Clio’s 2026 Legal Trends Report shows AI adopters bill more hours. Average utilization rose from 39.1% to 42.2% in one year. Firms using Clio’s AI tools earn 8% more revenue per lawyer. They also see higher utilization and collection rates. AI helps firms tackle backlogged work sooner. It also reduces administrative tasks like expense entry. Better timekeeping captures previously unrecorded hours. Clio calls this the AI paradox: tasks get faster, but total billable time rises. The report notes gains may stem from improved time tracking, not productivity. Observational data does not prove causation. Hourly-billing firms are least likely to report AI-driven revenue gains. Consumers expect faster work to cost less. Most in-house counsel see no savings from AI use.
What changed
AI was expected to reduce billable hours by automating tasks previously billed by associates and paralegals.
What it unlocks
Law firms can now capture previously unrecorded time and address backlogged work more efficiently.
- 42.2% average utilization in 2026
- 39.1% average utilization in 2025
- 8% more revenue per lawyer for AI adopters
- $1,772 more revenue per lawyer per month
What you need to act on it
- use of Clio's AI tools
- hourly billing model
Sources