The legal profession is experiencing a significant shift in its approach to technology, particularly with the adoption of generative artificial intelligence (gen AI) within e-discovery processes. According to the 2025 Ediscovery Innovation Report by Everlaw, in collaboration with the Association of Certified E-Discovery Specialists and the International Legal Technology Association, 37% of e-discovery professionals are now utilizing AI technology, a considerable rise from just 12% two years ago.
Efficiency gains are a primary driver of this technological adoption. The report indicates that 42% of AI users have managed to save between one to five hours per week due to AI implementation. If applied over a year, this equates to 260 hours per individual, effectively reclaiming 32.5 workdays annually for higher-value activities. For large organizations, such as an average Am Law 200 firm, this could mean recovering more than 196,820 hours yearly, equating to the workload of around 95 full-time employees.
This shift towards AI is significantly influenced by the transition to cloud-based systems. The report highlights a marked “AI divide,” as legal professionals using cloud-based e-discovery software are three times more likely to employ gen AI compared to those with on-premises systems. Although this is a decrease from a five-fold difference observed last year, the gap remains noticeable, reinforcing the advantages cloud systems bring in facilitating AI adoption.
The legal billing landscape is also poised for disruption. With gen AI’s efficiency, 90% of surveyed professionals believe it will alter traditional billing practices like the billable hour within two years, with 20% anticipating changes soon within the next 12 months. As Alex Su, Latitude Legal’s chief revenue officer, notes, this moment presents legal firms with a “unique opportunity” to explore alternative billing models, such as flat fees or results-based pricing.
Despite these advancements, the survey reveals a dichotomy of cautious optimism within the profession. While 70% of respondents maintain positive sentiments towards AI, reflecting a 5% increase from 2024, 63% still express concerns about the profession’s readiness to handle AI’s impacts, although this figure has improved from previous years.
The pace of AI’s adoption is particularly striking when compared to other technologies. For instance, it has reached a similar adoption level to cloud-based e-discovery software, which took a decade to achieve, in just three years. Eddie Kim from Everlaw describes this as a “pivotal shift” in the profession’s utilization of gen AI, moving from initial hesitance to strategic application.
Overall, the report underscores an inflection point for legal professionals, with cloud-based infrastructures offering a distinct advantage for those ready to embrace AI. As the landscape evolves, the ability to navigate these changes will be crucial for law firms aiming to stay competitive in a rapidly transforming legal industry.