Innovations: Fresh Thoughts for Managing
 

Unwrapping AI: What Law Firms Should Expect — and Prepare For — in 2026

Being ready for AI’s many use cases will be one of your team’s most important tasks heading into the new year.
By Gary G. Allen, Esq.
November 2025
 

This holiday season, artificial intelligence is delivering a gift to the legal industry. But what’s in the box?

Some law firm leaders hope for breakthroughs that streamline operations and boost profitability. Others worry they’ll unwrap a tangle of tools they don’t know how to use — or worse, a wedge that drives a deeper divide between lawyers and staff. 

Whether you’re excited or apprehensive, one thing is clear: 2026 will be a turning point for firms trying to modernize the way they work, attract and retain talent, and deliver legal services in a rapidly changing market. AI is part of that transformation — but it’s not the whole story. 

Here’s what legal administrators need to know and do to prepare. 

1. Process Automation Is No Longer Optional

AI is accelerating a long-overdue shift toward streamlined, automated workflows. Manual billing, document routing and intake forms that get passed around via email are already being replaced by intelligent systems that do the work faster and with fewer errors. 

In 2026, you’ll see AI deeply integrated into everyday tools. Microsoft 365, for example, is quietly adding features that suggest email responses, summarize documents and draft memos. Billing and accounting platforms are auto-generating time entries and predicting payment delays. These tools won’t feel “futuristic” — they’ll just feel normal. 

But automation doesn’t work without structure. Firms must map their core workflows, eliminate redundant steps and ensure that the technology is working for their people and not just creating new complexity. The real ROI comes from automating around clear, consistent processes. 

Action: Identify one high-friction workflow like time tracking or intake and create a 90-day plan to streamline it using existing tools or automation features. 

2. Retention Will Be the Hidden Cost of Falling Behind 

Top legal talent increasingly expects to work in a well-run firm — not just one with high-quality legal work. When internal systems are clunky, communications are unclear and compensation lacks transparency, your best people notice, and they leave. 

AI isn’t just about technology. It’s about enabling people to do more meaningful work. Automating low-value tasks frees up time for high-impact contributions and allows lawyers and staff to focus on client outcomes, not admin chores. 

Top legal talent increasingly expects to work in a well-run firm — not just one with high-quality legal work. 

Retention in 2026 will hinge on two things: clarity and growth. People want to know how they’re evaluated, how they can succeed and that the firm is investing in modern tools that support their work. 

Action: Pair any tech rollout with a people strategy: clear expectations, transparent metrics and training that supports evolving roles. 

3. Your Services and Marketing Must Speak the Same Language 

One of the biggest obstacles to growth in 2026 isn’t lack of demand but lack of clarity. Too many firms are still selling legal services the way they did a decade ago: vague, reactive and centered around hourly billing. 

But clients want value-based pricing, predictable outcomes and a clear understanding of what they’re buying. If your website doesn’t reflect what your services do — and if your billing doesn’t match that promise — you risk losing business to firms that offer better alignment between product and message. 

AI can help here too. It can analyze client inquiries, identify patterns in service delivery and even assist in drafting more client-friendly service packages. But the heavy lifting still lies in talking to your clients and aligning what you sell with what they actually need. 

Action: Revisit your top three services. Are they packaged clearly? Is pricing transparent? Does your marketing reflect what you actually deliver?

4. AI Readiness Starts with Human Readiness 

Most firms aren’t struggling with AI adoption because of the tech; they’re struggling because they haven’t prepared their teams. In 2026, the firms that win will be those that treat AI not as a novelty but as a normal part of their business evolution. 

Most firms aren’t struggling with AI adoption because of the tech; they’re struggling because they haven’t prepared their teams. 

That means building basic data literacy across your team. It means involving users early in pilot programs and offering continuous support. And it means setting expectations around how AI will be used and evaluated. 

You also must ask tough questions: Is this tool secure? Is it trained on sensitive client data? Is the output reliable? Your staff doesn’t need to become data scientists, but they do need to understand what AI can and can’t do. 

Action: Build a simple AI readiness checklist for your firm, covering training, data policies and feedback loops. Start small and build from real use cases. 

Final Thought: Make 2026 the Year of Clarity 

The gift AI brings this holiday season isn’t magic. It’s momentum. Used wisely, it can help your firm gain clarity about your workflows, your people, your services and your future. 

The firms that thrive in 2026 won’t be the ones chasing every new tool. They’ll be the ones asking better questions, aligning their teams and designing systems that are built to evolve. 

So go ahead and unwrap the box. And make sure your whole team is ready to open it with you.

Your Firm’s AI New Year’s Resolutions for 2026 

Four focus areas to help your law firm thrive in the year ahead: 

Streamline Our Processes 

☑ We will map our most critical workflows (like billing, intake and reporting) to uncover automation opportunities. 
☑ We will automate at least one high-friction process in Q1 to reduce administrative burden. 
☑ We will ensure our core tech tools are integrated and AI-ready so there are no more siloed systems. 
☑ We will assign a process champion to lead each improvement effort. 

Support and Retain Our People 

☑ We will clearly communicate how AI will support (not replace) our team’s work. 
☑ We will invest in training that helps staff and attorneys use new tools with confidence. 
☑ We will connect operational improvements to workload relief and career growth. 
☑ We will align our compensation and KPIs to reflect both performance and collaboration. 

Align What We Sell With How We Sell It 

☑ We will package and price our top services in ways that are clear and client-focused. 
☑ We will update our website and proposals to highlight value and outcomes and not just hours. 
☑ We will use client feedback and data to refine what we offer. 
☑ We will identify and double down on our most profitable, high-demand services. 

Get Smarter About AI 

☑ We will update our internal policies on AI use, data security and client confidentiality. 
☑ We will establish a feedback loop to measure impact and adjust as we go. 
☑ We will designate a leader or team to stay on top of legal AI trends and share what they learn. 

Pro Tip: Don’t try to tackle every resolution at once. Pick one from each category and build momentum. Revisit this list quarterly to track your firm’s progress and celebrate your wins.

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