How AI can increase your law firm's margins
AI in legal services isn’t just about cutting costs—it’s a powerful margin multiplier that enables law firms to scale workflows, adopt fixed-fee pricing models, and turn efficiency gains into sustainable, high-profit growth.

The real opportunity isn’t cutting costs. It’s increasing margin, because costs are just one piece of the puzzle. Margin growth goes beyond simply cutting invoices; it’s about driving efficiency to accomplish more without increasing workload. Imagine the impact of reducing operational time, enabling your team to handle more transactions simultaneously, without the risk of burnout. This creates momentum, allowing your team to focus more on building and strengthening client relationships, ultimately leading to sustainable growth.

Too many firms view AI as a cost-saving tool. But the true upside lies elsewhere in creating scalable, more efficient workflows that drive revenue growth without increasing overhead.

AI can reduce time spent on routine tasks. That much is clear. But the real advantage is what comes next: a more flexible pricing model, clearer value communication, and faster client delivery. Together, these unlock profitability that simply isn’t possible under traditional cost structures.

This isn’t theoretical. In a recent M&A deal, Unilever used AI to review more than 15,000 contracts in under a month. They saved over 6,500 hours, expanded the review scope, and increased accuracy by 18%. With a hybrid model of AI plus human oversight, they reduced total review time by 70%—and scaled their contract volume by 20x without adding headcount.

That’s what margin transformation looks like.

Why most law firms aren’t capturing this upside

Despite results like Unilever’s, adoption remains slow. Only 26% of lawyers currently report using generative AI tools. The hesitation is understandable: legacy systems are comfortable and the first AI tools didn't meet the required trust.

But evidence shows new AI tools improve efficiency up to 140% and actual quality of legal work up to 28%.

One mid-market firm recently reported that a corporate client refused to pay for paralegal hours unless GenAI was used to eliminate them. The message is clear: “If you won’t optimize, we will.”

The firms that win in this new landscape won’t be the ones who reluctantly adopt AI to reduce internal costs. They’ll be the ones who restructure how work gets done and how it gets priced.

Emma Legal is built for scalable, margin-rich workflows

Emma Legal is a prime example of AI not just supporting legal work, but transforming the economics behind it.

Emma enables firms to:

  • Review thousands of documents in hours, not weeks
  • Flags legal risks and missing documents across entire data rooms
  • Assign tasks and track progress  across the legal teams
  • Deliver structured, client-facing outputs that reinforce pricing clarity and justify fixed fees

For firms doing high-volume, high-stakes work like M&A, this means two things:

  1. Deliver faster than the competition
  2. Offer pricing that reflects impact, not time

When work can be completed 70% faster with 20x the scope, firms can take on more matters, offer clearer deliverables, and protect (or increase) their margins (even as prices come down).

The economics of AI-assisted legal work

Let’s break down what AI-assisted due diligence actually looks like:

AI lowers the labor cost, but more importantly, it enables profitable flat-fee models. Clients save money. Firms earn more. Margin is no longer squeezed in, it’s designed into the engagement from the start.

What the new pricing infrastructure looks like

AI doesn't just change how you deliver legal service; it changes what you can offer. With automation and standardization in place, leading firms are building entirely new pricing models.

They’re rolling out:

  • Fixed-fee packages for due diligence, document review, and employment audits
  • Tiered pricing based on complexity, volume, or urgency
  • Outcome-based billing tied to milestones, not billable increments
  • Subscription models for portfolio clients with ongoing legal needs
  • Productized services like contract templates, risk assessments, compliance bundles, all delivered at scale

And they’re doing it with the confidence that their delivery systems, powered by platforms like Emma Legal, can support predictable margins every time.

What AI-driven growth actually looks like

Firms that embrace AI aren't just adding new tools. They're rethinking the structure of legal work.

Here’s how leading firms are doing it:

  • Hiring fewer generalists, more specialists (IP lawyers, tax lawyers). Not just to deliver work, but to design and optimize the workflows behind it and scale them with expert knowledge that your clients love to pay for.
  • Creating hybrid workstreams. Combining human judgment with automated review, all within the same engagement.
  • Standardizing pricing frameworks. With AI-backed data, firms can finally price for scope instead of time.
  • Embedding AI in Business Development. The firms winning RFPs aren’t the cheapest. They’re the ones showing clearer timelines, better turnaround, and predictable pricing powered by AI.

AI isn’t about efficiency, it’s about leverage your expertise fully.

There will always be a ceiling on billable hours. But there is no ceiling on leverage. And AI, when paired with the right delivery and pricing model, offers exactly that.

The firms that thrive in 2025 won’t just be the ones who work faster. They’ll be the ones who use that speed to unlock new business models, create margin by design, and scale their expertise without scaling their costs.

That future isn’t hypothetical. It’s here. And Emma Legal is already helping firms build it.