A major American law firm is making a massive financial commitment to artificial intelligence technology, announcing plans to spend $500 million developing its own custom AI system.
Kirkland & Ellis, which reported $10.6 billion in revenue last year, revealed Thursday it will spread the investment across three to four years, beginning with $100 million in 2026. The Chicago-founded firm employs thousands of attorneys worldwide.
While the company plans to continue using some existing third-party AI software, officials declined to specify which generative AI technology would power their custom platform.
The legal industry has become a major battleground for AI adoption as firms seek to improve efficiency in their operations and legal services. Some major firms have partnered with AI startups to create specialized legal tools. Last month, London-based Freshfields announced a collaboration with Anthropic’s legal team to build AI applications for legal services.
Kirkland’s new platform will incorporate input from 250 of the firm’s attorneys and involve more than 180 technology specialists both within and outside the organization. The Financial Times initially reported details of the initiative.
Legal industry executives recently told Reuters there’s growing interest in custom-built AI solutions for specific business and legal functions, along with ongoing discussions about internal versus external development approaches.
Andrew Johnson, chief information officer at law firm Brownstein Hyatt, noted the shift in thinking about custom development.
“I would say that’s largely not the case anymore,” he said, referring to previous resistance to in-house development five years ago.
However, increased AI usage among attorneys brings significant challenges, including data protection issues and the technology’s tendency to create false case references, misrepresent legal precedents, or generate fictional legal sources. Federal judges have penalized lawyers in numerous instances where attorneys relied on AI for research or document preparation without proper verification.
Wall Street firm Sullivan & Cromwell issued an apology to a federal judge last month after submitting court documents containing incorrect citations and other AI-generated mistakes.
