BigHand finds most law firms still price work the old way despite AI pressure

A new BigHand survey of more than 800 senior legal finance professionals says AI is changing legal delivery, but most firms still default to standard rates or past matter pricing. The research points to a widening gap between client expectations for transparency and firms’ ability to update pricing in real time.

Why it matters: - AI is changing the economics of legal work, but most firms have not yet changed how they set fees. - The gap matters because client demand for transparency, alternative fee arrangements and AI-related efficiency is rising. - Firms that cannot adjust pricing quickly risk margin pressure and weaker client relationships.

What happened: - BigHand released its 2026 Legal Pricing and Budgeting Trends Analysis on Sept. 15, based on five years of market data and new responses from more than 800 senior legal finance professionals across the UK and North America. - The research found 63% of law firms still rely on standard rates or pricing copied from past matters when setting fees. - More than half of firms, 56%, reported rising client demand for AI-driven efficiencies or transparency around AI use. - Thirty-five percent of firms said partner discomfort discussing AI with clients is the most common communication barrier.

The details: - Asked what lawyers most commonly do when pricing a matter, 35% of respondents said they default to standard hourly rates. - Another 28% said lawyers copy pricing from a past matter without adjusting it. - Just 1% reported using pre-made templates inside an existing pricing or budgeting tool. - Real-time pricing capability declined across every scenario measured, with drops of six to 13 percentage points versus 2025. - Under competitive pricing pressure, reported real-time capability fell from 30% to 17%. - Fifty-one percent of firms saw increased demand for financial transparency. - Forty-nine percent saw increased demand for alternative fee arrangements. - Nearly two-thirds, 63%, said they track budgets against actuals in a structured way. - Forty percent review budgets at key milestones. - Only 23% actively monitor and update budgets throughout the matter. - Among firms assigning matter budgets, 99% reported some increase in billing realization. - Improved profitability per matter and reduced reliance on manual or repetitive work were each reported by 31% of firms as AI benefits. - No dominant pricing approach has emerged for capturing AI gains. - Thirty percent of firms are keeping existing pricing and using AI efficiencies to improve profitability. - Another 30% are still deciding how AI efficiencies should affect future pricing. - Twenty-five percent offer discounts when clients allow AI use. - The report featured commentary from Brad Antici, chief pricing officer at Butler Snow, and Alexandra Guajardo, founder and principal of Xela Advisory. - Guajardo said historical matter data remains important, but prior matters should be a starting point, not the answer, when delivery changes.

Between the lines: - BigHand frames the problem as a “commercial adaptability gap,” meaning firms know what clients want but lack the connected data, governance and technology to act consistently. - The research suggests legal pricing is moving from a backward-looking model to a real-time commercial decision, but many firms still operate with older tools and habits. - AI is exposing that gap because firms can see efficiency gains, yet they have not agreed on how to share, price or explain those gains to clients. - BigHand’s top executive said clients are now better informed and have higher expectations around cost, value and the benefit of AI.

What's next: - BigHand is directing readers to the full 2026 report at the full analysis and is also promoting an upcoming webinar with pricing experts. - The findings suggest more firms will need clearer AI pricing policies, faster budget updates and better lawyer-facing pricing support as client scrutiny increases.

The bottom line: - AI may be reshaping how legal work gets done, but most firms are still pricing as if little has changed.