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Artificial intelligence is compelling major law firms to fundamentally rethink and transform their longstanding business models and traditional ways of operating.

In 2021, Volkswagen AG approached the prominent international law firm Freshfields Bruckhaus Deringer with a complex regulatory challenge. The German automaker’s technology division was preparing to roll out new software features for its vehicles and needed to ensure full compliance with local regulations across more than 100 countries where its cars are sold.

Under the conventional approach, this would have required coordinating with local lawyers in each jurisdiction to review and approve the updates. The process typically involved significant costs—thousands of euros per country—and would need to be repeated in full whenever any component of the software changed in the future.

However, this time Freshfields took a different path. Its specialized seven-year-old division focused on integrating advanced technology with legal services proposed a more innovative and efficient alternative solution.

This example highlights a broader shift taking place across the legal industry. As AI tools become increasingly sophisticated, big law firms are being forced to reimagine how they deliver value to clients, streamline operations, and stay competitive in a rapidly evolving landscape.