Shearman & Sterling Pledges $1.1B, 3% Billable Time to AI Development
Shearman & Sterling commits $1.1 billion and 3% billable hours to AI tool development.
Why it matters: This is one of BigLaw’s largest AI investments, signaling a shift toward AI-driven workflows and client service. Its success could influence how firms compete and operate industry-wide.
- $1.1 billion invested over five years in AI strategy at Shearman & Sterling.
- Each practice area allocates at least 3% of billable hours annually to AI tool building.
- AI adoption now factors into performance reviews across legal and business roles.
- ContractMatrix, an AI contract tool, saw client usage increase ninefold in one year.
Shearman & Sterling announced a $1.1 billion investment over five years to develop proprietary AI platforms, dedicating at least 3% of billable lawyer hours annually to AI projects. This deep integration embeds AI development into everyday legal work.
Global Managing Partner Hervé Ekué framed this as a long-term strategic shift, stating, "This significant investment signals where we intend to take the firm over the next decade." David Wakeling, Global Head of AI, emphasized how AI "changes what we can build for clients and how quickly we can do it." Their statements are documented in the firm's announcement here.
Performance evaluations now include AI adoption metrics for associates, partners, and business functions, making AI proficiency a core expectation.
Shearman’s AI-powered contract review tool, ContractMatrix, co-developed with Harvey and Microsoft, saw client adoption rise ninefold in the past year, according to company data here. This reflects growing client demand for AI efficiency.
The firm links these efforts to a reported 15% revenue rise in fixed-fee agreements over two years, attributing part of the growth to AI tools enhancing service delivery.
Industry analysts note Shearman & Sterling’s early and large-scale AI investments mark them as leaders in BigLaw’s AI adoption curve. A recent LegalTech Market Report confirms firms with strong AI strategies show faster workflow improvements and client retention.
This commitment reflects a growing trend as top firms reshape competitive dynamics by embedding AI into legal workflows, not just adding tools externally.
By the numbers:
- $1.1 billion — Shearman & Sterling’s five-year AI investment plan
- 3% — Annual billable hours each practice area dedicates to AI tool development
- 9x — Increase in client uptake of AI contract tool ContractMatrix over one year
- 15% — Growth in Shearman’s fixed-fee income over two years attributed partly to AI
Yes, but: Shearman’s figures are primarily self-reported without independent verification, and broader market impact remains to be seen as AI integration is still evolving.
What's next: Shearman plans to expand AI integration into litigation support and compliance teams in 2025, with further updates expected mid-year.