Clients Question Law Firm AI Use as Legal Costs Continue to Rise
Published: 12 Feb 2026
By AITestGuide Staff
Stockholm: Inhouse lawyers are raising serious questions about law firm AI use, saying it has not improved services or reduced costs for clients.
The concerns were shared at a legal industry conference in Stockholm. The event brought together hundreds of senior legal leaders from global companies. Several inhouse lawyers expressed similar views during and after panel discussions.
Clients Report No Real Impact
One senior in-house lawyer said that law firms continue to work as usual. Despite strong claims about AI adoption, clients see no change in pricing or service quality. Legal fees remain high. Routine legal work still costs the same or more. According to the lawyer, law firm AI use has not improved clients’ outcomes.
Rising Fees Add to Frustration
Law firms frequently announce new AI tools. These tools are said to improve speed and efficiency. Clients expected lower costs as a result. However, inhouse lawyers say hourly rates continue to rise. This gap between promise and reality is causing concern.
“This situation cannot continue,” the lawyer said during the discussion.
Direct Talks with Law Firms Likely
The inhouse lawyer suggested that companies may soon need direct conversations with senior law firm leaders.
These talks would focus on:
- Pricing models
- Value delivery
- Expectations from law firm AI use
Several lawyers at the event appeared to agree with this view.
Why Expectations Are Changing
Inhouse legal teams now use AI tools daily. They rely on them for tasks such as:
- Contract review
- Legal research
- Document drafting
- Compliance support
These tools save time and reduce workload. As a result, clients expect similar efficiency from law firms. When law firm AI use does not meet these expectations, dissatisfaction grows.
Clients Adjust Their Legal Strategy
To manage costs, many companies are changing how they buy legal services.
Key steps include:
- Handling more legal work internally using AI
- Hiring ai-focused or alternative law firms for routine tasks
- Sending only complex matters to traditional firms
- Better sorting of legal work before outsourcing
These moves aim to improve efficiency and control spending.
Legal Market Faces a Shift
Legal technology discussions have gone on for years. What is different now is real, large-scale AI use inside companies. Inhouse teams clearly understand what AI can do. This knowledge is reshaping expectations across the legal market.
What Comes Next?
With law firm AI use growing on both sides, pressure on pricing and service models is increasing. Industry observers believe meaningful change could happen soon. The relationship between clients and law firms may be entering a new phase.
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- Stay Relevant
- Stay Positive
- True Feedback
- Encourage Discussion
- Avoid Spamming
- No Fake News
- Don't Copy-Paste
- No Personal Attacks
