Legal Teams Wary of AI Costs Amid Rising Usage-Based Billing
DISCO's 2026 survey reveals legal teams' concerns about AI usage-based billing costs.
Why it matters: As AI becomes central to legal workflows, understanding cost implications and budgeting for variable fees is crucial for law firms and legal departments.
- 72% of legal professionals in 2026 are confident in AI for document review, up from 53% in 2025.
- Pressure from corporate boards to adopt AI rose from 18% in 2025 to 47% in 2026.
- DISCO uses a flat-rate per-gigabyte pricing model covering multiple AI features, while others like Legora switch to consumption-based pricing.
- Legal teams cite unpredictability in token-based pricing as a major budgeting challenge with AI tools.
A new 2026 survey from DISCO highlights growing confidence in AI technologies among legal professionals, with 72% now trusting AI for document review, up from 53% in 2025.
This surge in adoption is partially driven by increased pressure from corporate boards and C-suite executives, rising dramatically to 47% in 2026 from 18% the previous year.
However, as the use of generative AI expands, legal teams are voicing concerns about the cost structures. DISCO employs a flat-rate per-gigabyte pricing model that covers access to its Active Review, Early Case Assessment (ECA) tools, and AI features, contrasting with vendors like Legora that have shifted to consumption-based billing rather than traditional per-seat fees.
James Park, Director of AI Consulting at DISCO, observes that while the legal industry quickly resolved AI's capabilities, "very little visibility" remains on the economics, making it hard for teams to forecast costs.
Patricija Corey, Legal Operations Manager at Franklin Templeton, highlights, "Token pricing turns AI into a variable cost, and the more successful you are at driving adoption, the more you may spend," emphasizing budgeting unpredictability.
Historically, software expenses in legal departments were relatively fixed annually, but token or consumption-based billing complicates this predictability. Gartner projects that by 2028, over 35% of new legal tech spend in corporate legal departments will be tied to AI consumption, underscoring the need for financial visibility in AI adoption.
Alex Fortescue-Webb, Global Head of Legal Engineering at Legora, explained that per-seat pricing was suitable initially due to simplicity and predictability but is unsuitable long term given the variable nature of AI usage among individual users.
By the numbers:
- 72% — Legal professionals confident in AI for document review in 2026, up from 53% in 2025.
- 47% — Corporate and C-suite pressure on legal teams to adopt AI, up from 18% in 2025.
- 35% — Projected portion of corporate legal tech spend tied to AI consumption by 2028, per Gartner
Yes, but: While consumption-based pricing offers flexibility aligned with actual usage, it introduces budgeting unpredictability, contrasting with the simplicity of traditional per-seat fees.
What's next: Legal teams will need to adapt budgeting and procurement strategies to manage token-based AI costs as adoption grows.