Artificial intelligence is now utilized by nearly 90% of legal professionals in the U.K. and Ireland, according to Clio's U.K. & Ireland Legal Insights Report 2026. This integration has allowed almost 80% of AI-using firms to manage more work without increasing resources, and over 70% have reduced costs by automating administrative tasks.
The widespread adoption of AI is challenging the legal profession's traditional billable hour model. When AI significantly reduces the time required for tasks like document sifting and drafting, the economic basis for charging by the hour becomes less clear. Nick Rowles-Davies, founder and CEO of Lexolent, noted that it is not feasible to charge many hours for work that AI completes in seconds.
Clio's report indicates that about one in five firms widely adopting AI are experiencing difficulty meeting billable-hour targets. A Deloitte survey projects that the global share of work charged by the hour will decrease from 72% to 44% within the next two to three years. Routine legal work is particularly susceptible to automation by AI.
Despite AI's capabilities, complex legal work still requires human judgment, especially in interpreting AI outputs and formulating client strategies. Lawyers also need to identify and correct AI 'hallucinations,' as there have been instances of lawyers being sanctioned for submitting briefs with non-existent cases generated by AI.
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Almost 90% of legal professionals in the U.K. and Ireland use AI, leading to increased work capacity and reduced administrative costs. This widespread adoption is pressuring the traditional billable hour model, with some firms reporting difficulty meeting targets and a projected global decline in hourly-charged work.