Could BigLaw blame AI for staffing cuts? Experts weigh in
Could AI be responsible for law firm staffing cuts? (Image from Shutterstock)
Earlier this month, Baker McKenzie announced it would cut hundreds of business professional roles because of the adoption of artificial intelligence and other changes in the firm’s operations.
But according to recruiting and staffing experts who spoke with Law.com, AI alone shouldn’t be blamed for the layoffs at Baker McKenzie or other firms in the future. They told Law.com that reducing inefficiencies or large staffing overheads are more likely to be significant factors.
Jennifer Johnson, chief executive officer at consulting and recruiting agency Calibrate Strategies, characterized AI as an “accelerant” that has revealed inefficiencies in firms, Law.com reports. In her conversations with firms of all sizes, how to reorganize and work with leaner professional teams has become a primary focus.
Johnson also notes that firms that have hired CEOs with business rather than legal experience are taking a different approach to support staff.
“Now that [law firms are] behaving more like businesses, they’re going to have to make harder choices,” Johnson told Law.com. “Sometimes that means changing the business model and how many people you have in that model.”
Law.com reports that among Am Law 200 firms in 2024, Baker McKenzie had the highest total personnel headcount with more than 12,000 attorneys and staff. Its percentage of non-attorney employees was 62.1%, which was more than 10 percentage points higher than the 48.5% average for Am Law 100 firms.
Cat Casey, chief legal AI futurist at technology conference organization Masters AI, also told Law.com that AI is “a very convenient boogeyman to blame” for layoffs.
“Business needs change,” Casey said, according to Law.com. “So, I don’t think (AI) is going to be the cause, but it may accelerate or be a very good excuse for business necessary consolidation.”
Other firms, including Clifford Chance and Perkins Coie, also announced staff layoffs in the past year. According to Law.com, Clifford Chance cited AI as one of the reasons for its decision.
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