The report's scope and methodology remain unclear. Details about the firms surveyed, the time period analyzed, and the specific practice areas covered have not been disclosed. It is also unknown whether the increased hours reflect greater complexity in cases, deliberate rate-stacking strategies, or simply the absence of promised AI productivity gains.
For attorneys at small and mid-sized firms, the data suggests a troubling reality: AI tools have not yet delivered the labor savings vendors promised. More immediately, the trend signals that survival in a tightening 2026 legal market may depend on volume and rate increases rather than efficiency. Firms should assess whether their own hour inflation reflects genuine case complexity or a failure to implement AI effectively—and whether clients will tolerate higher bills without demonstrable value. Larger firms reporting record 2025 profits may face client pushback in 2026 demanding proof that rate hikes correlate to efficiency or superior outcomes; this SMB data suggests that proof remains elusive across the market.