As law firms double down on AI, 2026 is shaping up to be a year of reckoning rather than experimentation.

In LegalTech News’ latest predictions for the business of law, the focus shifts from adoption to impact. Firms are expected to feel the consequences of AI investment most acutely across hiring, pricing, and business development, even as questions around ROI persist.

On the talent front, some firms are likely to bring in non-traditional expertise, including operations and AI specialists, while others look to do more with less. Meanwhile, deal activity, litigation, and M&A are expected to remain strong, but pressure to move beyond the billable hour continues to build.

Despite uncertainty around short-term returns, there is little appetite to step back. AI transformation is now embedded in firm strategy, even if measurable outcomes lag behind ambition.

Commenting on what this means for law firm growth, James Barclay, CEO of Passle Inc, said:

“Law firms will continue to merge and drive growth through laterals. The real test will be turning those moves into meaningful results and measurable ROI. There will be continued focus on organizing efforts around their key industries, with business development teams tasked to help their lawyers work together and prove real value to existing and new clients. Artificial Intelligence will be expected to boost what marketing and business development can deliver, but the challenge will be getting tools that work quickly and effectively without a heavy lift and long timelines.”

The resounding message is that growth without coordination and proof of value won’t cut it. Firms will be judged on how effectively they convert investment, talent, and technology into outcomes that clients can see.

Read the full LegalTech News article for a deeper view on what’s next.