BigLaw Firms See Uptick in Demand and Expenses Amid AI Adoption

• BigLaw firms have experienced rare growth in demand and double-digit gains in revenue over the first six months of 2026.
• Demand was up 4.2% through the first half of the year, exceeding historical growth rates of 1.5% or 2%.
• Revenue growth across firms reached a notable 11.7% increase relative to the same period in 2025.
• BigLaw's expansion of income partner ranks and recruiting of specialists may contribute to increasing expenses.
• Firms' spending on AI accounted for 0.25% of revenue at the end of 2025, more than double its share from the previous year.

Demand was up 4.2% through the first half of the year, exceeding historical growth rates of 1.5% or 2%.

The recent surge in demand and revenue growth among BigLaw firms has significant implications for the legal industry as a whole. As these firms continue to expand their income partner ranks and invest heavily in artificial intelligence, they must also navigate increasing costs and potential compliance exposures. The Citi Global Wealth at Work Law Firm Group report highlights the need for lawyers to be aware of these trends and take steps to mitigate risks associated with AI adoption. In particular, areas such as data privacy and cybersecurity will require careful attention as firms continue to invest in emerging technologies. By understanding the drivers behind this growth and the challenges it presents, lawyers can better serve their clients and stay ahead of the curve in an increasingly complex legal landscape.

According to a new report from Citi Global Wealth at Work Law Firm Group, BigLaw firms have experienced rare growth in demand and double-digit gains in revenue over the first six months of 2026. The report notes that demand was up 4.2% through the first half of the year, exceeding historical growth rates of 1.5% or 2%. This increase in demand has driven revenue growth across firms, with a notable 11.7% increase relative to the same period in 2025. The report attributes this growth to several key factors, including large-cap and middle-market mergers and acquisitions activity, as well as work in the industrials, healthcare, and technology sectors.

The Citi Global Wealth at Work Law Firm Group report provides valuable insights into the current state of the US law firm market. The data highlights a significant shift towards increased investment in artificial intelligence among BigLaw firms. At the end of 2025, AI accounted for 0.25% of revenue, more than double its share from the previous year. This trend is expected to continue, with potential implications for data privacy and cybersecurity compliance. As firms increasingly rely on emerging technologies, they must also navigate the associated risks and regulatory requirements.

Lawyers should watch for increasing costs and potential compliance exposures related to AI adoption by BigLaw firms, particularly in areas like data privacy and cybersecurity.

Source: Original reporting via Citi Global Wealth at Work Law Firm Group report