AI is changing the economics of legal work, but nearly two-thirds of law firms still rely on traditional methods when setting prices, according to new research from BigHand.

The 2026 BigHand Legal Pricing and Budgeting Trends Analysis, based on responses from more than 800 senior legal finance professionals across the UK and North America, found that 63% of firms rely on familiar approaches when pricing matters.

Some 35% said lawyers most commonly default to standard hourly rates, while 28% copy pricing from a previous matter without adjusting it. Just 1% reported using pre-made templates within an existing pricing or budgeting tool.

That reliance on historic pricing models comes as AI begins to change both how legal work is delivered and what clients expect to pay for it.

More than half (56%) of firms reported increased client demand for AI-driven efficiencies or greater transparency around AI use. However, 35% said partner discomfort discussing AI with clients is the most common barrier to proactive conversations about the technology.

“Historical matter data is still incredibly important, but we have to be careful about using prior matters as the answer rather than as a starting point,” said Alexandra Guajardo, founder and principal of Xela Advisory, who is a leading industry voice quoted in the report.

“If the way the work is being delivered is changing, simply carrying forward the same staffing or pricing assumptions may not give us the right result.”…

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