economic landscape,” said Raghu Ramanathan, President of Legal Professionals at Thomson Reuters, noting the pivotal moment for law firms to transform how they operate and serve clients (Thomson Reuters).
By the numbers:
- 53.7% — increase in profits per lawyer in Am Law 100 firms since 2019
- 40% — generative AI use in professional services in 2026, nearly double 2025
- 79% — in-house legal teams reporting time savings on routine tasks due to AI
Yes, but: Despite growing optimism, risks remain around AI automating entry-level tasks and impacting legal talent development long term.
What's next: Legal firms will likely expand AI investment and integration while balancing talent planning for evolving job roles.