Legal Leaders – Why AI Should Be Keeping You Up at Night

We're already seeing AI revolutionise other professional service industries. The marketing and advertising landscape looks very different to just 12 months ago.

Yet in boardrooms across the legal industry, there still seems to be paralysis around “What our AI strategy be?”.

The real question isn’t whether to adopt AI tools — it’s whether your firm will build the future of legal services, or buy it from someone else.

We are entering a once-in-a-generation shift — one where firms that build their own AI-native services and products will lead the market. The rest? They’ll be buying solutions from their competitors.

We have worked with legal tech companies from all over the world as well as forward thinking law firms that are building technology offerings to sell to their clients.

This is what the next wave of market leaders are thinking about. This is what they’re planning for. And if your firm isn’t already having these conversations — now’s the time to start.

Smaller Teams. Smarter Tools. Bigger Margins.

According to the World Economic Forum, AI makes it possible for much smaller teams to deliver more — and better — client value. 

“Access to better technology and a diversely skilled workforce has always been among large companies’ most significant advantages over smaller competitors. Today, GenAI is making these once-exclusive resources broadly accessible.”

This isn’t about marginal efficiency; it’s exponential. Entire workflows that once required human effort can now be productised, automated, and delivered at scale.

Firms building their own AI products can move beyond billable hours and into productised legal services, selling recurring access, on-demand tools, or AI-first advisory products.

When delivery costs drop and pricing holds, margins rise.

If you’re not thinking about how to turn your firm’s IP, workflows, and legal know-how into products, someone else is. And they won’t just be your existing competitors - they could be existing software vendors or your own lawyers that have an idea and launch their own venture.

Less human work for more profit

Build Once, Sell Forever: A New Business Model for Legal

AI has unlocked a long-awaited opportunity in legal industry: repeatable, scalable, subscription-based services that previously weren’t economically viable now are.

This is already happening — and it’s profitable. These aren’t tools to use internally.

These are new technology offerings that clients buy, because they deliver faster, cheaper, more comprehensive solutions.

Law firms have the domain expertise. What’s missing is the product mindset.

From Client Service to Client Platform

The next generation of clients doesn’t just want advice — they want tools. They want access to your insight in real time. They want to self-serve when possible and escalate when necessary.

Firms that build their own platforms will deepen their relationships, increase switching costs, and create defensible recurring revenue.

The old way: Clients call, you advise.

The new way: Clients get answers, and escalate to you if needed.

This is the SaaS-ification of legal services. But not software as a service. Service as a software. And it’s already begun.

Service as a software.

If You Can Think It, You Can Build It (But Should You?)

AI dramatically increases what individuals can achieve — and accelerates how quickly you can test ideas. But that doesn’t mean everyone should build.

However, if your firm has deep expertise in a niche, and a clear understanding of client pain points, you are in the perfect position to build AI-powered products that solve real problems.

Greg Isenberg puts it well:

“Rebuild traditional products with AI as your unfair advantage, hiding the complexity behind familiar interfaces.”

Law firms can do exactly this. Build AI-powered tools that look and feel like traditional service delivery — but run on software underneath.

Don’t “sell AI.” Just deliver better, faster, cheaper outcomes.

Outcomes clients want delivered faster and more efficiently

Your Relationship Is the Moat. Your Platform Is the Bridge.

AI levels the playing field in delivery — anyone with access to the tools can generate documents, perform legal research, and surface insights.

But what can’t be copied is your client relationship, your deep domain knowledge, and the trust you’ve built.

By turning your insight into productised tools and platforms, you not only extend your value — you embed yourself into your client’s business. That is how you build a moat in the age of AI.

The AI-Native Firms Will Build. The Rest Will Rent.

“There will be two types of companies: native AI companies that are great at it, and those who are on their way out of business.” Mark Cuban

For law firms, this means you can no longer afford to treat tech as a bolt-on. You must decide:

1. Will we build something new that changes how we serve our clients?

2. Or will we buy tech from someone else — maybe even from a firm that decided to build?

Firms that become AI-native — that create proprietary offerings instead of just using off-the-shelf tools — will outpace their peers in innovation, valuation, and long-term relevance.

The Five-Year Window That Matters Most

This moment is different from past tech waves. AI is not just another tool — it’s a foundation for a whole new class of legal products and platforms. We are in a 5-year window where:

• Legacy firms can reinvent themselves.

• Boutique firms can punch far above their weight.

• Entirely new revenue lines can emerge.

Miss this window, and you’ll be stuck watching others build the future while your margins erode and your talent walks out the door to join product-led startups.

Final Thought

You don’t need to spin up a dev team tomorrow. But you do need to begin the journey dip your toe in the productisation pool, even if it feels like unfamiliar territory right now.

• What unique IP do we already have that could be productised?

• What client problems could we solve through automation or AI tooling?

• How could we deliver value in a more scalable, technology-led way?

AI is the beginning of a new legal economy. And in this economy, the builders win.

If you're a lawyer or law firm with this topic front of mind - get in touch for an informal consultation at alex@legaltechcollective.com.

This post was inspired by The AI Daily Brief podcast and adapted to cater to the nuances of the legal industry.