Analysis finds rate declines in AI-assisted work alongside growing divergence across legal market.
Houston – Wolters Kluwer Legal & Regulatory’s ELM Solutions business published the latest installment of its award-winning LegalVIEW Insights report series. Drawing on more than $230 billion in legal invoice data, the analysis suggests that artificial intelligence is slowly reshaping legal services economics amid rate declines in areas commonly associated with AI-assisted work.
“Legal departments are entering a new phase of the AI era,” said Jennifer McIver, Director, Legal Operations & Industry Insights at Wolters Kluwer ELM Solutions. “The organizations that will be best positioned for success will be those that can distinguish between work that benefits from specialized legal expertise and work that can be delivered more efficiently through technology-enabled processes.”
LegalVIEW Insights is an ongoing series of blogs, webinars, and content covering emerging trends from the LegalVIEW database. Highlights from the new report include:
- Rate declines around AI-assisted work: General drafting and review activities are showing a 2.1% YTD rate decrease. While still too early to draw definitive conclusions, the report identifies this as a trend worth watching.
- Is AI impacting associate work?: Early 2026 data shows associate rate declines at several lower Am Law tiers and boutique firms, a notable departure from recent years. The largest decline occurred among Am Law 151–200 firms, where associate rates fell 10.2%, from $434/hour to $390/hour.
- The legal market may be growing increasingly bifurcated: Premium firms like those in the Am Law 26–50 segment are continuing to demonstrate strong pricing power through double-digit rate growth. Meanwhile many lower-tier firms are showing signs of experiencing rate moderation, and in some cases associate-rate declines.
- Corporate work remains the most expensive practice area: Following two consecutive years of double-digit growth, rates associated with corporate matters show no signs of slowing down. Early 2026 corporate rates are increasing at a 9.9% pace year over year, nearly matching the elevated growth rates seen in the previous two years.
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