The legal industry is facing challenges to the traditional hourly billing model, as the rise of generative AI has sparked both optimism and concern. Optimists believe that AI can enhance efficiency by assisting in document drafting and contract review, while some lawyers worry that the widespread adoption of AI may undermine competitive advantages, particularly for large law firms that rely on junior staff to handle a significant volume of complex cases. A survey indicates that about one-third of UK law firms are concerned that AI could negatively impact profits and profit margins, as the use of AI may lead to a reduction in the workload of junior staff, who typically handle this portion of work.

UK legal giant Allen & Overy has launched ContractMatrix to help lawyers draft standard legal contracts. Over 1,000 lawyers are already using it, and five companies plan to trial it in January next year. Developed in collaboration with Microsoft and AI startup Harvey, the tool aims to improve lawyers' efficiency and reduce costs. It can draft non-disclosure agreements and merger contracts, and has even been used to generate the world's first 100% AI-generated contract.