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Law Firms Build Bespoke Legal AI to Gain Competitive Edge

Financial Times Companies •
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Law firms are increasingly building bespoke legal AI platforms to gain competitive advantages over rivals. While standard AI tools automate routine tasks like contract drafting, premium firms seek custom solutions for complex, commercially sensitive work. Harvey and Legora lead the legal AI market, with the global legal tech sector projected to reach $70bn by 2033 from $31bn in 2026.

Kirkland & Ellis allocated $500mn to develop its own AI platform, arguing that widely available tools 'raise the floor for everyone' but don't differentiate premium services. Similarly, Freshfields partnered with Anthropic to build specialist legal tools using Claude AI, gaining direct access to developers. Goodwin Procter plans to spend about $25mn annually on AI development, already deploying a venture financing tool.

Sebastian Lach, partner at Hogan Lovells Cadwalader and co-CEO of Eltemate, notes that premium legal advisers need 'premium tools' - technology 'you basically can't buy...off the shelf.' Eltemate has built about 10 legal AI tools, including for litigation and regulation tracking. Alan Mason, Freshfields' global managing partner, states they're 'not wedded to any particular AI model today, or technology, because we're fully expecting these things to evolve.'