The technology is ready. The question is whether the industry is.

Generative AI is already streamlininglegal services and improving work quality. But one fundamental questiondetermines whether the technology becomes an asset or a liability: how will firms invest the time it frees up?

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A well-documented problem

The legal profession rewards those who can cope with highpressure over time. The business model is built on billable hours, tightdeadlines and constant availability – and that comes at a price.

The 2020 IBA survey showed that 3 out of 5 lawyersexperience stress, sleep problems and anxiety[1].More than 40 per cent do not dare tell their employer for fear of consequencesfor their career. The Lawcare report from 2025 confirms that lawyers agedbetween 26 and 35 score highest on burnout – precisely at that stage of theircareer where they have not yet found their footing[2]

The flip side of this business model is lost talent and alack of diversity. Many female lawyers leave the profession after starting afamily – not because they lack ability or ambition, but because the publicsector offers what the legal profession does not: predictability andflexibility. Work culture is shaped by incentives. When the path to partnershipis tied to individual targets and constant availability, it is rational to optout during periods that require priorities outside of work. This represents aloss of skills that the firms themselves have paid to develop. An articlepublished by the Centre for the Legal Profession at Harvard Law School alsohighlights that the prevalence and severity of depression, anxiety and stresscan be documented as significantly higher among female lawyers compared to men[3].

The legal profession faces a key dilemma

AI's integrationinto legal practice can influence stress levels both positively and negatively-the determining factor is how firms implement it. AI can free uptime and mental capacity by automating manually demanding tasks such asresearch, contract review and translation. The time saved can be spent on whatdrives motivation: professional development, strategy work and clientrelationships. AI can also improve the quality of deliverables by acting as ”Devil’sAdvocate” - a sparring partner who challenges legal documents and uncovers weaknesses. This strengthens the sense of mastery and professional pride, whichare documented key factors for well-being and performance.

But there is another way – and it is risky. If the timefreed up is used to raise performance expectations without sufficient trainingand support, a classic mismatch arises. Occupational psychologist RobertKarasek described this as early as 1979: high demands combined with low controland a lack of support is a direct recipe for stress. This comes at a cost in the form of lower performance, weakened client relationships, higherabsenteeism and increased staff turnover.

When external expectations exceed internal resources, ‘technostress’can arise – and the consequences of this often cost far more than thetechnology invested in. And when female lawyers arealready more prone to stress, anxiety, and depression, this means that they, inparticular, will disproportionately bear the cost of this mismatch. This is not a sustainable move for law firms to make.

The new dominant currency in the legal industry

As document production and first drafts are produced morequickly with AI, it becomes harder to justify high hourly rates. Clients areincreasingly demanding new pricing models – fixed-price, subscription or hybridmodels that reward value and results, not time spent. Law firms that fail toadapt risk losing clients to competitors who are already capitalising on thefinancial gains offered by AI.

As profitability becomes more closely linked to deliveryand quality, a structural shift is also taking place: from individualperformance targets to collective results. This means that leadership can nolonger be a side project. Communication skills, interpersonal competence andthe ability to lead different personality types, manage complex processes andbuild strong teams will become more crucial than ever. New ways of measuringvalue creation will also open the door to more flexible ways of working – somethingthat can make partnerships attractive to talent at all stages of life andreduce the risk of losing key skills that companies have already invested indeveloping.

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What should the freed-up time be used for?

The 2025 Ediscovery Innovation Report shows that 42 percent of lawyers are already saving between one and five hours a week withgenerative AI[1]. Whatone then chooses to do with the extra time determines whether AI becomes a costor a financial gain.

AI can be used to bill for more hours. This is likely toboost revenue in the short term. But if used as a stick rather than a catalyst,the risk of long-term losses is significant. The alternative is to invest thetime freed up in building an AI culture – where psychological safety, learningand professional development are systematic priorities. It is not just aboutgetting to know the tool, but about learning it properly. It takes time, andthe financial gains do not immediately show up on the bottom line. But this iswhere solid, long-term results are built. For that ishow it is with investments in the psychological working environment or climate,as another example: the benefits of investing become apparent in the long term,whilst choosing not to invest may benefit thebottom line in the short term, but leads to fatalconsequences in the longer term. This requireslooking ahead and having the courage to take thenecessary steps, which may be unpopular amongst partners at present.

It is therefore not AI itself that determines theoutcome – it is the company’s strategic choice regarding how employees should use thetechnology, and which benefits to focus on in connection with AI implementation.One might cheekily ask: Should we opt for a short-term strategy that boosts thebottom line this year? Or should we instead pursue the long-term strategy thatenhances well-being and performance, strengthens client relationships,increases the retention of women in the industry, and brings about a shift inhow rewards – which have historically centred on individual performance – willinstead come to value the team’s overall performance? Seems like a simplechoice.

Choosing a strategy, however, is only half the battle.The other half is execution. The message is clear: law firms that invest ingood leadership and build a strong AI culture are best positioned for themarket of the future. As AI transforms the industry, the crucial question willbe who gets the people on board. Who prioritises sustainability. They are theones who will win the client.

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[1] https://www.ibanet.org/article/aef94ee7-38c9-49bd-aaa8-be1bbc2cf800

[2]  https://lawcare.org.uk/wp-content/uploads/2025/09/Life-in-the-Law-2025.pdf).

[3] (https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0250563)

[4] (https://www.everlaw.com/2025-ediscovery-innovation-report/).

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