US Law Firms Add Jobs Amid Rapid Rise in AI Adoption

AI adoption by US law firms is rising rapidly even as legal hiring and pay continue to grow.

Artificial intelligence is quickly becoming standard in US legal practice. Yet, rather than replacing staff, law firms are hiring more lawyers and raising pay, according to multiple industry analyses.

• Thomson Reuters reports a 9.7% increase in technology investment by law firms, with much of that aimed at AI integration for client service and efficiency gains.
• At the same time, lawyer compensation spending jumped 8.2%. Profits per lawyer at the largest US firms have surged 53.7% since 2019—demonstrating that legal talent remains central as AI tools proliferate.

Usage of AI in legal work is widespread. An industry survey found that 69% of legal professionals in the US are now using AI for tasks from document review to basic research, up from just 31% a year earlier. However, most firms still lack organization-wide training or clear AI policies—potentially exposing gaps in compliance and risk management.

“We’re seeing AI move from novelty to necessity,” said Nicole Black, a legal tech expert. Raghu Ramanathan, CEO of Legal Tech at Thomson Reuters, called this phase “a critical inflection point” for the sector, underscoring the imperative for firms to adapt to shifting client expectations by blending human and digital expertise.

The market for legal AI tools is projected to grow from $2.1 billion in 2025 to $3.9 billion by 2030, reinforcing that technology investment is now fundamental to law firm strategy. Read more in the Thomson Reuters analysis.

Yes, but: Many firms lack formal AI policies and employee training, raising compliance and risk concerns.

What's next: Look for new AI training programs and governance rollouts, as firms address operational exposure revealed by rapid tool adoption.