First signs of AI's impact on the legal sector

By George Morell

For years we've read reports, articles, and predictions about how artificial intelligence will transform the legal sector. Many remained theoretical or speculative, but in recent months something seems to be changing. The signals are no longer projections.These are real layoffs, mergers and restructurings at the world's leading firms.

Large companies have been experimenting with AI tools for some time. From Allen & Overy with Harvey even Clifford Chance with his own assistant, Clifford Chance AssistIt was launched over a year ago. But testing technology is one thing, and using it as an official justification for reducing staff is quite another.

That is exactly what happened in November 2025. Clifford Chance, one of the Magic Circle firms, informed some 550 business services employees in London that approximately 50 positions will be eliminated and another 35 will have their functions modified. According to the Financial Times, the firm citedor specifically the increased use of artificial intelligenceThis, along with reduced demand for certain services and the outsourcing of work to hubs in Poland and India, means that AI is already mentioned in the official layoff announcement.

What's striking about this case is that the cuts are occurring against a backdrop of financial strength. Clifford Chance's partners earned an average of £2,1 million last year, and the firm posted revenues of £2.400 billion, a 9% increase over the previous year. Therefore, It does not appear that we are facing a restructuring motivated by a crisis.but rather a strategic optimization decision where AI is starting to become a relevant factor.

But it's not all about staff reductions. Mergers are also starting to incorporate AI into their strategic narratives.

Also in November 2025, Perkins Coie and Ashurst They announced their intention to merge to create Ashurst Perkins Coie, a firm with approximately 3.000 lawyers in 52 offices across 23 countries. According to the official statement, both firms have leveraged their strong financial performance to invest in technology and AI, and The combined firm intends to use artificial intelligence to transform the practice of lawTherefore, AI is presented as a central part of the merger discourse.

The phenomenon goes beyond offices and also affects large consulting firms. PwCOne of the Big Four accounting firms, has abandoned its goal of hiring 100.000 people by 2026. Its global chairman, Mohamed Kande, said that when they made those plans the world was very different And now, with artificial intelligence, although they want to hire, they don't know if they'll be looking for the same level of people, but rather a different profile. The firm is actively seeking hundreds of AI engineers and is unable to find them. According to some sources, PwC projects a 32% reduction in hiring entry-level associates by 2028.

Meanwhile, data on AI adoption in the legal sector continues to grow. According to the report de Clio Regarding legal trends in 2025, 79% of legal professionals already use AI tools.

However, adoption at the firm level is much slower: there is a gap between individual use and corporate strategy. According to the report Thomson Reuters Future of ProfessionalsOrganizations without a clear AI strategy risk falling behind in three years, which could put almost a third of firms at risk.

And then there's the elephant in the room: Microsoft's in-house lawyers. fired in the summer This year, it laid off 32 lawyers and 5 paralegals from its Washington headquarters as part of a 15.000-employee reduction. Although the company did not directly attribute the layoffs to AI, Some analysts speculate that the adoption of automation toolshas not influencedIf the legal dismissal ratio had been applied globally, hundreds of legal positions could have been affected.

Whaté What conclusions can we draw from all this? The signs are no longer theoretical. They are real, quantifiable, and affect top-tier companies, which logically will be the first to show signs of the real impact of AI.

Of course, It would be simplistic to attribute all these movements exclusively to artificial intelligence.Mergers have multiple motivations, layoffs also respond to economic cycles, and there's the outsourcing of services or post-merger restructuring. But what's relevant is that AI is now part of the official discourse and is neither hidden nor minimized. It's presented as a legitimate and strategic factor.

For lawyers, this has clear implications. It is not enough to have a superficial understanding of technologyWe need to understand how to use it, what its limitations are (remember the hallucinations that do not stop) and how it can be integrated into workflows without replacing professional judgment.

Ultimately, 2025 It marks a turning point by giving us the first tangible signs of the real impact of AI in the legal sector. And it seems that it's no longer a matter of predictions, but of facts.