Large law firms divide on building or buying artificial intelligence as new technology spending remains low

Roughly two‑thirds of large law firms spent less than 2% of their budgets on new technology in 2024, while smaller firms under 500 attorneys allocated more than 5% to new tools. Industrywide AI spending is forecast to accelerate sharply from 2026 onward. Among the 66 firms that broke out spending, large firms’ technology subscriptions far outweighed new‑tech investment, yet a cluster of top‑tier firms is directing funds toward proprietary AI platforms—Kirkland & Ellis plans a $500 million investment in its own model, DLA Piper is moving toward an enterprise solution, and Ropes & Gray has opted to buy off‑the‑shelf tools. The build‑or‑buy decision is framed as both a technological and business choice, with some leaders warning against a false binary. Smaller firms, lacking the economies of scale to build custom AI, rely heavily on recurring subscriptions, and only the top roughly 50 firms find building viable. This spending split is segmenting the legal market, giving well‑capitalized firms a potential advantage. For legal professionals, the trend means partners at large firms must monitor how proprietary AI affects pricing, client expectations and data security, while lawyers at midsize and boutique firms need to assess whether subscription tools deliver real productivity gains or merely add overhead.

(Source：Complete Ai Training)