How BigLaw and AI Is Changing the Law Business
Norma Harris, LawFuel contributor
In December 2025, Cravath once again kicked off a new salary scale for associates, pushing first-year salaries to $225,000, with eighth-years pulling $430,000+. Not to be outdone, Kirkland & Ellis and Latham & Watkins matched within days.
And more pay deals occurred, such as the boutique market-leading pay deal here and the recently reported Cravath-busting scale announced by New York boutique Rolnick Kramer & Sadighi.
Pay Transparency Goes Viral
What’s different this time? Transparency is the key here. Following pressure from younger lawyers and new pay equity laws in states like New York and California, firms are publicly posting salary scales, and that’s sparking firestorms on social media.
One Reddit thread on r/LawSchool gained over 1,200 upvotes in 24 hours after a poster shared their firm’s full comp package, including bonuses tied to billable hours and “culture” metrics and law firm culture generally.
On X, legal influencers debated whether this openness helps or hurts recruitment.
Top Comment:
“Yeah, $225K sounds great until you’re billing 85 hours a week and can’t feel your spine.” — Reddit user, BigLaw associate
Meanwhile… Legal AI Assistants Are Getting Hired
As salary inflation continues, many firms are quietly investing in AI, and it is not just for research. Tools like Harvey AI, Spellbook, and CoCounsel by Casetext (Thomson Reuters) are becoming virtual team members.
The growth of Gen AI legal drafting is something occurring everywhere within the law profession, as we reported this week with European law firms.
“AI Summer Associate” Pilot Programs
In November, two AmLaw 100 firms, reportedly Baker McKenzie and Clifford Chance, launched “AI Summer Associate” pilot projects. These bots are trained on the firm’s own internal knowledge base and assist with taks such as –
- First-draft contract generation
- Brief summarization
- Due diligence automation
- Internal memo creation
A managing partner in a leaked memo said:
“An AI assistant costs less than a first-year associate’s holiday bonus—and doesn’t take vacations.”
That statement has ignited online backlash and fear.
Burnout, Billables, and Bots: Associates Are Speaking Out
Legal Reddit is ablaze with posts from current associates who feel stuck in a system where high pay demands high sacrifice and where AI could soon replace the very work they’re killing themselves to do.
Lawyer burnout has been a major issue for year across all jurisdictions. And lawyer burnout stories are all too prevalent.
One viral Reddit post titled “Why I Quit BigLaw at $300K/Year” read:
“When I realized my firm was testing AI tools to do the same contract review I was doing at 2am, I knew the writing was on the wall.”
In-house counsel at tech companies are watching closely. If AI can reduce external legal bills by even 15 percent, there’s growing pressure to adopt these tools, or switch to firms that do.
The Bigger Picture: Law Firm Business Models Must Evolve
As client expectations shift toward efficiency, not just prestige, firms have some key factors to consider about how AI will affect their businesses. Including –
- Leverage ratios: Will partners still need armies of junior associates?
- Billing models: Can AI-supported workflows coexist with the billable hour?
- Talent pipelines: How do you train lawyers when AI does the junior work?
Legal recruiters report that more candidates are asking about AI integration, remote work, and mental health support than ever before.
Pay is still key, but it is not the only key any longer and associates are becoming more discriminating in a changing law marketplace.
SEO TAKEAWAYS FOR LEGAL MARKETERS:
If you’re in law firm marketing or management, here’s some key tips we believe can show you how to adapt to this dual trend:
- Be Transparent With Compensation
Embrace pay transparency to attract younger talent—but be ready to answer questions about expectations and work-life balance. - Position Your Firm as Legal-Tech Forward
Highlight AI adoption as a value-add, not a threat. Position your firm as a modern, efficient workplace. - Create Content Around AI Integration
Publish blogs, videos, and FAQs about how your firm uses tech ethically and efficiently. Candidates and clients alike are searching for this. - Market Work-Life Balance (If You Have It)
If your firm offers sustainable work hours, hybrid flexibility, or mental health support, say it loudly. It’s a competitive advantage.
The legal industry is facing a dual reckoning, being the unsustainable pressure of rising salaries and the unavoidable rise of legal AI. For law firms, the challenge is not just keeping up but it’s staying human in a world where the machines are learning fast.
Pay wars might win headlines, but long-term survival belongs to those who balance tech innovation with genuine talent care.
