AI Transformation in Legal Work: Reshaping Teams and Business Models

Zach Anderson
Jan 08, 2026 10:20

Exploring how AI is transforming legal teams, business models, and modern legal skills, highlighting the impact on workflows and strategic roles in both law firms and in-house departments.

The legal industry is undergoing a significant transformation driven by the adoption of artificial intelligence (AI), which is reshaping how legal teams operate and deliver value, according to a recent report by RSGI. This shift is prompting both law firms and corporate legal departments to rethink business models, redesign workflows, and redefine the skills needed in modern legal practice.

AI’s Impact on Teams and Business Models

AI is bringing about meaningful structural change across law firms and in-house legal departments. For law firms, AI enables new business models, such as subscription offerings and workflow-based pricing, becoming feasible as routine tasks can be completed with greater efficiency. This shift also drives changes in talent strategies, creating new roles and expanding the skill sets required.

In-house legal teams experience similar transformations. AI enhances internal capacity, allowing departments to handle more work internally and reduce reliance on outside counsel. This shift frees lawyers to focus more on strategic partnerships, process design, risk management, and deeper business engagement, positioning general counsels for a broader role.

Building the Right Foundations for AI Success

The report identifies key behaviors that differentiate organizations effectively leveraging AI from those still adapting. These include defining organizational ‘value’ with AI, nurturing power users, consistently tracking usage, offering scalable training programs, and encouraging knowledge sharing.

Defining value allows teams to measure progress, while power users, typically forming 20-30% of a team, demonstrate best practices and accelerate adoption. Consistent usage tracking reveals opportunities for further impact, and lightweight training programs ensure AI becomes integrated into daily workflows. Knowledge sharing through real-world examples and peer-to-peer insights fosters greater AI adoption.

Creating Space for Higher-Value Legal Work

AI’s integration into legal workflows is not only speeding up routine tasks but also shifting focus towards strategy, creativity, and judgment in legal work. Lawyers are increasingly engaging in value-focused work rather than volume-driven execution, enhancing problem-solving approaches and client experiences.

This transformation is also altering the skills valued within legal teams, emphasizing communication, collaboration, and cross-functional thinking alongside technical expertise. AI is not replacing lawyers but augmenting their capabilities, allowing them to concentrate on the human elements that clients most value.

For more detailed insights, the RSGI report and an on-demand webinar are available through Harvey.ai’s resources. [source name]

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