The data contradicts the widespread expectation that legal AI and automation tools would reduce billable hours. While the specific mechanisms driving the increase remain unclear, evidence suggests firms are capturing previously untracked work—short emails, administrative tasks, and other client-related activities that went unrecorded before. Firms in this cohort have simultaneously expanded headcount by 34% and increased case volume by 36%, indicating they are taking on more work rather than simply working faster.
For attorneys at small and mid-sized firms, this finding reframes the immediate impact of legal technology. Rather than eliminating billable hours, these tools appear to be enabling firms to monetize work that was previously invisible. The tension between efficiency gains and the hourly billing model—which still governs 90% of legal spending—means that productivity improvements are translating into expanded capacity and revenue rather than reduced hours. Firms should monitor whether this trajectory continues as technology adoption deepens, and consider whether their own time-tracking practices are capturing all billable work.