In today's economy, law firms are grappling with rising operational costs amid ongoing uncertainty. From skyrocketing office expenses to talent shortages, staying competitive requires finding smarter ways to work.
According to the 8am™ 2025 Legal Industry Report, 31% of legal professionals are now using generative AI personally, while firm-wide adoption stands at 21%—a clear sign that technology is reshaping the industry.
The real cost of staying traditional
While some firms are hesitant to adopt AI, often citing concerns about reliability or upfront investment, the choice to stick with traditional methods carries substantial hidden costs.
Here’s what it’s actually costing you:
Higher billable hours on routine tasks: Without automation, lawyers spend excessive time on administrative work, like manual document review or data entry, inflating costs and delaying client service.
Missed revenue opportunities: Slow workflows mean fewer cases handled, limiting growth in a competitive market.
Increased error risks: Manual processes can lead to oversights that result in costly revisions or even malpractice claims.
Competitive disadvantage: While your firm processes cases the traditional way, AI-adopting firms complete work faster and operate with leaner teams.
5 ways AI is driving cost efficiency for law firms
AI offers a tangible solution to rising cost pressures, helping firms trim expenses and accelerate output. Here are five practical ways law firms are using AI today:
1. Automating document review and analysis
Document review used to mean hours of attorney time combing through contracts, medical records, or discovery materials. AI can now analyze thousands of pages in minutes, flagging relevant information and potential issues.
This speed dramatically cuts down on the billable hours required for high-volume cases. Tasks that previously required hours can now be completed in minutes, freeing your team to focus on strategy and client relationships instead of paperwork.
You're not replacing legal judgment—you're eliminating the tedious groundwork that comes before it.
2. Accelerating legal research
Traditional legal research can eat up hours poring over endless case law, statutes, and precedents. AI-powered research tools can now search, analyze, and summarize relevant legal information exponentially faster than traditional methods.
What once took hours of manual searching now takes minutes. Your team gains more precise results with less effort, pulling from vast databases with contextual insights.
This efficiency allows you to either reduce billable hours spent on research or redirect that time toward higher-value work. Either way, your productivity increases and costs go down.
3. Streamlining client intake and communication
First impressions matter, but traditional intake processes often leave potential clients waiting hours or even days for an initial response. AI-powered intake systems can engage prospects 24/7, collect essential information, and even schedule consultations—all without adding staff.
This isn’t about replacing the personal touch; it’s about adding systems that support and streamline the intake process. AI ensures no lead falls through the cracks, speeds onboarding, and provides a smoother experience for clients. A smoother intake process often leads to higher client conversion rates and better satisfaction.
4. Reducing costly errors and revisions
Human error is unavoidable and can be expensive. A missed deadline, an incorrect case citation, or a typo in an agreement can cost you time, money, and credibility. These mistakes often happen when teams are fatigued or rushed. AI tools act as a safety net, catching issues before they become problems.
The financial impact goes far beyond avoiding malpractice claims. Every error that requires revision means duplicated effort, delayed timelines, and frustrated clients. AI’s consistency results in fewer do-overs and faster case resolutions from start to finish.
5. Optimizing administrative workflows
Beyond core legal tasks, AI can support back-office operations. This includes automating repetitive tasks such as categorizing and tagging case files, time tracking, and invoice generation.
By using AI to handle these tasks, your team spends less time on administrative work and more time on activities that actually move cases forward. These approaches show how AI turns everyday inefficiencies into cost-saving opportunities.
The ROI of AI in legal operations
The true advantage of AI lies in its compounding effect—the time saved in one area directly creates capacity to do more in another. You’re not just saving time; you’re building a more productive law firm.
For example, consider some benefits of Law Practice AI, a platform designed to enhance legal workflows:
Enhanced document accuracy: Consistency is crucial when managing large volumes of documents. Built-in checks and anti-hallucination technology minimize risks from small mistakes that might get overlooked—like wrong dates, missed details, or inconsistent formatting—that can lead to costly revisions or client dissatisfaction.
High-volume demand letter production: What used to take hours of drafting, reviewing, and revising can now be completed in minutes. Firms can handle more cases without increasing staff, saving on hiring and overhead costs.
Faster review and case prep turnaround: AI can summarize medical records, analyze contracts, and prepare case chronologies, handling tedious tasks so your team can focus on strategy and client work.
Can AI replace legal professionals?
Let’s address the elephant in the room: No, AI cannot replace attorneys, paralegals, or other legal professionals. And frankly, that's not what it's designed to do.
Even though AI can automate drafting, reviewing, extracting data, and handling repetitive tasks, it fundamentally lacks the critical judgment and nuanced understanding that only humans can provide.
Think of AI as the ultimate legal assistant. It handles time-consuming groundwork, so your team can focus on what truly requires their expertise: building client relationships, developing case strategies, and providing counsel that only legal professionals can offer.
The most successful firms aren't choosing between AI and human expertise. They're combining both to deliver better results and more cost-effective service than either could achieve alone.
Your next step: Quantify the AI advantage
Changes in the economy don't have to mean uncertainty about your firm's future. The practices that thrive are the ones that adapt and aren't waiting for perfect conditions to invest. Instead, they explore AI, test its capabilities, and refine workflows as they go.
The clearest path forward is to start small. Identify the time-consuming tasks in your practice and consider how much time you could reclaim each month by improving or automating them. By redirecting that time toward profit-generating work, you can unlock efficiencies that help your practice thrive in any economic climate.
Ready to start implementing AI in your daily workflows to boost productivity and see efficiency gains? Learn more about the Practice AI and MyCase integration here.
About the author
The Practice AI Team