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What Legal AI Is Really Changing in Law Firm Economics

By Kathryn Rattigan on April 30, 2026
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Legal commentary on artificial intelligence in law practice often focuses on speed: drafts that once took days can now be produced in hours, and research that once took hours can now be narrowed in minutes. Those gains are real, but they do not resolve the more important operational questions. Many firms still don’t know whether faster tools are producing better realization or improved profitability. In practice, time saved in drafting often reappears in verification, supervision, and coordination. A draft may be generated quickly, but lawyers still need to test it against matter history, client objectives, procedural posture, and jurisdiction-specific requirements.

The better question is not whether AI speeds up a single task, but whether it improves matter economics overall. Firms often measure adoption through access, query volume, or document counts, yet those metrics do not show business value. More meaningful measures include time to completion, write-offs, staffing efficiency, turnaround time, and client satisfaction. From that perspective, the real constraint may be information architecture rather than drafting speed. When lawyers have to reconstruct context before trusting the AI output, the review becomes the new bottleneck. When financial data, prior work product, client instructions, and workflow are connected, that same output can be reviewed and used much more efficiently.

For law firms, the next step is not simply broader adoption, but disciplined implementation. Firms will need to determine where AI genuinely improves matter economics, build workflows that reduce rather than relocate friction, and establish clear strategies and governance around when and how these tools are used. That governance should address supervision, verification, confidentiality, accountability, and consistency of use across matters. The firms that stand out will likely be those that can show not just faster output, but controlled, measurable, and trusted use of AI in service of better outcomes.

Tags: AI
Photo of Kathryn Rattigan Kathryn Rattigan

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security…

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security compliance. Kathryn helps clients review, revise and implement necessary policies and procedures under the Health Insurance Portability and Accountability Act (HIPAA). She also provides clients with the information needed to effectively and efficiently handle potential and confirmed data breaches while providing insight into federal regulations and requirements for notification and an assessment under state breach notification laws. Prior to joining the firm, Kathryn was an associate at Nixon Peabody. She earned her J.D., cum laude, from Roger Williams University School of Law and her B.A., magna cum laude, from Stonehill College. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.

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  • Posted in:
    Business of Law, Technology and AI
  • Blog:
    Data Privacy + Cybersecurity Insider
  • Organization:
    Robinson & Cole LLP
  • Article: View Original Source

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