On 29 April 2026, Reuters reported, based on the Wells Fargo Legal Specialty Group, that revenues at the 100 surveyed Am Law 200 firms had risen by 13.1 per cent in the first quarter of 2026. Average standard hourly rates increased by 11.4 per cent. Demand grew by 4.5 per cent.
The diagnosis is clear: efficiency gains from generative AI are well documented, yet the revenues and profitability metrics of law firms show no sign of those gains mechanically translating into lower fees. The economically interesting question is: why?
The full whitepaper analyses eight explanatory frameworks, from the Jevons paradox to the structural persistence of the billable hour to regulatory inflation, and derives concrete recommendations for legal departments and law firms.