Posted by Eric Friedman, former chairman of US law firm Skadden and current board member of Legal Futures Associate Litera [1]
Friedman: Leadership commitment matters
Despite rapid advances in legal technology, the future of law will not be determined by software alone. It will be shaped by leadership decisions.
As artificial intelligence (AI) becomes embedded in legal workflows, firm leaders face a pivotal question: how to harness technology in a way that strengthens profitability while preserving the human judgment that defines exceptional legal counsel.
The narrative that AI will replace lawyers is both incomplete and misleading. Algorithms can process information at unprecedented speed, but they cannot replicate experience, context, or strategic insight.
Lawyers provide nuanced advice that helps clients navigate ambiguity, competing priorities, and real-world consequences. That human element remains indispensable.
What is changing is how legal work gets done. Tasks that once absorbed hours of associate and partner time, such as document review, redlining and precedent-based drafting, are increasingly supported by AI-powered tools.
This shift is not about reducing the value of legal professionals. It is about elevating it. By removing routine work from daily practice, lawyers are free to focus on strategy, judgment and client relationships, where they deliver the greatest impact.
Leadership, not technology, will define the next era of legal practice
The firms pulling ahead recognise that AI is not a tactical upgrade but a strategic lever that reshapes how legal work is delivered, valued and sustained over time.
For decades, law firm leadership has balanced client service with internal administration. That balance is shifting.
Managing partners, firm chairs, and chief executives are increasingly expected to operate as business leaders, focused on long-term growth, differentiation, and resilience.
In this environment, leadership is less about overseeing processes and precedents, and more about deciding where human judgement creates the greatest value and how technology can amplify it.
This evolution does not diminish the role of the lawyer. It strengthens it. Firms that deliberately separate strategic legal work from operational overhead give their professionals the space to focus on what clients value most: trusted advice, foresight, and sound judgment in moments of uncertainty.
From administrative burden to strategic focus
One of the most significant changes underway in leading firms is a reassessment of how lawyer time is spent.
Partner hours consumed by administrative tasks represent one of the most expensive inefficiencies in modern legal practice. Increasingly, those responsibilities are being shifted to dedicated operations teams and supported by AI-powered systems that manage workflows, reporting and routine documentation.
This reallocation of effort is not about disengagement. It is about protecting scarce resources. When lawyers are freed from minutiae, they can concentrate on strategic thinking, client engagement, and complex problem-solving.
Operational excellence becomes a foundation for growth rather than a distraction from it.
Firms that treat efficiency as a strategic discipline, rather than a cost-cutting exercise, are better positioned to respond quickly to client needs and compete effectively in a crowded market.
The result is a practice that operates with clarity, focus and agility.
Preserving institutional knowledge in a changing profession
As the legal industry undergoes generational change, firms face a quieter but equally pressing challenge: the transfer of institutional knowledge.
Decades of accumulated experience, client insight and contextual understanding risk being lost as senior partners retire or transition away from active practice.
Leading firms are addressing this challenge deliberately. Rather than relying solely on informal mentoring, they are exploring systematic ways to capture, organise and share expertise across the organisation.
AI-enabled tools can support this effort by surfacing relevant precedents, organising historical insight and making institutional knowledge accessible at critical moments.
The objective is not to automate judgement but to ensure it endures. Firms that succeed in preserving and distributing expertise will maintain continuity, train future leaders more effectively and deliver consistent value to clients over time.
The profitability paradox and the endurance of the billable hour
Despite decades of predictions about its demise, the billable hour remains resilient. Record profitability across many firms reflects its continued alignment with client expectations and firm economics.
Yet AI introduces a new tension. As technology accelerates routine work, it compresses the time traditionally billed for certain tasks, placing pressure on established revenue models.
This paradox creates a strategic inflection point. Efficiency alone is no longer enough. Firms must reinvest the gains created by AI into deliberate, data-informed growth strategies. Winning more work, strengthening relationships and expanding client engagement have become essential to sustaining profitability.
Rather than signaling the end of traditional pricing models, AI highlights the importance of strategic focus. Firms that view profitability as an outcome of leadership and direction, rather than hours logged, are better positioned to thrive in a changing market.
Using AI and data to move from reactive to proactive practice
The most compelling opportunity presented by AI is not automation, but anticipation. By analysing market trends, legal developments and client activity, firms can identify emerging needs before they surface explicitly.
This proactive approach transforms client relationships. Instead of responding to issues after they arise, firms can engage earlier, offering insight around prevention, preparedness and strategic positioning. Predictive signals help prioritise outreach, tailor advice and allocate resources more effectively.
Clients increasingly value this foresight. Being first to identify a risk or opportunity deepens trust and reinforces the firm’s role as a strategic partner.
When integrated thoughtfully, AI enhances decision-making while preserving the human judgement that defines high-value legal counsel.
A leadership mandate for the years ahead
As AI continues to reshape legal services, the defining factor will not be access to technology, but the ability to operationalise it effectively.
Leadership commitment matters. Adoption, cultural alignment and strategic intent determine whether innovation delivers advantage or remains under-utilised.
The firms pulling ahead are those that encourage experimentation, reward progress and align strategy with the realities of an increasingly competitive market. They recognise that success depends on proactive intelligence, data-informed decisions and operational discipline.
The question facing firm leaders is no longer whether transformation is necessary. It is how quickly insight can be translated into action, and how decisively firms can position themselves for sustained profitability in the years ahead.