Gen AI and the Practice of Law 2025: From Hype to Enterprise Adoption, Cultural Shifts, and the Billable Hour’s Future

Legal IT Insider’s 2025 report reveals generative AI’s shift from experimental use to enterprise adoption in law firms. It highlights risks like AI errors and the need for human oversight.

Categorized in: AI News Legal
Published on: Jul 11, 2025
Gen AI and the Practice of Law 2025: From Hype to Enterprise Adoption, Cultural Shifts, and the Billable Hour’s Future

LITI’s 2025 Gen AI and The Practice of Law Report

Legal IT Insider has released the 2025 Gen AI And The Practice Of Law Report, examining the major technological and cultural changes taking place in the legal sector. This report explores how generative AI is moving beyond hype to become a core force reshaping legal work.

Unlike earlier tools like OCR or search platforms, generative AI introduces what the report calls an “epistemological disruption.” This means lawyers are shifting from being the original creators of legal content to curators and overseers of AI-generated material.

From Pilots to Enterprise Adoption

The report notes a clear move from experimental AI pilots to widespread, enterprise-level use within law firms. AI is now integrated into key legal tasks such as research, drafting, due diligence, and even client-facing services.

However, it also warns of risks including AI hallucinations, the potential erosion of professional judgment, and concerns over data confidentiality. A particular caution is raised about overreliance on AI potentially stunting the development of junior lawyers.

Firms are encouraged to avoid blind delegation to AI systems. Instead, they should implement structured human-in-the-loop processes and establish AI governance boards—a practice already adopted by over 80% of AmLaw 100 firms.

Economic Impact on Law Firms

On the business side, the report discusses how generative AI is affecting traditional law firm models, including the billable hour. Some firms may decrease hiring of junior lawyers, reallocating resources toward technology experts and AI workflow designers.

Global Regulatory Differences and Ethical Considerations

The report highlights diverging AI regulations worldwide. The EU’s AI Act imposes strict requirements on high-risk AI systems, whereas the US and UK take more permissive approaches.

Looking ahead, the intersection of client expectations, AI maturity, and ethical concerns will become critical. This is especially true for client-facing AI tools that risk crossing into unauthorized legal advice.

The firms best positioned to succeed will be those that integrate their AI strategies with firm culture, client needs, and legal responsibilities, rather than simply chasing the newest or flashiest tech.

For legal professionals interested in practical AI skills and courses, resources like Complete AI Training’s tailored courses for legal jobs can offer relevant guidance.


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