A&O Shearman presses ahead with billion-dollar legal AI plan
The law firm says it will spend $1.1 billion on AI over five years, mainly through lawyers’ working time.
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International law firm A&O Shearman says it will invest $1.1 billion in artificial intelligence over the next five years. According to the firm, most of that amount consists of at least 3 per cent of the time of every practice being used to build specialised AI tools and services.
The plan is not a straightforward cash investment. A&O Shearman says every practice must spend at least 3 per cent of its time developing tools for its own area of law. The stated time requirement does not in itself make clear how the investment is divided between staff hours, software, infrastructure and external suppliers.
The firm says it does not want to use AI only for general text or search functions, but for legal processes tailored to each practice. Possible applications include contract analysis, document drafting and client support. According to the firm, the approach should combine specialist legal knowledge with the speed and scale of software.
According to the firm, A&O Shearman already uses systems from legaltech company Harvey and developed ContractMatrix together with Harvey and Microsoft. The firm says that in September, 96 per cent of partners and 93 per cent of lawyers used the organisation’s AI tools. Those percentages come from the company itself.
The initiative is part of a broader race among large law firms. Other firms are also investing in their own models, partnerships with AI companies or specialised infrastructure. For the sector, A&O Shearman’s move stands out mainly because the firm links a specific percentage of billable time to AI development.
The business significance depends on who ultimately pays for the investment and who receives the productivity gains. If legal tasks are completed more quickly, firms can handle more work or offer fixed prices. At the same time, the use of AI may create new costs for checking, security, liability and training. The announced $1.1 billion is therefore a corporate promise, not an independently established return.
For Dutch business-services providers, the plan is relevant as a sign that AI development is becoming part of normal business operations. It does not yet mean that legal advice will be fully automated, that staff will become redundant or that clients will receive lower bills. The announced investment and usage percentages do not demonstrate such outcomes.
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Both sides of the figures
▲ Bright spots
- The plan makes AI development part of billable professional capacity and could accelerate specialised services, according to A&O Shearman.
- The approach is in line with broader AI investment in legal services, as described by Global Legal Post.
▼ Concerns
- The $1.1 billion is largely based on working time; the firm has not broken down the cash expenditure.
- There are no independent figures on productivity, error rates or savings for clients.
Critical note
The amount should not be read as $1.1 billion in software purchases. According to the firm, most of it consists of lawyers’ time spent on development; its financial value is a company calculation.
Who notices what
- Businesses
- Business clients may be offered more specialised AI services, but it is not yet known whether this will lead to lower costs.
- Workers
- Lawyers are being given AI development as part of their work, which may mean training and new performance pressure.
- Investors
- A&O Shearman’s plan could prompt other business-services providers to consider their own AI investments.
Every point comes from the article’s sources and was included in the fact check.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The key figures and the 3 per cent requirement can be found in two independent specialist publications. Claims about future productivity, jobs and lower costs were not presented as facts.
- confirmed A&O Shearman says it will spend $1.1 billion on AI over five years. — This is reported by Global Legal Post and Non-Billable. source
- confirmed Every practice must devote at least 3 per cent of its time to AI tools. — Both sources describe this requirement. source
- confirmed In September, 96 per cent of partners and 93 per cent of lawyers used the AI tools. — The figure is attributed as a company claim. source
Editor's note
The scale and structure of the plan have been described by several specialist legal publications on the basis of statements by A&O Shearman. The precise cash expenditure, returns and quality gains have not been independently established.Sources
- A&O Shearman boosts AI programme with '$1.1bn lawyer-led commitment' — The Global Legal Post
- A&O Shearman ramps up AI push with five-year plan it says is worth $1.1bn — Non-Billable