Ford Motor Co.'s general counsel and the chief executive of law firm Cooley both issued stark warnings this week that artificial intelligence is eroding the traditional Big Law model and reshaping the competitive field. Their public statements signal that AI is moving faster than many law firm leaders acknowledge, and that Big Law's hold on the future of legal services is no longer assured.
Steven Croley, Ford's general counsel, wrote in an op-ed that his in-house legal team is generating efficiencies from AI more quickly than the Big Law firms he works with. He urged firms to move faster, noting that he will handle more work in-house and shift matters to firms that use AI to deliver net savings. Smaller firms, he wrote, may have an advantage in that race. "Big Law's historical advantages associated with economies of scale and the ability to provide 'one stop' legal services may become somewhat smaller in an AI world," Croley wrote.
Cooley CEO Rachel Proffitt published a separate op-ed the next day, framing AI as a threat to the "very model" that has sustained law firms. She wrote that firms which treat AI as just another efficiency tool risk weakening their foundation. New legal tech companies and AI native law firms are entering the competition "almost daily," she said. "Established law firms must continue to run successful businesses built on today's structures while architecting for a tomorrow that is already here," Proffitt wrote. "This creates our greatest challenge."
The warnings from both Croley and Proffitt underscore the urgency for legal departments and law firms to integrate AI for legal work.
In an interview, Proffitt said there is an "undertone" in the industry that Big Law is being overtaken by the AI wave. Cooley's clients-the firm is best known for advising early-stage companies-are at the center of that disruption. She said the public conversation from law firm leaders has not yet matched the scope of the changes. "As a profession, I don't want it to feel like we're sitting and waiting for something to happen to us," she said.
AI native law firms enter the field
AI native law firms are a relatively new category. In November, Blackstone put $50 million into the entity behind Norm Law LLP, an AI-native legal services company. A startup in Y Combinator's 2026 class called General Legal offers flat-fee legal work for the types of startups Cooley represents. Proffitt said Big Law cannot ignore these new entrants, but she views them as an extension of a longer trend: tech-enabled companies taking over routine work. For now, clients still turn to Big Law for complex, bet-the-company matters, but there is no guarantee that will remain the case. "We have the expertise, and we have to bring the technology to bear to deliver that expertise to clients differently," Proffitt said.
Pressure on the billable hour
That shift will put pressure on the billable hour model, which Proffitt said she expects to lose its central role over time. She said firms can respond by experimenting with clients on new pricing models, such as success-based fees, and that some clients are eager for such collaboration. "I don't think the billable hour dies tomorrow, but I do see it losing its central role over time," Proffitt said.
Leading through the change
For Big Law leaders, the moment presents a generational challenge. Proffitt said it requires asking partners who already have full-time workloads to find the "25th and 26th" hour in the day to help the business evolve. Leaders need humility because no one has all the answers, but they also need the "strength of conviction" to tell partners that changing how they work is necessary. This leadership test aligns with the broader challenges of AI for executives and strategy.
"It's not enough to stand on a stage and say this is where we're going and watch everyone walk there," she said. "It's not enough to suggest we'll implement a change management protocol and wait for the outcome. The real responsibility is bringing people along through the change."
Why this matters for legal professionals
Legal professionals in both law firms and corporate legal departments should take note: the accelerating adoption of AI is reshaping client expectations and competitive dynamics. In-house teams may gain more autonomy, while law firm partners may need to reconsider their business models and pricing structures. Those who adapt early-by experimenting with AI tools and alternative fee arrangements-will be better positioned as the market shifts.
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