AI Adoption Grows in Law Firms Despite Traditional Billing
News related to:Best Law Firms · 3 min read
AUGUSTA, Ga., Nov. 5, 2026 /CourierPR/ -- Lawyers® today released the 2027 Best Law Firms® rankings in the United States, recognizing 15,671 law firms across 127 practice areas and 188 geographic markets. Now in its 17th edition, the rankings represent the top 3.41% of U.S. firms. The 2027 rankings highlight firms that have demonstrated professional excellence through a comprehensive research process, including participation from 30,024 lawyers who cast more than 3.8 million votes, evaluating firms nationwide. The process also incorporated feedback from 109,963 client references and 1,053 interviews with law firm and practice group leaders.
The 2027 rankings underscore the top-tier firms that have excelled in their respective fields, as well as the significant shifts in how the legal profession is adopting emerging technologies, managing client relationships, and navigating financial pressures. These rankings represent the pinnacle of legal excellence in the United States.
The release of the 2027 rankings comes at a critical juncture for the legal industry, as firms continue to grapple with the rapid adoption of artificial intelligence (AI) tools. The third annual Best Law Firms U.S. Legal Market Report, which draws on survey responses from 5,753 law firms across all 50 states and the District of Columbia, reveals significant shifts in how the legal profession is adopting emerging technologies, managing client relationships, and navigating financial pressures.
One of the most notable developments highlighted in the report is the significant increase in AI implementation among law firms. Among firms with 20 or more lawyers, 28% reported fully implementing generative artificial intelligence (GenAI) tools across multiple practice areas, up from just 11% in the previous year's survey. Adoption has accelerated particularly among larger firms, with 56% of firms employing 150 or more lawyers reporting full implementation, compared with 23% the previous year.
The report also shows that AI is becoming a competitive differentiator for firms. Among firms with 150 or more lawyers, 43% reported making AI part of their value proposition to clients, up from 23% the previous year. As adoption increases, law firms are strengthening safeguards around AI use. The share of firms providing training on the limitations and risks of GenAI climbed from 22% to 63%, while those establishing clear policies for AI use in client matters increased from 14% to 47%.
However, a significant divide remains between firms of different sizes. Among firms with 150 or more lawyers, 95% reported having clear policies governing AI use in client matters, up from just 19% the previous year. By comparison, only 26% of solo practitioners reported having such policies in place.
Despite growing adoption of AI-powered tools, the report found that traditional billing models remain firmly established across the legal profession. Seventy percent of surveyed firms reported offering alternative fee arrangements (AFAs), down from 72% in the previous year. Flat fees (69%), retainers (63%), and contingency fees (59%) were among the most commonly offered arrangements.
AI is beginning to influence billing practices, however. Among firms using GenAI, 25% reported reduced billable hours for certain tasks, compared with 19% the previous year. Another 27% reported increased efficiency without changes to billable hours.
The report also highlights significant revenue growth among smaller U.S. law firms. Among firms with two to 19 lawyers that provided financial data, average revenue increased 32% compared with the previous survey, reaching $5.15 million. Firms employing 20 to 49 lawyers reported a 29% increase, with average revenue reaching $21 million.
Despite these gains, firms employing 150 or more lawyers accounted for 83% of total revenue reported by survey respondents. Pro Bono Participation Declines for Second Consecutive Year
The research also identified a decline in reported pro bono hours among surveyed U.S. law firms. Average pro bono hours per lawyer fell to 25.6, down from 25.9 in the previous survey and approximately half of the American Bar Association's aspirational 50-hour annual benchmark. Among firms with 20 or more lawyers, median pro bono hours declined 11% year over year, while smaller firms reported a 19% decrease.
The 2027 rankings recognize firms across a broad range of legal disciplines. Five practice areas lead in the number of unique firms receiving National Tier 1 recognition: Commercial Litigation, Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Real Estate Law, Litigation, Construction, and Construction Law.
Certain firms also distinguished themselves through the breadth of their national recognition. Greenberg Traurig earned the most National Tier 1 rankings in the 2027 edition with 43, followed by Holland & Knight LLP with 42 and Morgan, Lewis & Bockius with 40. Among the "Law Firm of the Year"