Source: Bloomberg Law
The days of the yellow legal pad are numbered, and law firms know it. What began as tentative experiments with artificial intelligence just two years ago has evolved into a full-scale innovation arms race that industry leaders believe will determine which firms dominate the legal landscape of the 2030s.
“Today, in the year 2025, if you’re not using data analytics, you’re not in the game,” said Danny David, managing partner of Houston-based Baker Botts.
The New Reality
Bloomberg Law’s inaugural Leading Law Firms survey of nearly 100 firms revealed the scope of transformation: over 60 firms are using data analytics tools to build their business, while nearly half are deploying generative AI technologies to assist attorneys and serve clients.
Three firms emerged as innovation leaders: Seyfarth Shaw, Baker Botts, and McDermott Will & Emery, each taking distinct approaches to leveraging technology for competitive advantage.
Seyfarth Shaw uses generative AI to arm attorneys with more information delivered faster. “Using AI to optimize work will soon just be table stakes—if that’s not the case already,” says chair Lorie Almon.
Baker Botts has integrated AI and data analytics directly into lawyers’ daily workflows, viewing AI as both competitive advantage and leverage for practices.
McDermott Will & Emery made the boldest bet with a $20 million investment in its Legal Tech Fund. “We’re not looking to make a lot of money on that… The purpose is to be cutting edge,” explains firm chair Ira Coleman.
Data-Driven Results
Half of surveyed firms now use dashboards to drive decision-making and client relationships. The results are striking: Ballard Spahr drove profitability more than 30% from 2019 to 2022 after implementing data analytics and enterprise data warehouse systems.
“It was transformational to use prescriptive and predictive data to focus on ways each partner could improve profitability,” said Lisa Mayo Haynes, Ballard Spahr’s senior director of technology innovation.
Davis Wright Tremaine’s Dan Szabo describes finding “lots of low-effort, high-impact opportunities that we could capitalize on. And so we were able to move the needle very, very far, very quickly with just rudimentary information.”
The AI Revolution
Artificial intelligence is dramatically reducing time spent on routine tasks. Maureen Naughton at Lowenstein Sandler considers it “bad business practice” not to use AI for tasks like structuring agreements—work that can be reduced from three days to just a few minutes.
Some firms are building proprietary solutions. Davis Wright developed DWT.ai for comprehensive attorney expertise views, while Ballard Spahr created in-house AI tools for clients. Success depends on data quality: “If they have no confidence in the data that you’re presenting to them, they’re not going to use what you provide,” Mayo Haynes explains.
The Stakes
The urgency reflects a critical truth: “I think the top 10 firms of the 2030s are being determined right now, and AI adoption is a critical component of that,” Szabo says.
Naughton frames the choice starkly: “I don’t think you can really survive at some point without some strategy on how you’re going to leverage these tools to be more effective and efficient.”
The firms that successfully integrate AI and data analytics into core operations will have significant advantages in efficiency, client service, and profitability. Those that don’t may find themselves struggling to compete in an increasingly technology-driven market.
The innovation race is on, and the window for establishing leadership is narrowing rapidly. The firms investing now in AI and data analytics are positioning themselves not just for short-term gains, but for long-term dominance in tomorrow’s legal industry.
Read more: Bloomberg Law
